Evening star., 1933-11-06
Secretary, Absent in New
York, Is Summoned Here
for Hearing Tomorrow.
SEVEN OTHER OFFICIALS
AND WRITER TO TESTIFY
Negotiations to Merge Franklin
Mechanics and Mt. Vernon
Banks Are Pushed.

the United States savings Bank, WHICH
comes before Justice Jennings Bailey ir
District Supreme Court tomorrow morn
ing.
The subpoenas are in the hands of &
United States marshal and attorneys fol
both the plaintiff, Col. Wade II. Cooper
president of the bank, and the various
Treasury officials are ready to proceed
with the trial. Secretary Woodin today
was in New York and it was understood
he had planned to stay there until after
the election tomorrow.
Meantime there were two other i'm
portant developments In the unlicensed
bank situation today, as negotiations
neared an agreement for merger Of the
Franklin National Bank with the Wash
ington Mechanics Savings Bank anc
the Mount Vernon Savings Bank. OF
further Importance also was the arrival
today Of Norman r. Hamilton Of Ports
mouth, Va, who will take over his new
duties as receiver for the District Ma
tional Bank tomorrow morning. Later
on he also is to become receiver for five
other unlicensed banks.
The United States Savings Bank
case is continuation of the fight
waged by Col. Cooper to prevent the
Treasury Department from forcing his
bank into the Hamilton National Bank
ana to make the Treasury reopen the
United States Savings Bank under the
Cooper plan.
the following persons: Secretary Woo
din, Walter j. Cummings, executive
assistant to the Treasury Secretary and
also chairman of the Federal Deposit
Insurance Corporation; Controller of
the Currency j. F. T. O'Connor, Gibbs
Lyons and F. G.. Await, deputy con-
trollers of the currency; w. r. Milford
head Of the reorganization division of
the controllers Office; Wilbur H. Zepp
conservator of the United States Sav-
ings Bank; william r. DeLashmutt,
assistant to Mr.. zepp. and Robert M
Buck Of the Washington Daily News.
Reopening Is Opposed.
The specific question before the court
In this hearing on the United States
Savings Bank is the request of Col
Cooper to force the Treasury Depart
the Cooper plan. This Is objected to
by the Treasury Department because
the Treasury claims the Cooper plan
is unfair to depositors. forcing the de-
positors not only to bring the bank
back to solvency, but also to recreate
at least part Of the capital structure.
The Treasury has submitted an alter
native plan which Col. Cooper has
firmly rejected.
Col. Cooper will contend, it Is under
stood, that he has met the original
requirements of the Treasury Depart
ment, and that under the law he should
be allowed to open the bank on the
Cooper plan. He succeeded In eliminat-
Ing the United States Savings Bank from
the proposed Hamilton merger when he
went to court claiming a conspiracy
TO DO him an injustice. No decision
was rendered by the court In this case,
but the Treasury Department formally
United States Bank with the Hamilton
and the case was continued before
Justice Bailey.
Col Cooper is to be represented BY
w. Bissell Thomas and John w. Stag
gers, while the Treasury officials are tc
be represented by George P. Barse anc
Charles e. Wainwright.
The possibility that the Franklin Ma.
tional Bank may join the already ap-
proved merger of the Mount Vernon
Savings Bank with the Washington
Mechanics Savings Bank today was be.
lieved to be nearer. Conferences be.
tween officials of the Washington Me.
chancs' and Franklin were under way
this morning. but those Immediately in
charge Of negotiations would not expires:
an opinion on the prospects. The Mount
Vernon and the Franklin National are
both unlicensed banks which have beer
on restricted basis since the banking
holiday, while the Washington Me.
chanics' Savings Bank has never beer
restricted. Should the Franklin joir
the Washington Mechanics Savings II
is predicted that the total deposits oi
the combined institutions would prob
ably be somewhere between S3,000,0 ,00C
and s4,ooo,ooo.
Stock Sale Progressive.
The Washington Mechanics ALREADY
has four banking houses of its owr
and plans to use the Mount Vernon
site at Ninth street and Massachusetts
avenue for headquarters. Sale of stock
In the enlarged Mechanics Bank was
reported today to be progressing rapidly
as 100000 worth is offered jointly by
both institutions. The Mount Vernon
Bank Is receiving from its depositors 8
flood Of agreements which will bring tC
the depositors 40 per cent Of their de.
posts when the merger is affected. TIL,
other so per cent is being waived ant
assets representing that are to be place.
in the hands Of three trustees servin,
without compensation.
Arrival Of Mr.. Hamilton as q receive
TO take over assets Of six unlicensed
banks was the latest development il
the administrations program for liqui
dating the remaining assets of certain
banks here under receivership. To
morrow morning Mr. Hamilton will taxi
over first the receivership of the Dis
trict National Bank and will set vi
headquarters there for liquidating th
other five banks which he Is to admin
lister. They are: Northeast Savings
Seventh Street Savings, Washington
Savings. Woodbridge -Langdon Savings &
Commercial and the Potomac Saving
Bank.
Mr.. Hamilton said he plans to liqui
date the assets of the six banks unde
his jurisdiction, to collect as rnucl
money as possible for the depositor.
He could make no prediction as to tn
possibility of stock assessment on tn
stockholders Of these banks, but sal
be would be guided by the rules an
regulations Of the Treasury Department
Meantime, Cary A. Hardee, forme
Governor Of Florida, who has taken owe
the receiverShip of the Federal-Ameri
can National Bank g. Trust Co., said to
day his principal responsibilities at th
present were to change the bookkeepin
set-up from that of conservatorshi
to a receivership. He said he had nc
yet reached the question of a stoc
assessment. He has not yet taken owe
the remaining assets In the old Chev
Chase Savings Bank, but will do s
later and probably will administer ther
from the downtown office, at Fifteent
and H streets, where he Is now liqul
dating the old Federal-American.