Evening star., 1933-06-06
HAMILTON BANKS
| OPENING ASSURED,
| GRAHAM DECLARES
Reports Progress on Sale of
Stock and Capital Struc-
ture Set-up.
NATIONAL COMMITTEE
OF DEPOSITORS PLANNED
Move Launched Here to Organize
for Action on Restricted and
Closed Institutions.


Edwin c. Graham, president Of the
proposed new Hamilton National Bank
merger, today characterized the prof.
ect as IAN assured success"
The campaign to sell stock and set
up the capital structure of the new
merger, Mr.. Graham said, was progress
ing, with all banks meeting with sue
cess
One member bank Of the merger
already has gone over the top with its
quota. Mr.. Graham said, and the two
banks which started intensive work
during the past week are getting favor
able response from their depositors and
stockholders.
Completing Organization Group.
Mr.. Graham is completing his Or
ganization Committee, the nucleus of
which will be IS men, representing the
seven member banks in the merger.
He expected to make public these names
late today.
Out of this Organization Committee,
it was understood, the new board of
directors would be selected. The new
board for the Hamilton Bank will not
exceed 20 members, Mr.. Graham said.
The seven member banks Of the
merger are Federal-American National
Bank g. Trust Co., the District Ma
tional Bank, the Potomac Savings Bank,
the Washington Savings Bank, the
Northeast Savings Bank. the Wood
ridge Langdon Savings & Commercial
Bank and the United States Savings
Bank.
Statement Is Mailed.
Total resources of the new Hamilton
Bank here would be $l2,531, $3.50, in
cluding the figures Of all seven mem
Der banks, it was disclosed in the re-
condition, appearing on the announce
ments sent to depositors and stock
vised estimated statement of financial
holders of the United States Savings
Bank. This last member bank to join
is understood to be bringing about
s800,000 in deposits into the Hamilton
representing so per cent of the deposits
of the member bank
Deposits in the Hamilton are shown
to have increased to $10,306, ,632.30.
The Hamilton capital still remains at
100000, however, and surplus at
$3.50, 900, making total capital struc-
ture Of $1,250,000.
The United States Savings Bank
through its conservator. Wilbur H. zepp.
has agreed to join the Hamilton merger,
despite the objection Of Col. Wade H.
Cooper, president of the bank, and
largest stockholder. Mr.; zepp as Gov
eminent agent. has authority to sign
proved by the Treasury Department.
William R. DeLashmutt heads the COM
mittee on subscriptions for the United
States Savings Bank.
Plan National Committee.
Meanwhile, the movement to form a
national committee of depositors in re-
stricted and closed banks Is getting
under way here, headed by Frank Fl.
Schrenk. Philadelphia banker, and
others.
A. Mitchell Palmer, former Attorney
General of the United States, has con-
sented to act as counsel for the COM
mittee.
Mr., Schrenk, president of the North
City Trust Co. of Philadelphia, and
in the Philadelphia Federal Reserve
district, has set up headquarters at
the Mayfiower Hotel under the name Of
the National Depositors' Committee"
Mr. Schrenk has communicated with
representatives Of all restricted and
closed national and State banks
throughout the United States.
5000 on Restricted Basis.
There are some 5000 restricted
banks in operation today" he said, "and
many thousand more are closed. Some
100000 depositors throughout the
country are affected. Thousands of
people with all their money frozen are
compelled to receive assistance from
city. State or Federal agencies.
1.-The efforts of the R. F. G. have so
far failed to benefit depositors Of closed
banks materially" Mr. Schrenk said.
Restricted banks to date have found
their efforts to obtain licenses to re-
open practically futile. The r. F. C.
requirements for preferred stock pur-
chases are impossible.
20.000,000 depositors-largely voters
first duty as bankers is to our deposi-
tors and we should make every effort
humanity possible to aid them"
Looking toward a preliminary Or
ganization, Mr.. Schrenk has called a
meeting of depositors in closed banks
to be held at the Mayflower Hotel, Sat
urday at IL am.
Objectives Announced.
He has called upon all presidents OF
restricted and closed national and State
banks throughout the country to send
representatives to this meeting
In his communication to these rep
rcsentatives Mr.. Schrenk says: I'VE
want tho roxtrirfad bov fo ba
opened Immediately 100 per cent and
the depositors Of closed banks paid of
go per cent"
Whether Mr. Schrenk has enlisted
any cooperation from the depositors in
13 unlicensed banks in the District OF
Columbia could not be learned early
today.