Evening star., 1934-06-19
us. SAVINGS BANK
INCREASES FORCE
TO PAY DIVIDENDS
Rushes Preparations to Dis
tribute IS Per Cent
Before July !.
FORTHCOMING PAYMENT
is Definite STIMULUS
Announcement Revives Discus.
sion of Future of In
stitution.
The United States Savings Bank

The United States Savings Bank
was beehive of activity today as an
increased force of employees rushed
forward with preparations to pay the
dividend of IS per cent authorized by
the controller Of the currency to be
paid before July l.
Throughout the community in the
vicinity of Fourteenth and U streets
announcement of the forthcoming
dividend was welcomed with sighs of
relief and expressions of enthusiasm
at prospects Of the first actual cash
out OF the bank since 1t was closed
during the bank holiday in March of
last year.
Definite Stimulus Seen,
T. s. Grape, president of the Gen.
trail Business Mems Association and
chairman Of the Depositors' Commit
tee Of the bank. said that the forth
coming dividend payment already had
proved definite stimulus to the COM
munity. Businessmen, in the retail
and wholesale sections of the area
were making plans for use of their
capital. many of them to improve
their business. he said. The money
also will be a great relief, he ex-
planned. to many cases of distress in
the community, where people have
had money in the bank, but were
unable to get it and had become f.
nancially embarrassed.
The dividend announcement also
70
ture of the bank building and whether
any new bank may be established there
some time in the future. when all legal
difficulties may be cleared from the old
institution.
This discussion, however, was COM
plicated. and prospects for any new
bank were retarded by the determina-
ton Of Col Wade H. Cooper. president
OF the bank. to fight the Government
to the end in efforts to reopen the
bank. Col. Cooper was in conference
today with his counsel, w. Bissell
Thomas and John W. Staggers, pre-
pairing to appeal to the Supreme Court
Of the United States for a writ of
certiorari to bring up his case to the
highest tribunal after reverses in the
lower courts.
Controller Held Justified.
The Court of Appeals yesterday held
that the controller was justified In re-
fusing to approve the plan OF reor-
ganization which had been proposed
by Col Cooper and that the ruling of
the Supreme Court to that effect was
not In error.
In an offlcial statement Immediately
after the court decision yesterday. the
controller announced plans to pay the
dividend. He explained that the con-
troller had rejected the plan of Col.
Cooper on the grounds that it was
inequitable, and unfair to the de-
positors and creditors in that it pro-
posed that the depositors furnish new
capital for the bank from their de-
posits. whereas the controller took the
position that the depositors we're en-
titled to all of the assets for the pay-
ment of their claims, and that new
capital should be furnished by the
stockholders.
Termination of the litigation by
the opinion of the United States Court
OF Appeals" said the controller
statement. renders the way clear for
appropriate action to be taken by the
controller to afford relief to the de-
positors and creditors. and the con-
troller is now glad to be able to an
nounce that, while the litigation was
pending. arrangements we're consum-
mated for a maximum or capacity
loan from the Reconstruction Finance
Corporation for an amount of funds
Sufncient, with the collections now on
hand. to enable a cash dividend of 65
per cent to be paid to the depositors
and creditors.
Available by July 1.
1T Is expected that this dividend
Will be available for distribution not
later than July /, and it Is requested
mat all depositors and creditors who
nave not heretofore filed their claims
Win Carter B. Keene, the receiver,
proceed as soon as possible to do so,
In order that they may participate in
the dividend.
The controller was prepared last
September, at the time the LITIGATION
was filed, to pay a so per cent divi-
dend which represented the maxi
mum available at that time in view
OF the amount the Reconstruction
Finance Corporation was then ready
to loan upon the assets of the bank.
to supplement the available cash.
Since that time, due to Improvement
In conditions, 1t has become possible
to obtain a larger loan from the r.
F. c., and this increased loan, to-
gether with the moneys which have
been collected upon the assets In the
meantime. have made it practicable
to increase the dividend to IS per
cent. This represents the maximum
amount which can be paid at this
time, but it is expected that addi-
tional dividends will be paid from
time to time as the further liouidation