Evening star., 1934-10-05
Northeast Savings and Sew.
enth Street Savings
Named by Hamilton.
rs AND 80 PER CENT
TO GO TO DEPOSITORS
Controller 0'Connor and R. F. C.
Head Announce Move to Close
"Tail.end Receiverships."

Plans for paying out more than
$500. 900 in an additional Is per cent
dividend to depositors of the North
east Savings Bank and 80 per cent
dividend to depositors of the Seventh
Street Savings Bank were announced
today by Receiver Norman R. Hamil-
ton as Controller of the Currency
O'Connor and Chairman Jesse Jones
of the Reconstruction Finance Corp.
developed a new plan for closing out
"tail-end receiverShipS" OF banks
throughout the country.
The exact dates for payment OF the
two dividends have not yet been Ge-
termined, but probably will Re an
nounced within a few days. Deposi-
tors in both Of these banks received
so per cent dividend, paid about a
year ago.
I9 Banks Unaffected.
The new so-called OConnor- Jones
plan for closing out receiverships will
not affect any of the l9 banks in re-
ceivership in the District OF Columbia
al Lie plCSCIll ~ SOllAlOA Ca
planned. He intimated. however, that
much later on the plan might be ap-
piled to what was left Of the smaller
banks.
The second dividend will be well
coined by depositors in two different
parts of the city and will pay out a
total of S586,276 The checks will be
made available at the banks them
selves and not at the Office Of the re-
ceivers in downtown Washington.
Receiver Hamilton, in a statement,
announced that these two new divi-
dends, in addition to a second divi-
dend, still being paid to depositors of
the Washington Savings Bank, brings
the total amount of second liquidating
dividend payments to banks closed
after the Presidents holiday here .up
to s659, 9,o95. This, he explained, Is in
addition to dividends of so per cent
already paid to 1852 depositors in
these three institutions. It brings the
total received or shortly to be re-
ceived by them to sl,907, ,457 out of a
total OF the entire deposit liability at
the time of closing of $2,4s6,72
Administered Efficiently.
Receiver Hamilton declared these
figures will be interpreted as showing
closed banks in this city ARE being
administered efficiently and effectively
in the interests Of depositors. under
the direction Of Controller O'Connor. :"
The O'Connor- Jones plan, disclosed
for the first time late yesterday, is
designed, O'Connor said, to wind up
the tail ends" of receiverships SO as
to give the depositors as much as pos
Sible from the last remaining assets.
The plan, OConnor explained, will
be placed in operation on somewhere
between 800 and 4co banks in receiv-
ership, each of which has left over
tail-end assets amounting to less than
$4,000. The first step would be a
loan to the receiver from the Recon-
struction Finance Corp. for as much
as the r. F. c. could loan under pro-
visions of new banking laws.
Option of Depositors.
The r. F. c. would take possession
of the assets. The next step would be
optional with the depositors of the
bank, Mr.. O'Connor emphasized. If
the depositors desired. they would
then be sold the entire remaining
assets for nominal sum, say for in
stance, 81. The r. F. c. would still
retain possession physically of the
assets until the depositors could sell
them on the open market for sufficient
to reimburse the r. F. C. for its loan.
The depositors then would gain COM
plete possession of the assets and take
them out Of the hands of the Govern
ment, enabling the receivership to be
terminated Meantime, the receivers
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