Evening star., 1934-07-15
Controller Files Answer to
Cooper Action as Liqui.
dation Proceeds.
TWO OTHER DIVIDENDS
THWARTED BY COOPER
Date of Payments of 65 Per Cent
to Depositors and Creditors
Some Time This Week.

Despite pending litigation. a divi-
dend of 65 per cent. amounting To
about $l,O00,0 600 will be paid TO de-
poSitorS and creditors of the United
States Savings Bank this week, 1t
was announced yesterday by Con-
troller of Currency j. F. T. O'Connor.
At the same time the controller
filed answer In District Supreme
Court to suit by Col. Wade II.
Cooper, former president of the bank,
who is still attempting to wrest con-
troll of the institution from the gov
ernment.
This will be the third time that
attempts have been made to pay
dividend. the other two having been
thwarted by Cooper. It was FIRST
planned to pay so per cent through
merging the savings bank into the pro-
posed Hamilton National Bank. Later
it was announced on June l8 that
a dividend of IS per cent would be
paid by July l..
Cooper went to court in both in
stances, and prevented payment of
the dividend, but the government,
filing its answer yesterday, laid plans
to go ahead this time despite pending
litigation.
ReOpening is Opposed.
In his answer, the controller, repre-
sented by George p. Barse. set forth
that the bank is not in condition to
reopen and that II should proceed
in receivership liquidation. Attached
to the answer we're extensive exhibits
including decisions in the District
Supreme Court and the Court Of
Appeals, in which Cooper lost his
fight to take back the bank from
the Treasury and force a re-opening
of the institution along Cooper plans.
The controller asks that these court
decisions be considered in the new
case.
Charging that Coopers bill OF COM
plant is bad in substance" the con-
troller declared that under law the
controller of the currency had exclu-
sive official administrative jurisdic-
ton, discretion and control, and that
the court lis precluded from review
ing or disturbing the findings and
acts" of the controller in the mat
ter
Taking up again the earnings of
the bank, the controller admitted that
prior to the middle Of 1892 the bank
had, a capital stock of 100000 and
surplus and undivided profits Of ap-
proximately $3.50, 900. The controller
further said that between 1927 and
1880, the bank earned. according TO
its books, from 40 to so per cent upon
its capital stock. but that for 1891
the bank sustained a net loss of
S8,256.64, and for 1882 a net loss OF
$38.200.59. The bank paid for the
years 1927 to 1881, inclusive, dividends
Of at least 80 per cent, he said, a
dividend Of 2612 per cent was paid
during 1882, when the bank suffered
loss.
Previous Decisions Binding.
Previous court decisions, the con-
troller claims, are binding on Cooper,
and because Of this he is precluded
from again raising the same issues.
In announcing the dividend, the
controller in his statement declared
"the depositors and creditors Of the
bank have been deprived of their
funds since the bank was closed in
March, 1888, and we feel very strongly
that their distress should be relieved
as soon as possible.
1T is expected that the clerical and
mechanical details necessary to hav-
ing the dividend money available can
be completed within the course OF the
next few days-certainly by the first
part of this coming week.
Postcards will be sent to the de-
positors notifying them of the date
to call at the bank for their dividend
checks. Please do not call prior TO
the date therein indicated, inasmuch
as 1t will be impossible to distribute
all Of the checks at once, and it will
be necessary to spread the distribu-
ton over a period of days"
No definite time has been set for
payment of the dividends. bat will be
announced later The money will not
be ready tomorrow, however, and de-
positors were asked not to call there.
as the bank staff will be busy getting
ready to pay as soon as possible.