Evening star., 1933-09-05
CHARGES COOPER
WITHDREW FUNDS
Hamilton Attorney Claims He
Took Out $500 Before
Restriction.

Charges that Col. Wade Cooper
president and majority stockholder of
the United States Savings Bank, drew
some Of his own funds from this bank
before 1t was put on a restricted with
drawal basis last February, were read in
open court today during Cooper's last
minute stand to prevent consummation
Of eight contracts which would enable
the Hamilton National Bank to be
formed by transfer of assets from eight
closed banks, one of which is the United
States Savings
Attorney Roger J. Whiteford, repre-
senting Edwin c. Graham. designated
president Of the new bank. read the
charges from the Treasury Departments
return to Col Cooper's petition for an in
junction, as a counterblast to Cooper's
charges that Graham and Treasury De-
partment officials entered into con-
spiracy to wreck the United States Saw
ings Bank.
Drew Out Day Before.
whiteford said that the United States
Savings Bank on February % went on
a restricted basis. allowing depositors
to withdraw only S per cent of their
deposits month. On February 81, the
day before, Cooper's own balance was
s4,s123s and he reduced this by So, 100
by the next day.
Cooper at one stage injected him.
self personally into the argument when
George P. Barse. representing the
Treasury. said that Cooper had pre-
sented a plan for reorganizing the bank
which involved waiver by depoSitorS
of IS per cent of their claims
Il never asked them to waive
Nickel" Cooper explained. Il offered
to pay them dollar for dollar"
Il will hear only from counsel at this
time" said Judge Bailey.
Thomas challenged the Jurisdiction of
the court to approve the contracts, but
after brief argument between counsel
Justice Bailey decided he had authority
to hear the case.
Immediately after the noon recess,
Justice Bailey announced he would post
pone further hearing of the case until
tomorrow morning, when testimony will
be taken relative to the injunction plea
Col. Cooper is expected to be the prin-
tempt to show that the United States
Savings Bank should have been allowed
to reopen when other financial insti-
tutions in Washington were licensed at
the end of the bank holiday
Justice Bailey said he would take up
the matter of ratification of the con-
tracts for sale of the assets Of member
banks to the Hamilton after rendering
a decision on the injunction petition.
Hearing Before Bailey.
The hearing before Justice Jennings
Bailey was on the application Of the
conservators of the eight member banks
in the Hamilton merger for approval
of the contracts Of sale Of their class
A assets to the Hamilton. Concurrently,
the judge heard the petition, filed last
Saturday by w. Bissel Thomas, counsel
for Col. Cooper, for an Injunction
against the sale to the Hamilton Of
the United States Savings Banks
assets
George P. Barse, general counsel of
the Division Of Insolvent Banks Of the
Treasury Department, told the court
that If the contracts Of sale are ap-
proved, the Hamilton will be able to
make available to depositors so per cent
Of their funds within two weeks.
Statement BY ThomaA
Thomas said that conservators of
the member banks will be required to
hold all class B assets for six months