Evening star., 1933-05-23
u. s. SAVINGS GROUP
.HOP|NGFOR MERGER
Col. Wade H. Cooper, Major
ity Stakeholder, Reported
Blocking Action.

Minority stockholders of the United
States Savings Bank are largely in IA
vor of joining the new bank merger,
the Hamilton National Bank, despite
efforts by Col. Wade H. Cooper, presi-
dent of the bank, who owns more than
half the stock to preserve its identity
This developed at a meeting at the
bank attended by large percentage Of
the minority stockholders.
No quorum was present, so a formal
vote on joining the Hamilton National
was not presented.
Col. Cooper did not attend the meet
ing He was understood to. be out Of
town.
| Government officials declined to make
any comment today on the situation
In regard to this bank.
Early Relief Stressed.
In other financial circles, however, it
was pointed out that the only method
| now available for the early relief Of
depositors' money in the bank is through
! the merger which will make available
/ dS SUOn dS LllC 1lCW Ddllk 40 OPCh Nv
per cent of the depositors' money.
Col Cooper, In resisting attempts to
have the bank join the merger, has
reiterated his majority ownership and
pointed to the large dividend paid in
the past The United States Bank,
however, was not given license to
reopen after the bank holiday and since
March IA has been in the hands OF q
conservator.
With six banks already in the mer-
ger, and the campaign for selling stock
| at S25 a share well under way, reports
| in the financial district today men
toned again the possibility of the
Franklin National Bank uniting in the
consolidation. The Franklin has con-
tinued in vigorous effort to reopen on
| its own. as an individual bank. But the
opportunity of joining the merger Is
still held before this institution, and 1t
was predicted in certain reliable quar-
| ters that eventually the Franklin may
become member bank of the Hamilton
National.
| The six banks already in the merger,
| the Federal-American National Bank &
Trust Co., the District National Bank,
the Potomac Savings Bank, the Wash
| ington Savings Bank. the Northeast
Savings Bank and the Woodridge ge-Lang-
| don Savings g. Commercial Bank today
! pushed forward their plans for selling
| stock in the new Hamilton National.
Launched at Meeting.
| The stock selling campaign Of the
Northeast Savings Bank was launched
last night at mass meeting at Stuart
| Junior High School. Several speakers
explained the plan for setting up the
new Hamilton National, of which
| Northeast Savings Bank would be a
branch.
The meeting was largely attended,
/ and was followed by action on the part
| of many depositors, signing up for
stock in the new bank in place OF their
previous subscription for stock to re-
open the Northeast Bank as an inde-
pendent institution.
DepoSitors were asked to subscribe
for stock to the extent of 1914 per cent
of their deposits, which was only half
of what had been asked before. In the
original plan the depositor signed a
waiver on 25 per cent of his deposit,
for stock at SIS share, $40 to 60 to
par value, and SIS to surplus.
Under the new plan for the Hamil-
ton National Bank stock the depositor
Is asked to subscribe for only 1872 per
cent of his deposit for stock at $25 a
share, $40 of which goes to par value
and only S. to surplus.
Under the new plan the depositor
would have so per cent of his deposit
made available, and from that would
be deducted the cost of his stock. 1t
was predicted, however, that another
dividend would be payable soon to de-
positors as the conservator of the bank
realizes on the other assets of the old
bank which have not been turned over
! tn the new Hamilton National
! Praises Bank Officials.
Major w. Irving Shuman of the
Treasury Department paid high tribute
to the officers and directors of the
Northeast Savings Bank. He character
ized them as showing splendid spirit
of cooperation" with the Government
The main purpose back of the plan OF
the Hamilton National Bank, Mai
Shuman explained. is to protect the
interests Of depositors first. He out
lined the entire plan for setting up the
new bank, and assured the depositors
that back Of the assets of the bank
there still remained the liability of the
stockholders for an assessment.
Maj. Shuman referred to the finan-
cial support which the directors already
had given to bolster up the northeast
bank. He characterized Edwin C. Ora
ham. who is to head the new Hamil-
? ton National, as splendid citizen"
Mr.. Graham called on the depositors
to support the new bank because il
was the best plan devised to help the
depositors themselves
u I'VE propose to release $4,000 ,O0C
throughout the CITY," he said, when
we make available so per cent of the
/ deposits In each of the member banks
He promised that the Northeast Saw
, ings Bank would be the northeast
branch of the Hamilton National Bank
. Leonard P. Steuart, president Of the
| Northeast Savings Bank explained thai
stockholders of the bank previously hao
: put in over 100000 and that five big
, depositors we're ready to put up another
| large sum in case the previous sale oi
. stock to reopen the bank Individually
/ had been completed. He said, however
1t was more advisable for the bank Il
become part Of the larger big Haulil'