Evening star., 1933-07-14
RECEIVER MAY ASK
AMOUNT Of PARK
SAVINGS SHARES
Assessment Against Stock
holders Expected Next Move
in Court Fight.
DEPOSITORS REQUEST
COURT RECElvERSHIP
Committee Would Restrain Others
From Filing Separate
Actions.

With the defunct Park Savings Bank
now the center of court fight, the next
new move probably will come from the
Treasury Department and its newly ap-
pointed receiver. to assess stockholders
for 100 per cent of their shareholdings.
This appeared the most likely step as
both sides to the court fight girded for
legal battle to determine the status
Of the bank, where on March Ia Robert
S. Stunz, its vice president and cashier
killed himself. leaving an estimated
shortage of more than 81 100000.
The depositors' committee. headed by
J. w. Thompson, and represented by
Attorneys E. Hilton jackson and William
Richardson, have asked the court to ap-
point receiver under jurisdiction of
the court. and to restrain others from
filing separate suits. They claim the
charter of the bank expired under Ala
bama law in August 80. 1880, and that
therefore the Treasury Department has
no authority to administer the affairs
Of the bank. 1t is indicated in the
committees bill that they may resort
to the possibility of suing the directors
personally as co-partners.
Action by Treasury.
Meantime the Treasury Department
StcpPCo ultO tllt SltudllCll
shortly before the suit was filed in
court. and plsced in charge of the
bank. a receiver. John F. Moran. to
succeed the conservator. j. L. Bailey.
who had been in control of the institu-
ton.
The Controller of the Currency prob
ably will take the next logical step, it
was believed in well-informed circles
today, and proceed to assess 100 per
cent liability on all the stock of the
bank. The stock of the Park Savings
Bank, as explained in bill filed by the
Depositors' Committee was originally
$4,000 but was increased to 100000
But the affairs of the bank itself, due
to the suit filed in court yesterday. now
appear to be SO complicated that future
prospects for depositors appear to be
divided into several different possibili-
ties.
Two Angles to Problem.
Generally speaking the problem di-
vides itself first into the question Of
whether the bank is to continue in
the hands of the receiver appointed by
the controller or whether the De-
positors Committee will succeed in
wrestling it from his hands. and having
the bank placed in the hands of re-
ceiver to be appointed by the court.
If the Depositors' Committee should
succeed in its efforts to establish that
the controller of the currency does not
have authority. and get receiver ap-
pointed by the court. it is believed the
committee would then proceed under
the Alabama statute, which it quotes in
it's bill, to hold the directors liable for
the losses in the bank. Members of the
committee. however. have carefully re-
Trained from making any predictions
concerning the possibilities of their
filing suits against the directors to re-
cover loss.
Complications Seen.
There are complications also around
the 100 per cent stock assessment
which the Treasury may attempt soon
to collect Under the laws of the State
of Alabama there is no double liability
for bank stock. The controller, how
ever, has taken charge of the bank
under the District of Columbia code
and the national bank act. If the Dis
trict of Columbia cole and the ma
tional bank act are held to give the
controller authority he may be able to
assess UP to 100 per cent of the stock.
Those at Conference.
The conferees at the Treasury De-
partment yesterday when the differ
ences over the Park Savings Bank came
to a head included Deputy Controller
of the Currency Await, G. B. Springs
ton, attorney in the Office of the con-
troller of the currency: Otis Kent,
Joseph T. Sherier Ralph B., Fleharty,
counsel for the Directors Committee
of the bank E. Hilton Jackson, Will
liam E. Richardson, counsel. and Will
liam j. Neale, member of the De-
positors' Committee.
While the Depositors' Committee,
which was formed as result of public
mass meetings, has opposed the move
ment to appoint Treasury receiver,
another group of three committees, rep
resenting the directors, stockholders
and various groups interested in the
bank. recently joined together to petit
ton the Treasury to appoint receiver
under authority of the controller of the
currency.
In statement explaining its suit,
the Depositors' Committee declares
the action ip court was filed as a
class suit land on behalf of all other
depositors similarly situated"
Statement on Suit.
"The proceeding as filed" said the
statement, contains a conservative,
statement Of the recent history Of this
bank. resultingA in enormous losses to
the depositors, entailed largely by the
betrayal of its former cashier, now de-
ceased. Another purpose of the pres
ent proceeding is to submit to court
of competent jurisdiction all OF the
legal questions involved, to the end
that all the assets of the bank may be
speedily marshaled and distributed to
those who are entitled to receive the
same under the direction of the court.
The bill also contemplates the judicial
determination of the liability, both of
the individual groups and corporations
dealing with and on behalf of the bank
after the expirat ton of its charter. on
August 80, 1929 The tangled legal
situation which has followed the clos
ing of the bank is one that was not
created by the depositors, and all
questions of rights and liabilities of the
respective parties will, it is hoped, be
determined in the suit just filed in
manner that will do an exact justice
to all.
The committee has not concerned
itself up to this moment with the ques-
ton of the establishment of another
bank on the site of the Park Savings
Bank, for the reason that it has not
seemed to the committee that the
present liquid prime assets of said bank
would be available or will be available
at any time in the near future, either
to permit said bank to consolidate with
one Of the existing institutions or to
organize a bank upon the basis of the
deposits available to the depositors. The
committee is in thorough accord with
the desirability of organizing a bank
to do business in Mount Pleasant, but
it is not believed that the present is the
time to 90 forward with such an or