Evening star., 1934-04-25
EFFORTSC0NT|NUE
PEN0NE BANK
Treasury Department Still
Pushes Plans for Only
CoI0red Bank.

Out of the 13 Washington banks
which failed to reopen after the Presi-
dents bank holiday in March, 1898,
the Treasury Department still is en-
deavoring to reopen only one more
the Industrial Savings Bank, the lone
colored bank in the city.
A plan was prepared which would
have established a new bank, to be
known as the Industrial Bank, operat-
ing at the same location. Eleventh and
U streets. Stock was sold, and efforts
still are being made to establish the
rev institution. 1t would make avail
able about 35 per cent of deposits in
the old bank.
Only three of the 13 banks have
failed as yet to pay a dividend to de-
positors-the Park Savings Bank, the
United States Savings Bank and the
Industrial Savings Bank The other
10 banks have paid dividends ranging
from 40 per cent to IS per cent to de-
positors, with prospects that they
probably will pay more later on.
Franklin Reopens.
The Franklin National Bank was
the most recent to throw open its
doors, resuming business Monday as a
branch of The City Bank of Wash
ington, formerly known as the Wash
ington Mechanics Savings Bank. The
City Bank made available 65 per cent
Of the deposits of the Franklin and
the assets representing the other 35
per cent have been thrown into the
Franklin Liquidating Trust for slow
liquidation.
The former Washington Mechanics
Savings Bank also absorbed the
Mount Vernon Savings Bank, at Ninth
street and Massachusetts avenue.
which is now headquarters of the City
Bank. The City Bank has now six
banking houses. The Mount Vernon
paid a first dividend of 40 per cent.
Six out of the 13 unlicensed banks
were merged into the new Hamilton
National Bank, which paid first divi-
dend of SO per cent for its member
banks. The assets representing the
remaining so per cent have been
placed in the hands of two receivers,
Who now are calling upon depositors
and other to prove their claims. Per-
sons who filed proofs of claim with
either the conservators of these seven
banks, or with the receivers, need not
file another proof of claim.
Other Dividends Far Off.
Advertisements being carried now
by receivers of some of these assets
are directed to persons who have
failed as yet to file their claims.
Some dividends will be paid in the
future, it is expected, to depoSitorS
out of the remaining assets, but this
probably will be in the distant future
Three of the unlicensed banks are
involved in litigation. The Park Saw
tngs Bank case, most complicated of
all, is before Justice Jesse G. Adkins
in District Supreme Court. The De-
positors' Committee and the receiver
are aligned together in an effort to
get out of the directors the complete
loss of more than s2,0000OO in this
institution. The loss was discovered
after Robert S. Stunz, vice president,
killed himself when the bank failed
to receive a license. This bank is in
the hands of a receiver
Col. Wade H. Cooper. president of
the United States Savings Bank, has
appealed to the District of Columbia
Court of Appeals from the adverse
decision of District Supreme Court in
an effort to force the Treasury to re-
open the United States Savings Bank
under Cooper plan. The court has
advanced the case for hearing, and is
expected to hear it some time about
the middle Of May. This bank is in
receivership and has paid no dividend
Directors Fight Receivership.
Directors of the Woodridge-L -Langdon
Savings and Commercial Bank, which
merged into the Hamilton National
Bank, have filed suit to force the
Treasury Department to return the
remaining assets of the savings bank
to a conservator. The Treasury re-
Gently put these assets into the hands
of receiver, but the directors are at
tempting to have them returned to
conservator, claiming Treasury rep
reSentative made promises of con-
servatorship.
The Chevy Chase Savings Bank was
the first of the 13 unlicensed banks to
reopen its doors-as a branch of
Riggs National Bank. It has paid a
IS per cent dividend, and remaining
assets are in the hands of a receiver
1t is understood the controller of
the currency plans to levy an assess
rnent against stockholders of all the
n yfrhnen ~,