Evening star., 1933-12-12
THREE BANKS PUSH
REOPEN|NG PLANS;
ONE CHANGES NAME
Franklin and Mt. Vernon Seek
Approval of Waivers on
Deposits.
SPOKANE PLAN is USED
AT INDUSTRIAL SAVINGS
Thirty-fve Per Cent to Be Paid by
City's Only Colored In
stitution.

otAt0L4OAs
The Franklin National Bank, the
Mount Vernon Savings Bank and the
Industrial Savings Bank today pushed
forward rapidly with plans for reopen
ing.
The Franklin and Mount Vernon
which will merge with the Washington
Mechanics Savings Eank to form the
new Mechanics-Fran Savings Bank,
were working on their program inVolV-
ing waivers and sale of stock.
In the case Of the Industrial Savings
the only colored bank in the city, the
controller of the currency has approved
a plan for the sale of its prime and
liquid assets to a new bank to be Or
ganized and operated at the same
building at Eleventh and U streets, with
the release of 35 per cent of deposits
from the old institution.
Treasury Calls Plan Fair.
Approval Of this plan for the Indus
trial SAVINGS Bank was received late
yesterday by w. H c. Brown, president
and conservatOr. The Treasury agreed
to the plan as fair and equitable" 1t
provides for setting up new bank with
a different name, with capital struc-
ture, including $4,000 capital stock and
$4,000 surplus. This will be sold to
and to the public for S13 share, $40
of which goes to capital and So to sur
plus.
The new bank is to buy the best
assets of the old bank under the well
known Spokane plan, which was intro
duced here in the organ :Zation of the
Hamilton merger.
All details, such as the new name,
officers ard ether particulars, remain to
be decided
Conservator Brown said he soon
would submit to the Treasury the pre-
posed list of officers.
Spokane Plan Explained.
Under the Spokane plan, the prime
and liquid assets of the Industrial Saw
ingS Bank will be turned over to the
new institution and the remaining as
sets will be liquidated for the benefit
of depositors. A loan will be nego-
tiated on the remaining assets to raise
as much cash as possible to pay out to
depoSitors of the old institution toward
their 35 per cent.
The exact amount to be paid de-
positors has not been determined, al
though it is predicted to te about 35
per cent.
In the case of the Franklin the form
of a waiver agreement was in the hands
of the Treasury officials today. Bank
officers went over this form in great
detail last night. Unless some last
minute objection arose, it was pre-
dicted it would be approved by the
Treasury before night.
The agreement provides for the de-
positors Of the Franklin to waive IS
per cent of their deposits into the
hands of three trustees, in order that
they may receive IS per cent in cash.
It is necessary that depoSitorS holding
rs per cent of all the deposits in the
bank sign the waivers before the plan
can become effective
Pan TO SPeed Forms.
.-. Bank officials were eager to ct tie
new form in the mails. If it llached
them late today, it was to be rushed 10
the printer and may be mailed within
a few days The Franklin plan also
provides for sale of stock to stock
holders, depositors and the public at
$40 a share.
The Mount Vernon Savings entered
an important period, with series of
meetings of union labor organizations
scheduled to act on its waiver plan.
The Mount Vernon asks its depositors
to waive 60 per cent in order to receive
40 per cent in cash when the bank
opens.
Frank w. Lees, president of the
Mount Vernon, expected to get word
today from the first of the union
groups to act
The United States Savings Bank case
was at standstill as the findings Of
fact and the final decree in the court
case was further delayed Papers had
been prepared by the Treasury last
week. but counsel for Col Wade H.
Cooper and the Treasury had not yet
agreed to its final form for presenta-
tion to Justice Jennings Bailey in Dis
trict Supreme Court.
Justice Bailey the day before Thanks
giving, dismissed the plea of Col. Cooper
for mandamuS to force the Treasury
to reopen the bank. He is now await
ing the form of the findings of fact and
proposed formal decree. Until this is
promulgated, Col. Cooper is withholding
his next move, which is expected to be
a new proposal to reopen the bank, pay
ing depositors 65 per cent. Beyond this
cne figure there are no details available.
Favor Independent Bank.
The Central Business Mems Associa-
ton, of which Arthur Clarendon Smith
is president, has gone On record In
favor of establishment of an inde-
pendent bank under new management
at the United States Savings Bank
location.
An independent bank is preferred by
the merchants to a branch bank, ac-
cording to the expressed opinion of the
association disclosed in a formal state
ment issued by Mr.. Smith. But the
viewpoint of people in that area, near
Fourteenth and U streets, is solicited
by the Central Business Mems Associa-
ton, to determine more fully what
people there desire.
At the Park Savings Bank Receiver
John F. Moran announced claims have
been filed during the first week totaling
S1250,000. Mr.. Moran feels this is a
substantial response from the de-
positors, but he urged them to file
claims as soon as possible. The bank
is open daily until $50 pm, except
Saturdays, when it closes at noon.
There are almost $4,000, 900 in deposits
liability in the bank, but a shortage in
actual cash and assets exists, accord