Evening star., 1933-07-27
TOPPER CENT LEVY
ON PARK SAVINGS
Stockholders Assessed Full
Amount by Controller and
Suits Planned.

The Controller of Currency today
levied an assessment Of 100 per cent
against the stockholders of the Park
Savings Bank.
In this connection the controller, II
| was learned, will file suit very shortly
| in the court against at least two prom
inent stockholders of this bank to test
the right Of the controller to levy such
an assessment.
The necessity for the suit arises be-
cause of the fact that the Park Saw
ings Bank was chartered under the
laws of the State of Alabama, which
do not provide for double liability on
bank stock.
Thus the Government takes thest
steps to attempt to clear up one phase
of the complicated affairs Of the Parl
Savings Bank, which have become
more and more complex since last
March IA, when Robert S. Stunz com.
mitted suicide, leaving a shortage esti-
mated at more than $1,50O,000.
Doubt Raised by Ruling.
Doubt already has been cast upon the
right of the controller to collect q 10C
per cent stock assessment from the
shareholders Of this bank because Of
q court decision bearing on this point
involving the insoivent Departmental
Bank. In decision in this case, the
court recently held that the Controller
of the Currency had a right to uqui-
date the bank, which was organized un-
der the State of Arizona, and could
apply the double liability clause of the
State Of Arizona.
On second point, however, the court
held in this same case that the con-
troller could not apply the 100 per cent
stock liability of the national bank act
This apparently would indicate that
there is doubtful point at issue in the
Park Savings Bank. The second point
in regard to the Departmental Bank
was abandoned by the controller s
Office. and not pressed for appeal, with
view to bringing the issue to a
specific trial in the case of the Park
Savings Bank, where the Alabama law
carries no double liability whatever.
United States to File Answer.
In the meantime, the Government is
preparing to file soon its answer to the
suit by the Depositors' Committee OF
the Park Savings Bank, which attempts
to oust the Treasury receiver and have
the court appoint instead receiver
under the authority of the court. Coun-
sci for the directors and stockholders OF
the bank and the Reconstruction
Finance Corporation, who are also de-
PENDANTS in the case, are preparing also
to file their answer within a few days
This suit by the depositors further
complicat@ the situation at the Park
bank by claiming the Treasury Depart
ment has no authority, on account OF
the fact that under Alabama law the
charter expired in 1929, and the bank
itself became a co-partnership. Under
a o-partnership, the Depositors' Com
mittee plans to proceed against the
directors and probably the stockholders
as well, to recover from them person
ally the full amount Of the loss.
Collection for Depositors.
In case the bank should be left by
the court in the hands of the controller
Of the currency, the controller, 1t Is
known, will proceed to collect as much
as possible for the benefit Of depositors
the double liability provisions OF the
national bank act. II this should fail
by a court decision, it Is believed the
Treasury would consider taking some
other legal means to get from the d.
rectors or stockholders what may be
obtainable for the depoSitors.
In assessing the double liability OF
stockholders, the receiver, John =
Moran, has been instructed to advise
stockholders to pay this assessmen,
under protest because of the pending
litigation. Any payments made Will OF
placed in a separate account IN tne
bank pending final determination o.
the issue by the court.
Meantime the controller Of the. cur
rency, it is understood, intends te
stoutly support his right to liquidat'
the Park Savings Bank by Treasury
receiver, regardless of the Alabams
law. The controller already has re-
ceivers in four other insolvent bank
in the District Of Columbia, each o.
which was chartered in some othel
State.
The controller is nquidating these
banks under authority of the District
of Columbia code and the national banl
act, which gave him wide powers.
Another complication is involved ir
the Alabama statute provision which
according to the Depositors' Commit
tee, would force the payment OF divi-
dends first to those persons with check
ing accounts, and after that to those
with savings accounts. The DepoSitors
Committee has claimed this would re-
suit In an inequitable distribution o1
what Is left In the bank. At the Treas
ury Department 1t was contended to-
day, however, that should the Treasury
freceiver be continued by the court te
liquidate the Park Savings Bank. he
probably would operate under the ma
tional bank act for so-called rat
able" distribution OF dividends. In
other words, the Treasury receiver
would pay the same percentage to
savings as to checking accounts. In
stead Of satisfying checking accounts