Evening star., 1933-03-22
POTOMAC SAVINGS
MAY REOPEN SOON
Institution to Be Reorganized
as National Bank to Re-
sumo Business.

Successful reorganization Of the Po-
tomac Savings Bank in time to resume
full banking operations next week. wa'
indicated today by officials. directori
and . special committee Of Georgetown
business and professional men who arr
working toward this end. :.
The plan contemplates changing the
institution to Q national bank, securing
membership In the Federal Reserve
system, and the raising Of $500, 600 in
new capitalization. This program has
been outlined In detail to Treasury
officials.
Odicials Of the Potomac Savings
Bank stated today. that resumption OF
full banking functions would mean that
the present depositors would not lose
any money. In other words, officials
say, they could begin drawing on Their
balances Just as II the bank had never
been In the list Of those which did not
receive Government licenses at the time
many others were permitted to end tbs
Nationwide holiday, on Tuesday
March IA.
Other Banks Active.
Activity also was underway in other
banks here which have not yet received
their licenses to reopen on an unre-
Stricted basis
Various possibilities presented them
selves to these institutions. Some, II
was learned, were working on what Is
structure" Institutions able so to cor
rect their situation as to meet the re-
quirements of the Government would
be able under this plan to reopen prob
ably within q short time.
Other institutions were known to be
setting up committees for reorganiza-
tion Of the banks, while in still others
there was talk Of merger or the sale
Of some banks to others.
In all the institutions where hope was
held out for reopening, the officers and
committees concerned continued today
to study the situation and where pos
sible they were taking action.
Some definite progress was under
stood to have been made in at least one
of the larger closed banks, but details
OF this progress were not disclosed to
the public.
Dates Not Yet Fixed.
In the meantime, a careful survey OF
all the institutions which have not We,
received their licenses disclosed that nc
definite date has yet been fixed for the
reopening of any of these institutions
Considerable hope was manifest among
some Of them that they would soon be
open for unrestricted operation, but nc
one could say exactly when
William H. Clarke, prominent George
town business man, Is given credit fol
starting the Potomac Savings Bank re-
organization move. He is acting as
chairman Of a committee of George
town. Virginia and Maryland citizens
who have been interested in the bank
Tor many years. He declared today
that the Potomac Savings Bank has
grown to such Importance in the greater
Georgetown area that its continuance
is necessity.
Under the new plan, as outlined by
Mr.. Clarke. the capitalization Of the
new institution will be $50o,OO0 1t is
proposed to issue 10000 shares Of thi.
stock at $50 a share par value. The
other 100000 will be paid-in surplus
$40 on each share being used for this
purpose. Each share of stock will bt
sold at $50 and the committee Is max.
ing an effort to have the shares dis.
tributed as widely as possible in the
community which the bank serves, Mr.
Clarke added.
Other members Of the Reorganization
Committee, who are being especially
active in getting the bank back to a
going institution" are E. H. Johansen,
]. T., Gibbons, Frederick Stohlman and
Farley Veale, Georgetown business and
professional men.
May Operate Soon.
The new institution, to be known as
the Potomac National Bank, would take
over all the assets and liabilities of the
old savings bank, which has been in op-
Grafton for 80 years. Many Of the de-
poSitorS never had any other banking
connections, the committee chairman
added
Officials declare the license was with
held because the bank was not liquid
1t has at all times been solvent. they
state. During the past two days the
directors have held almost continual
conferences and are in fullest accord
with the Reorganization Committees
efforts. Mr.. Clarke, leader of the re-
organization forces, is one of the di-
rectors.
The present directorate Of the bank Is
composed of William P. Ames, William
w. Anderson, Alphonse NJ Bae-, Emory
H. Bogley. B. Agee Bowles, William H
Clarke, Davenport B. Elgin. Harry K
Hobart. James c. Hoyle, Frank A. Kerr
Malcolm w. Morgan, George w. Ofutt
Henry w. Offutt c. Wendell Shoemaker
j. William Stohlman. Henry A. Storm
j. Clinton Tribby and Joseph M. Wise
Officers of Bank.
The Potomac Savings Banks officers
include George w. Ofutt, president;
Alphone M: Baer and B. Agee Bowles
vice presidents; c. WenSel Shoemaker
cashier; Emory H. Bogley, secretary
and Elmore T. Burdette, assistant
cashier.
The question of officers for the re.
organized bank was raised today. Com
mittee members announced that all the
present officers ARE available" These
committeeman said none of the de.
positors had blamed the officers for the
banks frozen condition" since thou
sands of banks all over the country
were unable to avoid the same situation
Under these circumstances, it Is ex-
pected that the present officers would
take charge of the new national bank
On the controllers last call, Decem-
Der 81, 1882, the Potomac Savings Bank
reported 81, ,783, ,26477 in deposits, The
bank has over $4,000 depositors.
The bank is located on the north
west corner OF Wisconsin avenue and
M street in Georgetown.