Evening star., 1933-05-16
TWO MORE BANKS
MAY Join MERGER
Chevy Chase Savings Also Is
Being Considered as
Member.

Member.
Continued From First Page)
bank has been most enthusiastic. 1T
will not only strengthen the banking
situation" he said, by making avail
able many millions Of dollars the day
the new bank opens. but also restore
public confidence, and In turn be q
great factor in the stimuation Of busi-
ness throughout the District Of Co.
lumbia and vicinity"
Graham declined to estimate exactly
when the new bank will open. although
1t Is known that some predictions un-
ofIicially have pointed toward the first
Of June, or shortly thereafter. Much
work remains to be done before the
bank can be opened.
Graham also announced that the new
bank Is to have the services Of repre-
sentative of the controller OF the cur
rency, who Is to be loaned to the new
bank to assist in working out many ON
cial details Of organization, charter ano
preparation Of articles Of association
and bylaws. The name Of this omcial
may be made public soon when he Is ap-
pointed by Walter ]. Cummings, execu-
tive assistant to. the Secretary Of the
Treasury
1T is most fortunate" said Graham
in this connection. that in Washington
these banks can have immediate con-
tact with and cooperation Of the de-
partment which is ready to expedite
the complete organization Of the new
bank and thus more quickly make avail
able to many thousands Of depositors
funds amounting to $4,000, ,000."
Confers at Treasury.
Graham was in conference for long
periods yesterday with Treasury officials
and declared today that much progress
has been made in the selection OF q
name for the bank, the of1cial staff,
the personnel of the board OF direc-
tors, as well as the advisory boards OF
the several branches which the new
institution will have, and many other
very important matters concerning the
organization.
A joint meeting of the directors OF
all banks participating in the merger
has been called for l O'Clock Wednes-
day in the small ball room of the
k1Otel, wien 0IdIdH Will Out-
line plans in detail.
The Organizing Committee-composed
Of Graham, John Poole. president and
both Of the Federal-American National
Bank & Trust Co.: Joshua Evans. jr.,
president and conservator, and Capt
Chester Wells. chairman Of the Re
organization Committee Of the District
National Banks pushing matters for
ward rapidly.
Committee Is Formed.
For the purpose Of forming the
banks campaign on subscriptions, a
committee has been formed consisting
of Capt. Wells, Mr.. Eynon. George w.
Ofutt, president and conservator Of the
Potomac Savings Bank, and Thomas
E. FARRELL Of the Washington Savings
Bank. This group was said TO be pre-
pairing an outline Of the plan to be sent
to stockholders and depositors of all
participating institutions. Develop
mentS today thus were pointing toward
big combine which eventually may
include nine institutions. In addition
to the four already officially in the pic
ture, the two others expected today
which are the Northeast and Woodbridge
Banks, the other three understood to
be considering the proposal are the
United States Savings. Seventh Street
Savings and Chevy Chase
While details Of the program to be
submitted to all stockholders and de-
poSitorS have yet to be made public,
it was learned today that under the
plan the general principle of liability
to stockholders for 100 per cent of
their investment in bank stock has not
been eliminated. As matter Of fact,
1t was learned in reliable quarters to-
day the stockholders liability began
when the l3 banks. including three ma
tional and 10 savings banks. failed to
receive licenses to open for business in
the District. The stockholders. how
ever, are being approached in the first
place to subscribe for stock in the new
bank This applies not only to the
big merger. but also to the Franklin
National Bank. which apparently is still
endeavoring to reopen on It's own plan
IS an individual bank.
Depositors To Buy Stock.
With the participation of depositors
in the new capital structure of the
bank. many depoSitors will become
stockholders in the new institution un-
der plans under way and this will build
up the new capital structure. by which
1t was emphasized in official circles to-
day, all depositors may be assured tina,
the original stockholders in any of the
l3 banks which failed to get their
licenses have not been relieved Of their
liability for 100 per cent assessment.
This does not mean, however, that the
assessment will be necessary. 1t hangs
over the situation as an assurance OF
an added force of additional funds If
necessary.
The new merger plans to make avail
able so per cent of all deposits, or q
total of about $10,000,000, as soon as
the bank opens, with the general
thought in view that the so cents on
the dollar figure will be general for all
banks participating. How much more
the depositors will get depends upon
realization Of assets from their own
banks.
Opposed to Merger.
Col. Wade H. Cooper, president OF the
United States Savings Bank and owner
Of a majority Of the stock in the bank,
stated today that he can see no reason
for the bank merging with any other
bank. He said the United States Saw
ings Bank had for years earned from
40 to so per cent and paid a dividend
of 80, per cent. Col. Cooper added that
he has submitted plan to the Treasury
Department by which he hopes to pay
100 cents on the dollar to depositors.
This is one Of the banks which the
advocates of the new central bank mer-
ger plan have invited to join the move
The United States Savings directors have
held several conferences on acceptance
Of the proposal. but have rs yet reached
no decision. The conservator Is w. H
Zepp.