Evening star., 1933-05-07
SECOND D. C.BANK
| MOVES TO REOPEN
District National Outlines Re.
organization Basis to
Stockholders.
CONTINUED From First Page)

Continued From First Pase1
equal to one-half of the par yalue nj
their present holdings In the District
National Bank.
X. r. c. Would Take S500,OOO.
III Is assumed that as the Recon-
struction Finance Corporation will own
100000 preferred stock, 1t will be rep-
resented on the new board of directors
and 1t Is hoped that other banks which
nave not yet opened on a 100 per cent
basis will adopt similar plans which
may result In much larger institu-
ton through the merging Of interests
and the supplying Of such additional
capital as the enlarged organization
may require. Manifestly the manage
ment OF the new institution will be
CHOSEN by the stockholders"
In addition to Chairman Wells, the
other members Of the Reorganization
Committee are Robert NJ Harper, Jo-
seph P. Tumulty, Charles ]. Brand, E.
j. Murphy, Horace G. Smithy and
Charles C. Rogers, who are all stock
holders and directors in the present Dis
trict National Bank. Wharton z. Lester
10 COullScl lOT TIE COUlnlJCee.
On the date Of the Controller Of the
Currency's last bank call, December 81,
1882. the District National reported to-
tai deposits of s7,075.7l8.17. When the
institution failed to receive its Govern
ment license to reopen on March IA,
the bank had about 5000 depositors.
The main office is located at l406 G
street, and the bank has maintained
branches at 939 Ninth street and at
Connecticut avenue and K street
This was the second one Of Washing
tons l3 closed banking institutions TO
take steps during the last week toward
reopening, the Franklin National hav-
ing made a similar move. The Dis
tricts announcement indicates that the
new bank also would have a new name.
This matter, as well as the official per-
sonnel, would be decided by the board
of directors.
Treasury Continues Work.
Meantime, the Treasury Department
has continued its study of the whole
bank situation in the District Of Co
lumbia with a view to reopening banks
as soon as possible. Rights OF the de-
positors, 1t is understood, are being
given primary consideration.
Careful examinations have been
completed of every one of the IL closeo
banks. Reports on these examinatlons
are in the hands of experts OF the
Treasury Department. Personal con-
ferences have been held between Walter
j. Cummings, executive assistant to the
Secretary Of the Treasury, his AIDES
and conservators OF local panKs.
Serious study has been made by thc
~ mot nnlV M tine
individual banks which are closed. put
also of the entire picture Of the banK
situation in the District Of Columbia.
Several of the closed banks have
drawn up plans for reopening, some
have sold stock and others have pre-
pared plans for strengthening their cap
ital structure. If these banks can sue
ceed in providing a sufhcient capltai
structure to reopen as a part OF tne
general picture Of the bank situation.
and fit into the bank needs OF this
city, 1t is understood they would De
permitted to go ahead.
The Treasury has broad authority
under the act Of Congress, passed dur
ing the emergency giving the controller
of the currency virtually absolute con-
troll over all financial institutions in
the District of Columbia. At the same
time Il Is known TO be the policy OF
the Treasury Department to take into
consideration so far as possible the pro-
posals which originate voluntarily out
Of each of the closed banks. Evidently.
however they must not only be satls-
factory to the Treasury as regards the
individual bank itself but also salts
factory as a part of the general pic
ture of the financial situation In the
District of Columbia.
Other Problems Pressing.
Among the factors which apparently
have delayed consideration Of the Dis
/ trict Of Columbia banks Is the amount
| Of time officials have had to devote to
| trying to reopen banks in other parts
of the country. This idea presumably
was one of the outstanding reasons be-
hind the only oficial statement ever
issued from the office of Mr.. Cummings
| ment pointed to the fact. backed up by
statistics, that only 1912 per cent OF
/ the deposits Of this city were tied up in
the closed banks.
| Mr.. Cummings big waiting room on
! the first floor of the Treasury Depart
ment is filled almost to overfiowing all
: day long.
The assistance Of two of the Capitals
! leading trade bodies was offered to Mr.
Cummings yesterday in his efforts to
reopen banks and free deposits. A
delegation calling at the Treasury in
cluded Claude G. Owen, president of the
Board of Trade; Thomas P. Littlepage,
president of the Chamber of Commerce.
and Robert j. Cottrell, executive secre-
tary of the Trade Board
After the conference Mr.. Cummings
said they had offered to assist in what
ever way they could.
While it is known that some of the
local banks have shown a willingness
to go along with any general plan
agreed to, others have been resisting q
merger and wish to reopen under their
old names.
The 13 banks in the hands Of con-
servators virtually were closed on Fri
day night. March 3, just before the in
auguration. The Presidents famous
bank holiday order closing all institu-
tions In the country was issued the
next night. Twenty Washington banks
were licensed to reopen 100 per cent on
Tuesday. March IA. and 13 banks were
placed in the hands of conservators on
the same day. They have been yir-
tually closed since. doing only a re-
stricted business, such as making
change, giving access to safety deposit
vaults and handling so-called "baillee
accounts" for checking.
An order for the liquidation of the
insolvent Commercial National Bank
has come from Justice James M. Proc
tor OF the District Supreme Court off,
cially authorizing the receiver, Robert
z. Baldwin, to proceed and conclude
the req ivership and to sell assets of
the h-a.itution for the benefit Of its