Evening star., 1934-07-07
TOPPER CENT LEVY
MADE ON STOCKS
OF 5LOCAL BANKS
1900 Shareholders Ordered
to Pay Total of $780,
600 by 0'Connor.
FEDERAL AMERICAN,
s2,0OO,000, TOPS LIST
Receivers Authorized to Make
Collections by August l3
in Ruling Today.

Controller of the Currency J. F. T.
O'Connor today levied 100 per cent
assessment against more than 1900
stockholders in five District of Co.
lumbia banks for a total of $3,340,0 900
payable August 13.
In formal statement, the con-
troller announced the banks as fol-
lows:
Federal-American National Bank &
Trust Co., s2,oOo,Ooo assessment
against 642 stockholders.
District National Bank, 100000
assessment against 325 stockholders
Potomac Savings Bank, $4,000
assessment against 6S stockholders.
Northeast Savings Bank, 100000
against 1876 stockholders.
Seventh Street Savings Bank,
100000 assessment against 123
stockholders.
Receivers Will Act.
The controller instructed receivers
Of these institutions to make de-
mands upon shareholders for the as
seSSment.
Cary A. Hardee, receiver of the
Federal American, took immediate ac-
ton by publishing official notice In
The Evening Star. Norman R. Ham
ilton is receiver for the other four
banks whose stockholders are assessed
and maintains his Office in the old
District National Bank Building.
These five banks are among the
seven whose best assets were sold to
the new Hamilton National Bank
after they failed to reopen following
the Presidents bank holiday. Their
remaining assets are in the hands OF
receivers for liquidation.
The two banks, which sold assets
to the Hamilton National Bank and
whose stockholders have not yet been
assessed by the controller are the
Washington Savings Bank and the
Woodridge-Langdon Savings & Com
mercial Bank. No explanation was
Forthcoming from the Treasury as to
the reason.
Total of 1,343 Affected.
The total number of stockholders
who now will be proceeded against
by the two receivers is l,343. In ad-
dition to receiving notice through Off
cial notification in the press, these
stockholders later will receive from
officials a personal demand for pay
In his official statement explaining
the action taken the controller said:
"All assessments are payable Au-
gust 13, 1894. However, stockholders
may pay in four equal installments
of 25 per cent each on August 13,
September 10, October 13 and No.
vember 13, and the assessments bear
interest at the legal rate for the Dis
trict of Columbia from the maturity
thereof, August 13, 1884.
THE assessments levied against
stockholders by Controller of the
Currency O'Connor are being made
under the provisions of Section 5,l51
and 1924 of the revised statutes of
the United States.
These five local banks were found
insolvent at the time receivers were
appointed November l, 1888. Now
the controller finds that the assets
of each are insufficient to pay cred
itors in full The controllers de-
cision as to the necessity for and the
amount of an assessment is equivalent
of judicial determination of the
facts, which cannot be controverted
by any stockholder."
In his orders to Receiver Hardee of
the Federal the controller
directed that the assessment of 100
per cent be levied against stock held
or owned by stockholders at the time
of its failure"
Court Action Directed.
The controller directed the receiver
to take all necessary proceedings by
suit or otherwise to enforce to that
extent the said individual liability OF
the said shareholders
The stock of the Federal-American
is listed at $40 a share par value. The
100 per cent assessment means that
each holder of these shares will be
called upon to pay to the receiver $40
for each share he held.
The Federal American National
Bank & Trust Co. was the largest
of the banks which failed to reopen
at the close OF the bank holiday After
months of negotiations, the best as
sets Of this bank and the six others
were merged together into the Hamil-
ton National Bank.
so Cents Paid on Dollar.
When the Hamilton National Bank
opened in September it paid out to
depositors of the Federal American
and its six other member banks so
cents on the dollar. The remaining
assets of the old banks which did not
20 into the Hamilton Bank were
thrown into the hands Of receivers,
who are now proceeding to liquidate
these assets.
There was no indication today as
to when the depositors of the Federal
American or other banks which
merged into the Hamilton may expect
to receive another dividend from the
receivers. This will depend, it is
understood, upon the collections, and
will await the official order of the
Controller of the Currency before
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