Evening star., 1933-03-23
NEW BANK PLANS
MEETING APPROVAL
OF stockholders
Conference Due Tomorrow
on'PropoSaI for Potomac
National.
STOCK SELLING RAPIDLY,
SAYS CITIZENS CHAIRMAN
Possible Reopening of Other Dis
trict Banks Await Treasury
Decision.

Plans to reorganize the Potomac
Savings Bank into the proposed new
Potomac National Bank, are expected
to be approved at a meeting tomorrow
OF stockholders of the former.
The meeting will be held at 1 pm
at the office Of the company. at Ill
South Fairfax street, Alexandria, which
is maintained as the legal headquarters
of the bank, as Virginia corporation.
Fully rs per cent of the stockholders
of the Potomac Savings Bank already
have signif1ed their approval of the
plan. according to William H. Clark,
chairman of the Citizens Committee
formed to organize the new national
bank.
Stock Selling Rapidly.
Meantime stock in the new bank is
selling rapidly. according to Mr. Clark,
at $50 share. $50 of which goes to
capital, and $50 to surplus. The new
S3OO,O00 Is to be capital and 100000
surplus.
Application already has been filed
with the controller of the currency for
q national bank charter, and as soon as
this is granted it is planned to elect
officers and open the new institution
at the same location, Wisconsin avenue
and M street, in Georgetown, probably
sometime next week.
Reports concerning the possible re-
opening of other banks in the District
which have not yet received their Ii
censeS to open on an unrestricted basis
continued to circulate, but there was no
definite information available as to
when any of them will open their doors
for resumption of business. Officials
OF the banks continued to work on
plans for reopening, but had not yet
heard from the Treasury Department
concerning final approval.
Trust Accounts Authorized.
The Franklin National Bank today re-
celved authority from the Controller of
the Currency to open new trust ac-
counts for depositors to use as check
ing accounts. Deposits in this fund are
10 be subject to checking without re-
Strlctlon and are to be segregated from
other funds in the bank. The deposits
Will be kept either in cash, in the Fed
eral Reserve Bank or in Government
securities, under authority OF the emer-
gency bank law. This bank recently
was turned over by the national bank
examiner In charge as conservator to
A1io1iiao = I1lChIIldll, vice pI6SlQeQC OF
the bank as conservator
John E. Dwyer, attorney, has written
to Controller of the Currency Await
protesting against the move under way
by Col. Wade H. Cooper, president of
the Commercial National Bank, to re-
organize the bank. Mr.. Dwyer in his
letter said:
Pursuant to my conversation with
your Office on the 21st instant, please
be advised that having received nu-
merous protests from many depositors
OF the Commercial National Bank of
this city regarding the transfer of the
books and records of said bank to one
Wade H. Cooper, a formal objection of
any such transfer is hereby submitted.
Those depositors who have voiced
or to be taken by Mr.. Cooper, or any
one acting for him, have assured me
of their personal support in thwarting
any move on the part of the officials OF
this bank to force or propose any plan
for reorganization of this institution
without the written consent OF a ma
jority Of said depositors.
Trusting that any action which you
may take in this matter will be for the
benefit of the depositors, remain,
JOHN E. DWYER."
r. F. C. Examines Banks.
Meanwhile scores of closed or re-
etricted banks throughout the country
are being carefully examined by en-
ployes of the Reconstruction Finance
Corporation with view to purchase
of preferred stock by that Government
agency so the institutions may be re-
opened.
The corporation is empowered under
ha ho y,ly ~ ccnd MQrrh q fn
into partnership with bankers through
purchase of preferred stock. thus sup
plying capital for reopening. In some
Instances, where banks still have first
class collateral, loans are being made
as in the past.
The purchase Of the stock, however,
Is being hedged about with every safe
guard. officials have taken the atti-
tude that corporation stockholdlng Is
equivalent to a selective guarantee OF
bank deposits in the institutions 1t
takes hold of and that it must be care
full to see to it that the institution is in
such shape that there will be no dan
ger of its closing again. For this rea-
son, as one man put it, the corpora
ton wants to know lot about any
bank" in which it becomes a partner"
Many Ask for Help.
The only larger purchase OF such
stock thus far made was In the new
Detroit bank.
Quite a number of banks in Louisiana,
Arkansas, Ohio and other States have
asked for help, and, as a result, the
examining force of the corporation Is
flooded with work. Examiners also are
busy in Cleveland going over the books
of closed banks in that section.
Several weeks will be necessary to
complete the examinations. So many
banks are asking aid that it is impos-
sible to handle them except in rota-
ton.
Three Sacramento, Calf, citizens
have been expected here for the last
two days to discuss with Treasury and
Reconstruction officials plans for re-
opening the California National Bank
In that city. They have not yet ar
rived, however.