Evening star., 1933-03-19
BANK DEPOS|TORS
BACK COL. COOPER
Plans He Outlines Indorsed
by 5000 at Unusual
Mass Meeting.
(Continued From First Page.)

CONTINUED From First Page)
stock Of the new bank, paying from 20
TO Is per cent Of the face value per
share. He suggested this new bank be
capitalized for $500,00 with surplus
Of $3.50 900. The new stock, he asserted,
woued not carry with it any liability on
the part of the holders.
Alternative Suggested.
As an alternative, he suggested that
the present bank and reduce the capital
from 81 100000 to $500,000, the deposi-
tors to take over and collect for their
benefit frozen assets to an amount equal
to the deposit surrendered.
The question Of whether, under the
law, the Controller of the Currency has
any authority to permit such action
was not settled.
Col. Cooper said the plan was the
product OF his "own fertile imagination"
He also said the present stockholders
would not be relieved of their liability
70 the depositors under a reorganiza-
on their deposits.
He predicted that within q few
months the stock in the new bank. if
the proposal should be carried out,
would double in value.
Resolutions Adopted.
This bank belongs to the depositors,"
he declared. The stockholders have
been wiped out. You will lose from
three to four million in forced liqmda-
ton. But If you follow me I believe we
VIII be able to pay off," The bank had
about $4,000 depoSitors.
ThA ~
clared, have received terrible treat
Qent" from those now in charge when
0ey went to the bank on business. A
resolution proposed by Col. Cooper and
urging that the receiver be asked 20
ShoW courtesy and consideration to the
customers Of the bank was adopted.
After Col. Cooper said he had been
denied access to the bank records, the
oeposltofs approved resolution call
Ing upon the Controller to take the
necessary steps to see that Col. Cooper
De gwen full and free access to the
records OF the bank, including the
names of depositors and their balances
TO assist him in reorganizing and re-
opening the institution. and that If it
be necessary to accomplish this purpose
ne remove the present receiver and an.
point q different one"
Another resolution adopted requested
cooperation by the Senate, the House,
the secretary OF the Treasury, the
controller and the receiver with Col.
cooper IN arranging an early reorgani-
Eation and reopening.
Withdrawal Record Read.
Still another resolution was passed
thanking the newspapers for their CO.
operation in presenting news of the
banks condition to the customers.
TO dispute charges he had withdrawn
large sums of money from the bank
shortly before it closed. Col. Cooper
read a record of his Withdrawals for
January and February. The total was
$52750. He said he had a balance in
his personal account of several thou
sand dollars, but did not know the
exact amount.
He said he had received one threat
enlng letter since the bank closed, and
that one woman had threatened to pull
his hair out. He also read several let
tiers expressing confidence in him. He
received a great many letters OF this
character. he said, and only a few
mean" ones. ,-
After he had read the commendatory
letters Col. Cooper discussed the value
OF friendship in a time of crisis 1T
Y like a golden cord stretching from
the human heart to the throne Of God"
he declared. He also quoted from
Shakespeare to illustrate his point.
Col. Cooper said that when he went
INTO the bank some three years ago 1t
was already in difficulties.
Series Of Setbacks.
Interest rates were reduced at that
time" he declared, "and we lost depos-
its on that account. Later, the fact
that we had borrowed from the Re-
construction Finance Corporation was
published and that led to more with
drawals. The closing of banks in Mich
agan and Maryland hurt us still more.
There came grand rush for cash
and I had to decide whether to stay
open or close the bank to protect those
depositors who were standing by us.
Il favored q moratorium on with
drawals and my board Of directors
finally consented. After this decision
had been reached a gentleman from
home one night while was entertain
ing friends" Col. Cooper said the fol-
lowing conversation ensued:
Il understand, Col. Cooper, that you
are about to declare moratorium in
your bank"
"Yes."
IT want you to promise me that you
will keep your bank wide open tomor-
row."
I'm sorry. but I must promise you
the exact opposite"
II you do, the controller will close
your bank In IS minutes
I'm sorry, but can't help 1t.
think 1t is the best thing to do"
Later that night, he said, he re-
ceived a call from the controller, and
went to a conference with him.
He quoted the controller as saying
he had promised the Clearing House
to close the bank If he declared the
moratorium.
You may open or close" the con-
troller said. according to Col. Cooper,
'but there can be no moratorium. You
may be right in your beliefs-I don't
know-but you are the only man in
town who favors such q moratorium"
Describes Banks Condition.
Col Cooper said he did not want to
be understood as criticizing the con-
troller, but that he believed a mora
torium would have acted as a shock
absorber.
When he left the bank, he said, there
was about 81 5000 in cash on hand
1T should still be there" he declared
He said the total Of deposits at closing
was about $4,000, 900, whereas they had
been $17,000,000 before the Withdrawals
started.
The carrying charges on the bank
building are too high, he said and
should be reduced under any reorgani-