Evening star., 1933-10-23
BANK APPRAISERS
FORD. c, NAMEDBy
ROBERTv v.FLEM|NG
Work of Passing on Assets of
Commercial National Bank
Has Been Started.
LIQUIDATION OF CLOSED
INSTITUTIONS is GOAL
Prospects Held Forth fer Relief of
Depositors in Four Banks
in Receivership.

Appointment Of the entire District Of
Columbia Committee which is to aP-
praise assets of closed banks here with
a view to speeding their liquidation was
announced today by Robert V. Fleming,
president OF Riggs National Bank. wh5
is chairman of the comm ttee for the
fifth Federal Re-erve district of the
Deposits Liou:daticn Board.
The local committee, it was an
riounced. has alreadv started work on
the Commercial National BAN which
was placed in the hands Of receiver
February % and has already paid a
dividend of 20 per cent.
The personnel Of the committee,
which is headed by Hilleary G. Hoskin-
son, vice president of the Riggs, consists
Of the following:
Howard Moran vice president of the
American Security g. Trust Co.: Frank
j. Stryker. president of the Columbia
National Bank; James Schick, president
Of the National Mortgage & Investment
Co., and A. H. Lawson, vice president
and real estate office of the Washing
ton Loan g. Trust Co.
Relief for Dcpositors Seen.
Although the Commercial National
Bank will be the only one among the 18
closed banks here to receive early at
tention from this committee, prospects
were held forth today for relief for
depositors in the four banks which were
placed in receivership here in July,
1892
This assurance was contained in a
letter from c. B. Merriam, chairman of
the Deposits Liquidation Board, to the
IL Federal Reserve district chairmen.
Explaining in this letter that the pur-
pose will be to make available as quick
ly as possible through liuuidating
agencies to banks closed after January
l, 1888, advances against assets under
their control so as to release funds for
dividend distribution to depositors of
closed banks. Mr.. Merriam virtually
predicted action later on banks closed
earlier than January l. 1888
Later on it is expected said Mr..
Merriam, that loans will be considered
banks closed prior to January /, 1888,
to make dividend distribution to de-
positors."
Two Banks in Receivership.
AS matter of fact. there are two
banks here placed in receivership since
the first of the year, the Commercial
National and the Park Savings Bank,
but the Park Bank is in such bad shape
following the suicide of it's vice presi-
dent, Robert Stunz, with an estimated
shortage now Of more than s2000,000,
that the local committee is not going
into this institution for the present.
The court case of the Park Bank comes
up Wednesday morning in Equity Court,
where the depositors will make fight
to oust the Treasury receiver, to declare
the bank a co-partnership, and to re-
cover their losses from stockholders and
directors.
Preliminary work already has started
in the Commercial National Bank with
a view to appraising assets so that the
local committee can make a, recon-
mendation for loan from the Recon-
struction Finance Corporation Experts
started last night. as a matter of fact.
preparing preliminary data for the local
committee.
-Four banks here are in the claSSlhca-
tion of having been closed before the
first Of the year, and depositors in these
institutions today were hoping that the
prospects Of loans later on to these in
stitutions might speed their next divi-
dendS. These four banks, with the divi-
dends so far declared, are Departmental
Bank, 65 per cent; North Capitol S-v-
ings, 1919 per cent; International Ex-
change, 1923 per cent; the Bank of
Brightwood, As per cent.
THE amount which depositors can be
paid" explained Mr.. Merriam in his let
ter to District chairmen, will be gov
erned by the amount of money that can
be loaned upon fair valuation of the
assets of the banks based on an orderly
liquidation of such assets over a period
of from three to five years, after reserv-
ing only what will appear sufficient to
pay taxes, expenses and interest during
the liquidating period. In some cases
where distributions have already been
made, it will not be possible to make
further distribution because the assets
remaining in the bank do not warrant
the payment of additional dividends.
On the other hand. if the conditions of
q closed banks assets will justify it,
more than one distribution may be
made as and when assets improve in
value. In cases where there are exist
ing loans against assets. full considera-
tion will be given to the value of equi-
ties above such loans in determining
what. if any, additional advances may
be made to receivers or liquidators."
The paramount object of establishing
the deposit liquidation provision of the
r. F. c.. Mr. Merriam explained, SIS to
place money in the hand OF depoSitors
with the least possible delay. Incl
dentally, in doing this we shall bring
about a more orderly liquidation OF the
assets of closed banks over period of
years and thus prevent dumping of as
sets at sacrifice prices"