Evening star., 1933-10-14
.DEPOS|T0RS OFFER
SAVINGS BANK PLAN
Chairman of Committee Says
Any Suggestion Should
Be SCrutinized.

Declaring it is improper to submit to
depositors of the United States Savings
Bank any plan for reopening the bank
while the question is a matter of litiga-
tion before the courts, the Depositors'
Committee of the bank has developed a
new plan, but will withhold it until
later
Theodore S. Grape, chairman of the
committee. explained the committee 5
position at meeting of the Central
Business Mems Association last night
The association later adopted a resolu-
ton approving of the committee pos
| ton.
While maintaining a conservative
attitude in the matter, Mr. Grape
plainly warned depositors to scrutinize
carefully the plan presented by Col.
Wade H. Cooper, president of the BANK,
for reopening.
Cites Ambiguous Clause.
When Mr.. Grape had called atten-
tion to one clause in the depositor's
agreements mailed out by Col. Cooper,
President Arthur Clarendon Smith, of
the Business Mems Association. openly
characterized the clause as weakening
the agreement, so as to enable the stock
holders and directors to change it at
will. Although the agreement ap-
parently offers IS per cent of deposits
/ to depositors, the clause could be so
interpreted to give the depositor less,
Mr.. Smith said.
A motion proposed to the association
would have urged that depositors re-
frain from signing the Cooper agree
ments, but this was not put to vote.
Col. Cooper was roundly criticized by
some speakers from the floor of the
meeting.
Reporting on the work of the De-
positors' Committee, Mr. Grape was
guarded in his language. and conserva-
tive in his statements but warned de-
positors to "scrutinize" any agreement
presented.
Plan Called "Workable."
The plan of his committee he char
acterized as workable" and said it
should reopen the bank on basis of
fairness and protection to all interests" ;"
but he declined to disclose it now.
Our committee since its selection on
October has been in almost constant
session." said Mr. Grape. From our
open to us, we have evolved definite,
concrete plan for the reopening Of the
bank, plan we are reasonably certain
would have the approval Of the Treas
ury Department. This plan will be sub
mitted to all interested parties at the
appropriate time"
"Col Cooper has met with the COM
mittee," Mr.. Grape said. This meet
ing was held in an attempt to work out
a compromise of the plan Col. Cooper
has proposed and mas asked the courts
to order approved by Treasury Depart
ment officials. 1t is understood Col.
Cooper declined to modify his proposal.
The Treasury Department holds Col.
Cooper's plan is not acceptable as 1t
placed the entire financial burden on
depositors. and has asked the court to
dismiss the suit.
Explanation Sent Out.
Following his announcement OF a
few days ago, Col. Cooper has mailed
to depositors an explanation OF his
plan, with a request for their approval
and waiver of immediate payment of a
portion of their deposits.
Under the terms of the proposed
waiver. depositors would authorize the
stockholders and directors of the bank
to change the announced plan as neces-
sary to meet the requirements of the
controller of the currency or for other
reason without such changes cancel
ing or annuling the depositors' agree
ments and without further reference to
them
The clause to which Mr.. Grape re-
ferred, and which was sharply scored
by other speakers at the meeting, reads
as follows:
I'm the event any changes in the
terms hereof are necessary to meet the
requirements of the controller of cur
rency or for other eason. you are here
by authorized to make such changes
without canceling or annuling this
agreement, which is to remain in force
notwithstanding such changes"