Evening star., 1933-05-04
FRANKLIN BANKS
OPENING PLANNED
Proposal Is Near Completion
for Submission to
Depositors.

OmciaS OF the Franklin National
Bank have practically completed a plan
for submission to the depositors which
they hope will be accepted and bring
about the reopening Of the bank at an
early date. it was learned today. The
plan, Of course, must also be accept
able to the Treasury Department and
it is stated at the Treasury that sew
eral conferences have already been held
and the details given consideration.
According to the plan, the Franklin
Nationals depositors will be asked to
agree to waive not more than 1913
per cent Of the deposits which they had
date on which the institution failed to
receive license to reopen. The balance
viii be made available for regular bank
ing transactions.
For the 33h per cent Of deposits
waived, all assets not accepted by the
reorganized bank will be trllsteed. Par
ticipating certificates for the amount
waived will be issued to the depoSitors,
these certificates to be paid off out of
the realization of assets as fast as they
become available.
Stock Purchase Asked.
The depositors will also be asked to
agree to purchase non-assessable pre-
ferred stock to be issued by the Frank
lin National Bank in an amount equal
to 6 per cent of each customers de-
posits in the bank on March IA. the
new stock to be issued in the name OF
each individual holder.
oil oo nf have
been approved by the Controller Of the
Currency, it is intended to reopen the
bank as soon as the waivers have been
agreed to by rs per cent of the depos-
itors in the bank, public and fiduciary
funds not entering into the contract.
To make the plan clearer, an example
Of a depositor who may have 81 ,00C
in the bank may be taken. This de-
pcsitor is to be asked to waive S333.33
which will be used in covering such
items as the Treasury may object to
being carried in with the banks regu-
lar assets, on account Of their present
deprecated values.
The other S666.66 becomes available
for 100 per cent use in the depositor's
checking account for the transaction
of any kind of banking business, with
the exception that $50 of this amount
would be used in the purchase OF the
new bank stock. The $50 Is per cent
of the original amount on deposit, the
intention being to make this stock
non -assessable
How long time the depositors viii
be given to decide on accepting the
Franklin Nationals offer has not beer
decided. It is understood, however
that the stockholders of the bank hav'
agreed to do more than their full share
in making the new proposal operative.
First to Draw Up Offer.
The Franklin National is l of onl!
4 of the 13 closed local banks to draw
up a definite offer for depositors to &C
upon in connection with reOpening
The other 3 are the Potomac Saving
Bank, the Northeast Savings Bank ant
Industrial Savings Bank.
The main office of the Franklin i
at Tenth street and Pennsylvania ave
nue., and the bank has maintained
branch on Connecticut avenue for sew
eral years From todays development!
it is evident that the banks Officials
are more anxious to reopen the insti
tuition as a unit bank than to entel
any possible merger with other insti
tutions.
John B. Cochran was president of tht
institution at the time that it wa
closed. The conservator is Thoma!
p. Hickman. Total deposits on tn,
controllers last call, December 81, 1882
were $4,026, ,258.25.