Evening star., 1933-05-27

to be made this afternoon.
The Franklin National Bank an
nounced today that depositors holding
81 100000 in deposits have agreed to
waive their rights and take stock to
permit the reopening of that institu-
ton.
The Franklin National Bank has no
idea cf joining the merger" said Wal
ter M. Brown, chairman of the Frank
Inns Reorganization Committee today.
This bank proposes to reopen as a
unit bank and has never seriously con-
sidered any other move, in spite of all
the reports given cut from other
sources" Chairman Brown added.
I'VE have raised 80 per cent of the
required new capital and expect to 60
over the top next week. In other words,
We have already raised 80 per cent of
the amount required, and are within
only about per cent from our goal, -
Mr.. Brown said.
President Cochran is keeping Treas
ury officials constantly informed on the
progress of the campaign to raise new
capital. He said that directors, stock
holders and depositors are all anxious
that the bank remain as separate in
stitution and are subscribing for the
new stock with that understanding. All
consolidation reports are unfair to the
bank, he added.
Col. Wade H. Cooper still was under
stood to be opposed to this institution,
Of which he is president, participating
in the merger But it was forecast
that, with considerable opinion among
minority stockholders in favor OF the
move, there was a possibility that the
United States Bank would decide def
nitely one way or the other very shortly.
Explains Bank Plan.
Mr.. Graham explained the proposed
Hamilton National Bank to a radio
audience last night in an address over
Station WJSV. Telling of the large
part played by the Government in di-
recting the new merger, Mr.. Graham
said, THE largest single influence in
reshaping of the unlicensed banks here
on an entirely sound basis is the Fed
elal Government represented by able
men in the Treasury Department, as
well as by its officials"
This should give you full confidence
in the plan." he said. predicting that
when the new institution is established
it will stand forth as a fine example
of sound. liquid, going concern, TAX
ing an immediate and active place
among the sound, splendidly organized
banks which were licensed at the time
of the bank holiday"
Explaining that no depositor would
be forced to subscribe to the new
stock, the speaker said, however that
it would be to the best advantage of
both stockholders and depositors to do
so. Il feel it Is your duty" he said
lin helping to complete the turning
of the tide of this business depression
as it appears to Washington, and which
undoubtedly has been turned through
out the country"
Progress was reported in the sale of
capital stock. Mr.. Graham declaring
that Substantial percentage of the
total already has been subscribed"
Appeals to Depositors.
"If you stockholders, if you deposit
tors, have your own best interest at
heart-and of course you do-if you
subscribe TO the capital stock of your
bank. to the extent of your ability, the
stock offer will be oversubScribed within
10 days. We shall then be able to open
for business. to offer you full bank
facilities again, and. most vital to you
depositors, we shall make available to
you so per cent of your money shortly
after June Is.
IF this happy result is achieved-and
I am confident it will be-Sl0, ,000, ,00G
will be made available for business in
the District of Columbia, many debts
can be paid, many long delayed and
much-cherished purchases can be made.
trade and industry will return more
nearly to normal, new savings and
checking accounts will be started and
a new sense of security. of financial
peace and order will be restored to
thousands of your homes. May I ap-
peal to you to think of this new un-
dertaking as your own undertaking. the
same as it is the problem of the re-
organization committees of the banks
concerned?"
At the Northeast Savings Bank
George F. Hoover, vice president and
conservator, announced progress in the
sale of stock His bank will be open
evenings from Z o'clock for the
convenience of persons inquiring about
the stock in the new bank.
The Potomac Savings Bank Is push
ing its campaign and is keeping open
tonight Sunday and Monday until 9
o'clock for the purpose of receiving
subscriptions. william H. Clarke Is
chairman Of the committee.