Evening star., 1933-09-07

efforts to reopen the bank, closed by the
power, and how all of his efforts were
turned down by Treasury Department
of1icials.
Cooper's story, in brief form. a.
elected by questions from his attorney,
w. Bissell Thomas, Is Is follows:
Twenty-three years ago he came to
Washington and became president Of
the United States Savings Bank. He
omitted the dividend to stockholders the
first year % Is to get the bank on q
firm foundation, and thereafter, up to
1891. 1t had made 40 to 60 per cent
profit, and dividends Of 30 per cent had
been declared.
The effect of the closing of four banks
in Washington in July, 1892, however.
led to loss Of $400, 900 in deposits.
and another surge Of Withdrawals be-
gan late In February, 1888, 20 that the
bank was put on q 5 per cent with
drawal basis for checking accounts On
February 70. 1888. Then came the
national bank holiday, and when
Of the currency for banks to reopen, the
United States Savings was mot one Of
those licensed.
Never Got Werd - Reopen.
Cooper went to see L I. Chorpenning,
chief bank examiner Of the Fifth Fed
eral Reserve District and asked him
what he must do to open the bank.
Chorpenning told him that 1t would
take an additional sc, 900 to SIS, 900 in
assets. Cooper called Q meeting Of his
board Of directors, personally contrib
uted $50, 900 and secured contributions
from board members Of about $40, 900.
He took notes for these amounts to
Chorpenning.
Chorpenning did not object to the
notes. but told Cooper not to place
them In the banks assets until the next
morning. when Cooper would hear from
him. Cooper. however, never received
Acting Controller Of the Currency
omcial, and . series Of visits to him,
and Q series Of plans offered for the
reopening Of the bank were offered,
none Of them satisfactory to Await.
Await at times would make him tell
his plans to ". Irving Shuman and at
other times to walter J. Cummings.
shuman broached to Cooper the propo-
sition Of going tn On the merger which
would result In the formation Of the
Hamilton Bank. Cooper turned this
down. Then Shunan asked II be had
any objection II Wilbur H. Zepp and
william r. Delashmutt represented the
bank at conferences looking toward q
merger. Cooper's reply was that If they
did 20 1t would not be ct his invitation
or with his consent.
Zepp has been named conservator Of
the bank without reference to Cooper
during the veek-in which Cooper was
trying unsuccessfully TO ii1tsfyiev Await.
Hlsn Never Approved
Oooper's principal plan provided that
arraneements should b made to pay
depoeitors Immediately 66 per cent Of
their deposits; to take the banks worst
assets. representing IS per cent OF the
total. and trustee them" for the de-
ftmal dividends II and WhGn these as.
sets were realised. The stockholders
would not take any DIVIDENDS until the
depositofs had been paid 100 cents on
the dollar.
Cooper's plan, however, never met
Awaits approval. When he asked
Zepps permission 70 inspect the books
Of the bank 20 - to circularise the de-
positors about his plan. Zepp refused,
saying he had been instructed not to
give out list Of the depositors.
At one stage Of the negotiations with
the controllers ONCE Cooper was told
that IL would be necessary to re-ex-
anime his bank, although ~ aDets
when closed were practically the same
- ut the last previous examination,
about three months before the bank
holiday. The examination and writing
the eEaminers' report took ave weeks.