Evening star., 1933-08-12
.DEPOS|T0RS' REPLY
IN PARK BANK SUIT
FILED WITH COURT
Committee Denies Treasury
Receiver Has Legal Right
to Control Assets.
CHALLENGE VALIDITY
OF MORAN APPOINTMENT
Efforts Made to Collect ST, 100000
Shortage From Directors
and Stockholders.

Denying that the Treasury receiver
John F. Moran. had any legal right -
control the assets of the defunct Pm
Savings Bank, the Depositors Conn.,
tee late yesterday filed in the Spreme
Court OF the District of Columbia a
reply to the receivers answer.
The Depositors' Committee asked that
the issues raised in their reply be heard
along with the other issues in the sew
eral actions now before the court. The
treasury receiver has no right to take
til.e to the remaining assets, the de-
positors' reply states, because the bank.
unoer the provisions of the law of Ala
Dama under which it was incorporated.
had lost its charter as a corporation
on August 30, 1929. The Park Bank
on that date, the reply states, was
automatically and completely divested
OF all title. ownership and the control
over the property and assets thereto
Iore owned and possessed by it and the
Ute, ownership and possession thereof
became then vested in the then direc-
trustees"
Insolvency Denied.
Inc reply further explained that the
controller under the law must find that
certain conditions must exist before
ne could appoint a receiver. Under
the law the controller could only an
point a receiver, the reply says. for
the reason and to the same expense
as are provided in the laws of the
Uhlted states in respect to national
Danks. The plaintiffs say further on
thlS point that the Park Savings Bank
as corporation was not insolvent and
there was no findings or decision of the
controller of tho
the Park Savings Bank. as a corpora
tlon. was then insolvent, and that the
attempted appointment of the said
Moran as receiver. as alleged in said
answer, was invalid and illegal"
Inc plaintiffs further make the point
that the bank could not be included
under section 713 of the code of laws
OF the District Of Columbia because as
corporation, it did not have an Office
OF banking house in the District of
Columbia when Moran was appointed.
since the corporation itself had expired
IN 1929. The District of Columbia code
on this point gives the controller right
10 appoint receiver for corpora tions
organized by virtue of the laws of any
OF the States Of this Union, and having
an ONCE or banking house located
within the District of Columbia where
deposits or savings are received.
Seek to Collect Shortage
The Alabama law, which the de-
poSltorS are invoking in their efforts
to oust the Treasury receiver and re-
place him with receiver to be appoint
ed by the court, provides for the
hquidation of corporations whose
charters have expired.
In such cases, the law declares the
directors shall be trustees with full
power to settle the affairs of the cor
porat!on. Furthermore, the same law
makes these directors in their capacity
as llquldatlng trustees Jointly and sew
orally liable to its creditors and stock
holders to the extent of the property
which may come into their hands"
With these weapons, the Depositors'
Committee which is headed by Joseph
w. Thompson and represented by E.
Hilton Jackson and William E. Rich
ardson as counsel. is endeavoring to
collect from the directors and stock
holders the entire amount of the more
than sl,500,00O shortage discovered in
the bank after Robert Stunz committed
suicide on March IA. The depositors
are going after the directors as liquidat-
ing trustees and also after the directors
and stockholders as co-partnerS.