Evening star., 1933-10-09
JUDGE POSTPONES
j. s. SAVINGS PROBE
Treasury Department Given
20 Days in Which to
File Answer.

The court battle over the United
States Savings Bank today was ad-
vanced into the indefinite future by JUS
tice Jennings Bailey in District Supreme
Court.
The Treasury Department. six Of
whose officials are defendants in the
case of Col. Wade H. Cooper, president
of the bank. was given 20 days in which
to file an answer to the so-called sec
ond supplemental bill filed by Col.
Cooper.
In regard to Col Cooper's request for
an Injunction to prevent the Treasury
from selling assets Of the United States
Savings Bank, Justice Bailey held that
such an injunction would be unneces-
sary In view of the fact that no con-
tract could be consummated for disposi-
ton Of the assets without approval OF
the court.
No Objection Offered.
He, therefore, dismissed this petition,
with Col Cooper's counsel, w. Blssel
Thomas, interposing no objection.
The issue remaining revolves around
a plan to reopen the bank.
The Treasury and Col Cooper have
been at loggerheads over this issue since
March IA. when the United States
Savings Bank was denied a license to
reopen and was placed in the hands OF
a conservator, Wilbur H. Zepp. the
banks vice president Col. Cooper s1lc-
ceeded in preventing the merger OF the
United States Savings Bank into the
Hamilton National Bank when he went
to court and made such vigorous at
tack on the proposed sale OF assets OF
his bank to the Hamilton Bank tnat
the Treasury withdrew the proposal
and the United States Savings Bank
was dropped from the merger.
NEGOTIATIONS then followed between
Col. Cooper and the Treasury looking
toward the reopening of the bank alone,
but the Treasury would not approve
plan proposed by Col. Cooper, ana Col.
Cooper has refused to cooperate IN re,
opening the bank on a plan proposed
by the Treasury as an ALTERNATIVE
Three Actions Faced.
Col. Cooper, therefore, has virtually
three actions in the same case before
Justice Jennings Bailey, but the out
standing issue now to be heard IN
wolves Col Cooper's effort to force the
Treasury to accept his plan.
The Treasury Department Is repre-
sented by George P. Barse and Charles
Wainwright.
The two plans of the Treasury De-
partment on the one hand and Col.
Cooper on the other for reopening the
bank are somewhat similar, providing
for a waiver by depositors OF a certain
amount of their deposits for which they
would. receive participating certificates.
There is q big difference, however, be-
tween the two plans, principally on the
point involving stock in the reopened
bank. Col. Cooper wants to trustee
the present stock for the benefit OF the
depositors, the stock to be sold out II
necessary to pay depositors 100 per cent.
The Treasury Department objects to
this plan, claiming the present stock
holders would maintain control OF the
bank thereby without putting up any
new funds to restore the capital struc-
ture. The Treasury plan provides Tor
the surrender and cancellation OF all
present capital stock and the resale
Of this stock in the first place to the
present stockholders at q sum which
would be at least equally to the amount
that could be raised by a stock assess
ment, with the sale Of this new stock
also to depositors and the public.