Evening star., 1933-09-07
BAILEY DOUBTFUL
|. Of BANK CONTRACT
Decision Hinges on Promise
Of Job to U. S. Savings Con-
seryator by Hamilton. I.
looptinusd Yron Y.rst Paye.)


locltlnusd From K!rst Raxe.l
the proposed hank eonservators desig-
mated for of11cia1 positions In the new
bank. In addition to Zepp, are:
Jo.hua Evans. r., conservator Of the
District National.
George p. Hoover. coossrvator Of the
Northeast Savings Bank
Robert A. Sisson, conservator Of the
washington Savings Bank.
=. L. Norris conservator for the
Woodridge-LAngdon Savings q Com
merciAl Bank.
Cooper Defends Withdrawal.
Col. Cooper earlier defended On the
witness stand hts withdrawal of most
Of his personal funds from the bank
the day before It went ON restricted
basis last February.
Cooper was being cross-examined be-
fore Justice Jennings Bailey in District
Superme Court In the trial Of his In
junction suit to prevent merger Of the
United States Savings with the pro-
posed Hamilton National Bank. He
said that when the withdrawal was
made on February ~ he did not know
that the bank would 60 on . restricted
basis on February 28. The banks
troubles. he said. became acute on the
2eth.
His action arose from troubles Of the
Commercial National Bank, Of which
he Is also president, he said He said
Directors Of the Commercial Bank ut
his home on February 26 and explained
to the directors that he believed 1t was
best that the bank be closed. They
passed . resolution giving him power to
do g he saw fit, although recommend
ing that the bank stay open on Mon
day. he testified.
On Monday, he said, he went to The
United States Savings Bank and drew
$500. intending to put 5000 IN his
personal account ct the Commercial
Bank 50 that he would have . respect
able balance in the latter bank when It
closed. II turned out. however. that he
already had Q large balance at the
Commercial Bank and 1t was not neces-
sary to make the deposit.
Didn't you know what your balance
was at the Commercial before you drew
the money from the savings bank?" At
torney Roger Whiteford inquired.
mo. I seldom inquired about my bal
ances." Cooper said
Whiteford Is representing Edwin C.
Graham, designated president Of the
new Hamilton Bank and one Of the
defendants In Cooper's injunction suit
to stop the merger During his cross-
examination Of Col. Cooper the ex-
changes several times descended into
personalities. Over and over Justice
Bailey halted Cooper and finally threat
ened to discipline him If the person
sltttes continued. Each time Col. Cooper
apologized to the court.
-Four DirecterB Favor Merger.
In spite Of Cooper's objection to the
merger plan, which he characterizes
States Savings, 1t was developed II
cross that four Of the
seven directors Of that bank had siGned
Q memorandum approving the merger
with the new Hamilton Bank. Those
signing were william d. Barry, Will
liam r. de LAshmutt, William r. Davis
and Charles A. Goldsmith.
Asked II he knew about this and II
he had not gone to New York when
the directors held their meeting, Cooper
charged that the meeting was held
in secret, that he never received any
notice Of 1t and that the meeting was
the result Of manipulation" of Mai.
w. Irving Shuman. one Of the Treas
ury Department oficials, who ID also q
In the suit.
Asked II ON one occasion he had not
said: ITO hell with the depositors"? !?
Cooper exclaimed: ITS an Infamous
lie. will pay the depositors In full
II It takes i've years. I viii save my
bank from this gang Of thieves II II
takes five years to do It."
This reply was one Of the many which
Justice Bailey ordered stricken from
the record.
Never Saw Petition.
Cooper was next asked what he knew
about . petition signed by some Of the
deposttors to open the bank 80 long a.
Cooper did not have anything to do
with 1t after 1t was reopened, and
whether Thompson's Dairy and q DR..
Tyler, substantial depositors, had not
signed the petition.
Cooper said he had heard about this
petition, but had never seen it. The
petition was shown to him and he was
asked II he recognized the signatures.
He said he believed he did.
Let Dr. Tyler say why he signed
that petition" Cooper exclaimed. Ties
here In court"
william n de LAshmutt, vice presi-
dent and cashier Of the savings bank.
was next called 10 the stand as Q wit
ness for Cooper. He said that he had
been connected with the bank since
1906 and that when It was closed he
left It because he had no further posi-
ton there. He returned May is, being
engaged By Zepp to sell stock In the
new Hamilton Bank to the savings
banks deposttors. He said he was paid
$235 . month from the assets Of the
bank to sell stock. His stock selling
exhausted itself" about Au-
gust l. but he Is still receiving the same
salary for working at the bank.
Quisssd Abeat signing.
He was asked by w. Bissen Thomas,
Col. Cooper's lawyer. II Maj. shuman
had not promised him position in the
new bank g part q the consideration
for signing the resolution urging merger
with the Hamilton Bank.
De LAshmutt said that ON one occa-
sion Maj. shuman had aaid to him:
ITS up to you to decide which one
shall be conservator and which one
manager In the new bank" (Zepp =
now conservator of the savings bank)
Up to that time De Lashmuft said, he
had no idea he was being considered
for either position, but he knows now
that Zepp has recommended him for
the conservatorship. Whistler this had
anything to do with the resolution, he
said he did not know.
Justice Bailey inquired very care
fully into the question Of whether stock
circulars sent out hy; D.
laahmutt. Or others had explained that
depositors in closed banks who refused
70 accept accounts In the new Hamt-
ton Bank would have their money
handed back to couservatcra Of their
closed banks and that the conservators