Evening star., 1933-10-04
PROGRESS IS MADE
ON NFRANKL|N BANK
REOPEN|NG PLANS
Report Follows Merger of
Washington Mechanics,
Mt. Vernon Savings.
MAI. SHUMAN LEAVES
FOR GUARANTEE POST
Controllers Aide in Unifcations
Goes to Chicago-Cooper's
Case Is Postponed.

Substantial progress toward reopen
ing the Franklin National Bank was
reported today at the Treasury this
development coming close on the heels
of the announcement late yesterday OF
a merger of the Mount Vernon Savings
Bank into the Washington Mechanics
Savings Bank, with Ezra Gould. presi-
dent Of the latter, as head OF the en-
larged institution.
These important moves in the bank
ing situation here came as Maj. w. Irv-
ing Shuman of the Treasury Depart
ment, who has had major part in
clearing up the bank situation here,
resigned to leave for Chicago.
Maj. Shuman leaves his post as spe-
cial representative of the controller OF
the currency to be affiliated with the
new Federal Deposit Insurance Cor
poration which handles the procedure
Of the new law relating to guarantee Of
bank deposits. He has been assigned to
the Chicago Office Of this corporation.
Aided in Mergers.
As representative of the controller of
the currency, Maj. Shuman has been
credited with a principal part in the
bank reorganization movement in the
District. He represented the Govern
ment in organization Of the Hamilton
National Bank and Just before leaving
participated in arrangements for the
new Mount Vernon-Mechanics merger
and negotiations looking to rcopening
of the Franklin National Bank.
He also appeared in court this morn
ing as one Of the defendants in the
United States Savings Bank case. which
was postponed until next Monday. In
this case, Col Wade H. Cooper. prest-
dent of the United States Savings who
previously had succeeded in having his
bank dropped from the Hamilton
merger, is trying to force the Treasury
to reopen the bank along lines OF his
own proposed plan. The Treasury mas
rejected his plan.
Depositors Of the United States saw
ings Bank are holding mass meeting
at g o'clock tonight at Central High
School auditorium, where a Deposit
tors Committee is to be named to try
to get the bank open as quickly as pos
sible.
The Mount Vernon-Mechanics bank
merger is virtually purchase by the
latter of the prime assets Of the for
mer, in order to make available to de-
positors between IS and 40 per cent OF
their deposits. The capital stock OF
the Mechanics is to be enlarged by
100000. Frank w. Lee, president OF
the Mount Vernon. is to be vice pres
ident of the enlarged Washington
Mechanics Savings.
Terms Announced.
A statement outlining the terms of
the merger SO far agreed to was made
public jointly by Gould and Lee.
They stated that IAN agreement had
been reached with the Reorganization
Committee Of the Mount Vernon Saw
ings Bank and approved by the con-
troller of the currency whereby the di-
rectors Of the latter bank would sell
and transfer a certain percentage OF
the good and liquid assets Of the bank
to the Washington Mechanics Savings
Bank and that an equal amount OF
deposits of the Mount Vernon Savings
Bank would be made available to the
6epositors of the Mount Vernon Saw
ings Bank through the Washington
Mechanics Savings Bank.
For the purpose of restoring the
Mount Vernon Savings Bank to its
directors for transfer to the Washing
ton Mechanics Savings Bank" contin-
ued the statement, "it will be neces-
sary for waivers to be signed by IS
rAr cent of the depositors for an amount
estimated as necessary to restore the
bank to solvency without provision be-
ing made for its recapitalization.
"Under the terms Of the agreement,
It will be possible to make available
for depositors Of the Mount Vernon
Savings Bank at date Of opening as
branch of the Washington Mechanics
Savings Bank. an amount equal to IS
per cent to 40 per cent Of the present
deposits of the Mount Vernon Savings
ha
of deposits to he made available at
date of opening is determined. the
balance of the assets will be placed in
the hands of trustees who will be ap-
proved by the Treasury Department for
the purpose of handling the remaining
assets of the Mount Vernon Savings
Bank, for the benefit Of the depositors.
After these assets are liquidated, fur
ther amount will be paid by the trustees
to the depositors.
Details Incomplete.
MANY details are to be worked out
in connection with the agreement which
has been entered into with the Re-
organization Committee OF the Mount
Vernon Savings Bank and the directors
of the Washington Mechanics Savings
Bank.
These details include an increase In
capital stock of 100000. which will be
necessary due to the increased volume
of business added to the Washington
Mechanics Savings Bank through the
acquired business of the Mount Vernon
Savings Bank.
"The total amount Of deposits to be
released will amount to from $780,
to 5000, 900, depending upon the exact
percentage of release, yet to be de-
termined.
"Other questions concerning person.
mel of the new Office of the washington
Mechanics Savings Bank, which will
be located at Ninth Street and Mount
Vernon place, (the Mount Vernon
Bank, and other forms and details
necessary for carrying into effect the
consolidation of interests will be de-
termined today"