Evening star., 1933-08-20

a ueGldIdllOll DS
Col. Wade H. Coop Wilbur H. Zepp.
er. president of the
unlicensed institution. that he is readp
to fight ito the last ditch" to prevent
the United States Savings Bank from
joining the merger
Announcement of Mr.. Zepp's appoint
ment was made by Edwin c. Graham
president of the merger. who stated
also that Mr. Zepp would be made a
director OF the Hamilton Bank
Col. Cooper has engaged legal con-
sci, he said. and already has laid plans
to take action when. the Hamilton
Bank goes into court for approval of
the contract which is to be drawn be-
tween the conServatcr and the Hamil-
ton Bank. IN connection with the mer-
ger This contract. which is one of
eight contracts to be prepared for the
eight member banks of the merger, will
provide for sale of sufficient liquid and
good assets cf the United States Saw
ingS Bank to take care of so per cent
OF the deposits Of the Savings Bank.
This so per cent liability is to be as
sumed by the Hamilton Bank, under the
plan. and the branch Of the Hamilton
opened at the old location of the United
States Savings Bank at Fourteenth and
U streets. The contract must be ap
proved by the court.
Remainder for Disposal.
The remaining assets of the savings
bank. which are not to be transferred
to the Hamilton Bank. would remain
in the hands of conservatOr, Gov
eminent officer, for gradual liquida-
ton. and transformation into cash divi-
dends to be turned over to depositors.
II boc ha O
that the United States Savings Bank
could pay substantially more than 50
cents on the dollar. Col Cooper claims
that it could pay out 100 cents on the
dollar to depositors. and he hopes to
force the Government to allow the in
stitution to do it without going into the
Hamilton merger
Unless the contract for the merger
Is presented to court soon. however
Col. Cooper said last night he was pre-
pared to go into court with an action
which would force the hand of the
Hamilton Bank. He would not reveal
its nature
The United States Savings Bank for
mally joined the merger movement over
stout protest of Col. Cooper. its presi-
dent. who owns a majority of stock in
the bank. Col Cooper made repeated
efforts to reorganize the bank to re-
open alone outside of the merger None
OF the plans which Col Cooper was
willing to agree to were acceptable to
the Treasury Department. and none of
the plans presented by the Treasury
Department for reopening the bank
alone were acceptable to Col Cooper
Finally. through action by the board
of directors of the bank. the institu-
tion moved to join the Hamilton
merger
Another 70 Be Named.
Now that Mr.. zepp, the vice president
Savings Bank. has been appointed
branch manager at the Hamilton
Bank at the old savings bank
location at Fourteenth and U streets. it
will be necessary for the Treasury to
name another conservator While it is
known that the Treasury is considering
new conservators for all those members
of the Hamilton Bank which have
turned their conServators into branch
managers. it is understood the Treasury
Is not yet ready to make public its Sc
lectlonS for conservators.
The Government has not yet shown
It's hand openly in the projected fight
between Col Cooper and the Hamilton
Bank, but it is believed that the sup
port OF the Treasury Department would
be thrown behind the Hamilton merger
The merger has been directed BY skill
1ul hands from the Treasury Depart
ment and from the Reconstruction
Finance Corporation. with cooperation
of bank officers of the unlicensed banks
concerned. Any real threat to the
Hamilton merger. it is believed will be
strongly resisted by the Government. in
one way or another. Whether the Gov
ernment will become a party to the
night IN court depends on the nature of
the suit or suits which Col. Cooper saws
he is ready to file
The opening date of the Hamilton
still was unknown last night with Off
clals declining to make any definite
predictions. Indications throughout the
financial district, unoffcially. pointed to
possible opening some time between
Labor day and September Is, unless
some unforeseen complication inter-
fereo.
Other Merger officials.
Besides the United States Savings
Bank. there are two other member
banks of the merger. whose conserva-
tors have become merger officials so
far. leaving the conservatorships to be
filled by the Treasury. They are the
District National Bank. whose conserva-
tor. Joshua Evans. jr.. becomes vice
president Of the Hamilton. and the
Northeast Savings Bank, whose con-
servator, George F. Hoover, becomes
branch manager.
Three branch managers have been
named for branches of the old Federal
American National Bank e. Trust Co.
L. E. Schreiner. Dupont Circle; Sher-
tenberg. Twentieth street and Pennsyl-
yania avenue.
The three remaining branch man.
ayers are to be named for the Potomac
Savings Bank. Of which George w
Offutt is conservator; Washington Saw
ings Bank, of which Robert A Sisson is
conservator; Woodbridge Langdon and
Commercial Bank of which E L. Nor
ris Is conservator. and Seventh Street
Savings Bank. of which John D. How.
ard Is conservator.