Evening star., 1933-09-07
|BA|LEY DOUBTFUL
| HEW|LL OK. BANK
| MERGER CONTRACT
Decision Hinges on Promise
of Job to U. S. Savings Con-
servator by Hamilton.
TRIAL ABRUPTLY HALTED
BY COURTS Statement
Ruling Nay Affect Seven 0the,
Banks and May Cause Delay
in Organization.
BULLETIN.

Justice Bailey today approved
seven Of the eight contracts be-
tween the Hamilton National Bank
and Its member banks. The eighth
the United States Savings Bank
probably viii be disapproved. the
court indicated earlier In the day.
Trial Of the Injunction suit against
merger Of the eight closed banks into
the Hamilton National Bank came to
sudden halt today when Justice Jen-
nings Bailey. sitting in Equity Court,
said he doubted II he could approve
one Of the merger contracts.
Justice Bailey, while not making .
final ruling, warned counsel that he
probably would not approve the United
States Savings Banks contract with the
new bank because the savings banks
conservator. Wilbur H. zepp, Was to be
. paid ofncial Of the Hamilton Bank.
The injunction suit was brought by
Wade II. Cooper, president Of the United
States Savings and owner Of Sc per
cent Of the banks stock.
In his statement from the bench
Justice Bailey said:
The court would be slow to approve
sale by . man In . position of trus-
tee Of assets in his charge to . cor
poration Of which he already is prac-
tically . salaried employe. I will not
make any ruling now, but I doubt very
much that such q contract can be ap-
proved: doubt very much whether
any further testimony viii be needed. VI
AfYument TemogroW.
The point viii be argued at 10 O'Clock
tomorrow morning. Roger j. White
ford. attorney for Edwin @. Graham
president OF the new bank, said that
he would argue that the, conservato1
is not as much trustee as IN agent
Of the controller Of the currency. and
that m Of his actions while conserva-
tor are really the actions Of the con-
servntor Is under bond to the controller
Whiteford said that II Justice Bailey
should adhere to his decision tomor-
row It would have the effect Of leaving
the United States Savings Bank out Of
the merger, but that IN his opinion the
rule would not apply to the seven other
banks, some Of whose conservators will
get Jobs In the new Hamilton, because
no objection has been raised in any
case expect the objection Of Col. Wade
II. Cooper In the case Of the United
States Savings Bank.
If this goes against U.s." Graham
said. at will simply mean that we viii
have to raise $4,000 capital somewhere
else"
Already Offered Job.
The statement Of the court followed
testimony BY Mr.. zepp that he already
had been offered the position as man
aser Of the branch Of the new larger
bank which would be created out of the
old United States Savings.
Examination of Zepp revealed that
two weeks before the decision was made
for the United States Savings to join
the Hamilton merger, w. Irving Shu-
man. Treasury od1cial In charge Of re-
organization Of banks In the District,
had said to him: 'Mr. Zepp, don't you
think 1t would be fine thing for you
to be sitting up there at Fourteenth
and o streets as vice president Of the
AAoAAAeOh. 6CpP CAPlaA4CQ 4lC tk1OuBL1t
Shunan was joking and that this state
ment had nothing to do with the deci-
sion to 60 In with the Hamilton.
About month ago, he testified, he
first learned that he had been chosen
as branch manager Of the United States
Savings for the Hamilton.
Informed by Waller.
He said he was informed of this by
Wilbur j. Waller, proposed Is vice pres
tdent and cashier Of the new bank
Waller told him the salary he would
receive, he said.
Shortly thereafter, Zepp testified, he
found that he was not on the board
Of directors Of the Hamilton and was 80
disappointed that he threatened to can
Gel the major portion Of his stock sub
scription Of las shares. Edwin G,
Graham, proposed president of the new
bank, called on him q. few DAYS later,
he testified, and said that they had al
ways counted on making him . director,
The stock subscription was not can
celed.
Earlier In his testimony, Zepp said
three attempts had been made to pro-
cure . List Of stockholders Of the bank
BY Col Cooper and that he had threat
ened to dismiss any clerk caught pre-
pairing such list for any one who was
not authorized to have 1t.
According to the present set-up Of