Evening star., 1934-02-15
Commercial National Ex-
Presidents indictment
Given as Factor.
DEPOSITORS ENTITLED
TO MONEY, is PLEA
Memorandum Says Liquidation
Is Proper Legal Step, Since
Assets Are in Trust for Them,

Indictment of Col Wade H Cooper
for alleged nisapplication of funds in
the Commercial National Bank. Of
which he formerly was president, was
cited today by the Treasury Depart
ment in the Court of Appeals as one
of the reasons why the bank was
thrown into the hands of a receiver
and should be iquidated without
delay.
This was set forth in the Treasury's
memorandum in opposition TO Col
Cooper's motion to hold up liquidation
of the bank until after determination
Of the pending case involving the
United States Savings Bank, which
Cooper also headed.
The memorandum filed by Attor-
neys George P. Barse and Charles E.
Wainwright. maintained that the
Treasury was within its rights in
throwing the Commercial Bank into
receivership and that the depositors
should no longer be deprived of their
money. The indictment of Cooper
was linked into the United States
Savings Bank case for the first time
official in the new memorandum.
which as filed yesterday.
Injunction Plea Rejected.
After outlining the facts in the
case concerning conservatorship. the
memorandum declared the District
Supreme Court already had rejected
Cooper's appeal for an injunction to
force the Treasury to reopen the
bank under the Cooper plan, but the
controller indicated he was willing
to consider such further plans for
the reorganization or reopening of
said bank as appellant might care to
submit
Some negotiations were thereafter
had in that respect continued the
memorandum. although without sub
stantial progress being made toward
solution, and during the course
of said negotiations in the early part
of January, 1884, certain indictments
were returned by the grand jury of
the Supreme Court Of the District Of
Columbia against appellant, con-
corning his conduct while president
of the Commercial National Bank of
this city. '.t-.s -.t..
The controller held the affairs of
the bank in status quo for about a
month after the return of the indict-
mentS and then decided that the fact
of continued pendency of said indict-
ments and the uncertainty as to the
time of their ultimate disposition IRE
gardless of the merits of the charges
therein contained), rendered it i'm
practicable to consider for the imme-
diate future any plans of reorganiza-
ton which would embrace the con-
nection of appellant with the bank if
reopened, and that it would be an in
justice to the depositors and creditors,
who have already been deprived of
their funds for almost a year, to con-
tinue to withhold their funds when
the prospect Of reorganization ap-
peared to be so uncertain and indefi-
mite. If not entirely improbable.
Would Settle Status.
Consequently. in view of this sit
of the bank and of other factors,
the controller determined, under the
authority and discretion vested in
him by law that it would be for the
best interests Of the depositors and
creditors, and in the public interest,
to abandon further thought of re-
organization of said bank. and that
the bank should be placed in re-
ceivership, and its status settled in
so far as the situation permitted, in
order that appropriate steps could
be taken toward raising funds from
the assets of the bank to pay divi-
dend to the depositors as soon as pos
Able and SO that customary precau-
tions and action could be pursued
to protect and liquidate the assets by
collection, soon or otherwise"
Declaring that to grant Cooper S
motion to stay liquidation would
work substantial injustice" upon the
unpaid depositors and creditors, the
Treasury memorandum said:
The appellant does not own the
assets of this bank They are trust
for the depoSitors and are equitably
owned by them until their claims
are paid in full The stockholders
are entitled to share in the assets of
said bank only, if and when the de-
positors and creditors have been paid
In full. Appellant can have no
equitable ground for asking this court
to hold up the distribution of the
assets of said bank to the depositors
and creditors"