Evening star., 1933-11-04
DEPQS|T0RS PLAN
new COURT FIGHT
|NPARK BANK CASE
Will Present Amended Bill in
Effort to Collect Part
of Losses. =
REQUEST FOR ANOTHER
RECEIVER is REFUSED
Group Expected to Reassert Claim
Directors and Stockholders
Are Liable.

With the possibility of a court re-
Bank eliminated by court decision yes
terday, counsel for the Depositors' Com
mittee today prepared fresh assault
on the directors and stockholders of
the bank to collect from them under
Alabama law.
Justice Jesse C. Adkins in District
Supreme Court denied the depositors'
motion for appointment of court re-
Ceiver to replace the Treasury receiver
now in charge of the bank but he left
open the whole question of liability of
directors and stockholders for the losses
Of the institution. These losses. which
were estimated at about 81 600, 900 when
Robert S. Stunz, vice president, killed
himself March IA. now have mounted
to more than S2,OOO,OOO due to new
inventory and estimate of what the
remaining assets of the institution will
bring.
Formed Under Alabama Laws.
II Is the Alabama law upon which
$4,000 depositorS now rely in their e1-
forts to collect as much as possible OF
these losses from the stockholders and
I'LL cSlOlS. 4llC Udllh wac Sol1ALS0
under the laws of Alabama. Depositors.
through Attorneys E. Hilton jackson
and William E. Richardson, claim the
charter of the bank expired in 1929,
whereupon the directors became liquid
ating trustees of the bank, jointly and
severally liable for the assets in their
hands.
Both the Treasury Department.
through counsel for the controller, and
the court itself left open the right Of
depoSitors to collect as much as pos
sible from directors on this point. The
Treasury and directors had both con-
tested the depositors request for new
court receiver to supplant the Treasury
receiver.
Depositors' counsel indicated today
they would have their amended bill
prepared for presentation to the court
within few days. It is understood
they will reassert the liability of the
directors and stockholders, and prob
ably make a more specific charge.
Rating Report Disclosed.
At the last mass meeting of deposl-
tors, it was disclosed by William j.
Neale, member of the Depositors'
Committee. that reports from CONNER
the banks beard Of directors, showed
they we're worth at least sS,OOO,COO. It
is these men & against ,slag whom II the Iasx nsw
to make them pay out of their own
pockets for the losses of the bank.
Attempts have been made by the
Treasury receiver. John F. Moran. to
collect the 100 per cent assessment
levied on stock of the bank. but so far
little has been collected, it was dis
110 sy, &c
ment was called July 25. and stock
holders were given permission to pay
1t in quarterly installments before Sep
tember. October, November and Deem
ber /, without interest. The assessment
is on the capital stock of 100000. The
original capital stock of the bank was
$4,000, but this was doubled in 1928
by declaration Of stock dividend and
was approved by the State authorities
of Alabama.
Under Alabama law, the stock of the
Park Savings Bank carries no double
liability, but the controller of currency
through his receiver is attempting to
levy the assessment under his right to
Gauidate the bank as if it were a ma
tional bank. Moran is proceeding with
the regular liquidation of the Park
Bank as rapidly as possible.
Meantime the Reconstruction Finance
Corporation. through Counsel William
C. Fits, has promised the depositors a
complete list of the securities held as
collateral for loan to the bank.
Justice Adkins before announcing his
decision late yesterday. paid tribute to
counsel for all five parties to the suit.
"I never saw a case better prepared
nor better argued" he said.
In dismissing the motion for court
received, the court said this was done
not for discretionary reasons but for
lack of jurisdiction to make the appoint
ment.