Evening star., 1933-11-16
Controller 0'Connor Explains
Examiner'5 Report on
Witness Stand.
OBJECTION TO COOPER
-RE0PENING STRESSED
Depositors Would Be Required to
Restore Institution Under Pro-
pOSal, Says Official.

Insisting that the United States Saw
ingS Bank is insolvent Controller Of
the Currency J. F. T. O'Connor this
District Supreme Court to defend the
treasury Departments position in re-
fusing to allow the institution to re-
open under plan proposed by its
president, Col. Wade H. Cooper.
Explaining from a bank examiners
report that there was an absolute loss
of S306.000 in the bank, the controller
stock and surplus"
Even If calculation were to take
into consideration as acceptable all of
the slow assets of the bank amounting
to S235 ,188, the controller said: You
would still have an insolvent bank
Treasury's Objection.
The controller emphasized the Treas
ury's objection to the Cooper plan on
the point that the stockholders were
not required to supply any new capital
at the present time in order to re-
plenish the capital stock. Under
Cooper's plan, the controller empha-
sized, the depositors not only would be
required to bring the bank back to
solvency through a waiver, but to use
r.
Col. Cooper's attorneys, headed by w.
BiSsell Thomas attempted by their line
OF questioning to show that the Cooper
plan would eventually assure to de-
positors 100 cents on the dollar, but
Controller O'Connor would not concede
that this was possible
Withdrawals of money from the
United States Savings Bank were dis
closed by Controller O'Connor to have
taken place the day before the bank
closed. During the morning session
he said that Col Cooper had Withdrawn
enough to bring his deposit down from
S4,1O0 to about 81 500, but in the after
noon session the controller corrected
this to 81 800.
william R. DeLashmutt, vice presi-
dent of the United States Savings, had
been president of the Bank of Damas-
Gus, at Damascus, Nd, and this bank
withdrew from the United States Saw
ings Bank, fS4, 400, O'Connor said.
DeIashmutt later outside the court
room admitted this withdrawal, but ex-
planned that the Bank of Damascus had
left in the United States Savings Bank
an account of $4,000, which he said
was frozen there.
Debt Of Col Cooper.
Controller o'Connor also testified that
Col. Cooper, at the time of the report
made to the controller, owed the United
States Savings Bank $24, 900 or SIS, 900.
When asked by Counsel Thomas
whether he knew this had been paid
since, the controller said he did not
know 1t, but he supposed Col Cooper
would pay the bill.
During the close questioning by Col.
Cooper's counsel concerning the ques-
ton of whether Col Cooper's connection
with the Commercial National Bank,
now in the hands of receivers, had
anything to do with the Treasury con-
Sideration Of Col Cooper's plan for the
United States Savings, Controller
O'Connor said that the commercial con-
nection had nothing to do with 1t.
Objection had been raised to Col.
Wade H. Cooper, president of the
United States Savings Bank, In connec-
ton with his proposal Mr.. O'Connor
testified.
Questioned by Thomas as to whether
the controllers office could require in a
reopened bank personnel satisfactory to
the controllers Office and if a change
In this personnel could be required.
OConnor answered:
Eyes"
First some club or organizations
said they would draw out all Their
money if Col. Cooper continued as pres
ident Of the bank. A great many
anonymous letters came both to the
Office and my hotel I usually put such
anonymous letters in the waste-paper
basket"
Mr.. Thomas then asked the control
Ter If Col. Cooper's connection with
the inSolvent Commercial National
Bank had anything to do with this
point. The controller answer in the
negative,
Meanwhile, 1t was learned from
the controllers Office that two additional
closed banks in Washington which had
previously paid out first dividend to
depositors were taken over by receivers
today. Garry A. Hardee, receiver for
the Federal-American National Bank
6S Trust Co.. took over the remaining
assets from the old Chevy Chase Bank
conservator. The Chevy Chase was
purchased by the Riggs National Bank.
Whlch paid a substantial dividend
Norman Hamilton, receiver for the Dis
trict National Bank today took over
remaining assets of the Northeast Saw
ings Bank
The Federal-American, the District
National and the Northeast Savings
Banks are members of the Hamilton Ma
tional Bank, but the Hamilton Bank is
not affected in any way by the new
receiverships effective today