Evening star., 1933-06-15
COMMITTEE PLANS
To FORM NEW BANK
FOR PARK SAVINGS
Body Also Considering Plan
for Branch of Hamilton
National.
NEGOTIATIONS ARE BEGUN
WITH OFFICIALS HERE
Frank J. Sobotka in Parleys at
Treasury on Subject-Re-
ceivership Discussed.

OF the Park Savings Bank has been
launched by Frank J. Sobotka past
president Of the Columbia Heights
Business Mems Association, who has
been in series of conferences with
Treasury Department officials on the
matter.
Final plans have not yet been
evolved, but Mr. Sobotka has appointed
committee representing many diff
ferent groups, of stockholders, deposi-
tors, business men and others from Co.
lumbia Heights, with view to "re-
establishing bank in the best posi-
BILE way"
While some sentiment In the sec
ton, he said, favors q community bank,
to open Independent of any other bank
ing institution, Mr. Sobotka feels that
it would be so much more difficult to
raise sufficient funds to start a new
plan is to work toward the possibility
OF establishing there a branch of the
proposed new Hamilton National Bank
No Commitments Made.
Preliminary negotiations looking to
this end have already been started
Treasury officials and Edwin c. Gra-
ham, president Of the proposed Hamil-
ton National, have conferred with the
Sobotka Committee, but nothing def
mite yet has been developed, in the
way of terms, or specific commitments
The Sobotka Committee SO far In
cludes w. Joseph Neale, attorney, for
merly of the Department of Justice. who
is member Of the committee recently
formed at meeting Of depositors of the
Park Savings Bank at the Central High
School; Joseph w. Kinghorne, business
man; Harry Davis, president of the
Diamond Taxicab Co.; DR.. Wade At
kinson. physician; A. r. Swan, presi-
Mems Association; A. Guy Reber. busi-
rcss man, and DR.. Harvey Baker
S-l.th. pastor of Columbia Heights
C'1ristisn Church. Other names are
bang added to the committee by Chair
nlon Sobotka.
Among the difficulties in the way of
c. ,Grizing a new national bank to re-
op-l alone, Mr.. Sobotka said today,
would be the necessity Of raising cap
itel structure of $4,000, of which
$500 900 would be capital stock and
$4,000 would be surplus. While no
6shlite allotment of stock has been
made as requirement for the new Co.
lunb.a Heights bank to become men,
Der of the Hamilton National Bank, an
informal estimate has been placed at
between $4,000 and 500 900 worth of
the Hamilton stock, which sells at s25
q share, with par value Of $40.
Want Branch Started.
With depositors and stockholders still
in the dark as to just what they may
appears to Mr.. Sobotka that the most
practical thing to do would be to try
to get branch established which could
get into the Hamilton merger.
The Park Savings Bank has about
$4,000 depositors, with deposits now
estimated to be around $4,000 900, as
contrasted to the 100000 reported by
the ba,k management as of December
81, 1852.
Owing to the trouble which the Park
Savings Bank failure has caused the
community Of Columbia Heights, Mr..
Sobotka said there was a persistent de-
mand there to have something definite
done to clear up the situation.
The most definite thing which can
be done in the immediate future, he
feels. would be to have the bank thrown
into receivership so that legal settle
ment could be made OF claims. Under
the present management, with a con-
servator in charge, it was explained,
the claim situation Of the involved
affairs Of the Park bank could not be
sufficiently cleared up. conServator
Is not authorized by law to put de-
positors and debtors Of the bank under
oath for settlement.
Has Acted as Receiver.
A receiver does have such authority.
j. L. Bailey, the present conservator,
has acted as receiver of other banks,
and If the bank were put in the hands
of a receiver it is likely he might con-
tinue. The Treasury, however, could
appoint another receiver. That point
Is still indefinite.
would not force the bank into receiver
ship unless there were sufficient de-
mand for 1t among the depositors and
stockholders of the bank. Mr.. Sobotka
saws his committee is Of the opinion
that the next step to take would be tc
ask for a receiver. He thinks there
is sufficient sentiment in Columbia
Heights to ask for this, although ne
realizes there is a sentiment in favor
of trying to establish a community
bank.
Another committee appointed by
mass meeting of depositorS at Centra
High School Monday night has beer
authorized to go forward with authority
to do what 1t can for the interests ol
depositorS. Members of both group!
have conferred with each other on the
whole situation, Sobotka said.
Would Clear Up Situation.
Under Treasury regulations. if re
ceiyer wee appointed, he could adver
tise for claims to be filed within 81
days. and could take legal steps, bind
ing depositors and debtors under oath
to clear up the situation. He wouit
probably be able to pay the first divid
endend to depositorS some time afte
60 days He would have an Office Il
the bank, but II the new bank wer
organized as a branch of the Hamil
ton National, the new branch coui
open fer business and the receiver con
tinue in part of the same building I
liouidate the assets Of the old instltu
ton.
Any proceedings which may be inst
tuted by the District attorney, base
on a Department of Justice report o
the bank, would not interfere with Tn
proposal to start a new branch
the Hamilton Bank at the Park locs
ton, 1t was officially explained. Sim
liar procedure has been carried oil
in other parts of the country. I'll
Treasury Department and Departmer
Of Justice cooperate in such instance
The Department of Justice report o
the rank, where Robert F. StunZ acti,
/ heaa of the institution killed himsel
Is IN the hands Of District Attorne
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