Evening star., 1933-12-27
CONFERENCE TODAY
SEEKS SOLUTION IN
u. S. SAVINGS CASE
Treasury Officials Will Meet
With Stakeholder and
Depositor Groups.
BOTH SIDES HOPEFUL
OF REACHING HARMONY
Court Rules Federal Authorities
Within Rights in Rejecting
Cooper's Plan.

The future Of the United States Saw
ings Bank was to be discussed today
at the Treasury Department in a con-
ference called by Gibbs Lyons, deputy
controller of currency.
Mr.. Lyons expects to bring together
representatives of both stockholders and
depositors, In an effort to reach some
conclusion concerning this institution.
which has been restricted since the
bank holiday in March.
The conference. scheduled for pm.
was to be attended by COL Wade H.
Cooper, president of the bank, who owns
30 per cent of the stock, and one or
both members of his counsel, w. Bissell
Thomas, and John w. Staggers. and
three members Of the Depositors' Com
mittee-E. S. Grape, A. Lee Thompson,
and James E. Smith. Associated with
Mr.. Lyons were to be George P. Barse,
attorney, who has handled the litiga-
ticn concerning the bank, and probably
other members of the staff of the con-
troller's Office.
Both Parties Silent.
Neither Col. Cooper nor Charm
would disclose their plans this morning.
Both expressed hope something con-
structlve would come out of the meet
ing. The Treasury has invited both
Col. Cooper and the depoSitors TO pre-
sent any plans they have for reorgani-
zation or other disposition of the bank.
The conference follows final decree,
filed yesterday by Justice Jennings Bal
ley in District Supreme Court, dis
missing Col. Cooper's bill, which asked
that the Treasury be forced to adopt
reorganization plan of Cooper's which
had been rejected. Having lost this
first court battle Cooper has turned TO
the Court of Appeals, but in the mean
time is ready to negotiate on the basis
OF some new plan. If successful, he
would dismiss the appeal.
Discretion Abuse Denied.
Justice Bailey. in his findings Of fact
in the Cooper case. explained how. on
the basis of evidence presented. the
court concluded that the controller Of
the currency had not been arbitrary
nor capricious in the use of discretion
granted him under law.
The court upheld the controller in re-
jecting the plan submitted September
l8 by Col. Cooper and in explaining
a few OF the outstanding points at
issue in the case made the following
statements:
The controller also adopted the pol
icy that where bank had been placed
in conservatorship it could be reor-
ganized and reopened only upon the
same basis as to assets and condition
as new bank might be opened. that is
to say, that only the prime and liquid,
or acceptable assets. and assets of un-
certain value must be charged out of
the bank, and that such unacceptable
asests should be placed in trust or dis
posed.of either for the benefit of credi-
tors who might waive portions of their
claims or otherwise. as provided by the
plan OF reorganization. The court finds
that the aforesaid policies adopted by
the controller are not arbitrary or ca
PRECIOUS or in abuse of the discretion
vested in him by law, and that the
United States Savings Bank was not
Disseminated against nor treated any
differently from other banks In the ap-
plication Of said policies"