Evening star., 1934-08-12
SUIT HOLDS SALE
/. Of DISTRICT BANK
GROSSLY UNF AIR
81 Stockholders Ask Inlunc-
ton Against Collection
of 100OlO Levy.
FULL AND COMPLETE
ACCOUNTING SOUGHT
Hamilton, Evans, Hamilton Bank,
Controller 0'Connor and Sec
retary Dern Defendants.

| lNhlAOllhA ohilA was HA0No4l
TO the District Bank and grossly ad-
vantageous" to the Hamilton, 81
stockholders, owning more than half
the capital stock Of the District Bank,
yesterday filed suit in District Su-
preme Court for an injunction to pre-
vent collection of an assessment OF
100 per cent against them by o
Treasury receiver.
A full and complete accounting is
asked of the Transaction between the
two banks. and the charge Is made
that this accounting would show that
not only would the assessment be un-
necessary, but that all creditors could
be paid in full out Of the assets Of
the old District Bank.
The stockholders, represented by
| Attorney Leo A, Rover, former dis
trict attorney. include Robert N,
Harper, organizer and first president
| of the District Bank: John A. Man
| fuso, secretary of the Stockholders
Committee, and many others.
Defendants are Norman r. Ham,
| ilton, receiver of the District Bank;
Jushua A. Evans, jr., former presi-
dent, later conservator OF the District
Bank and now a vice president Of the
Hamilton National Bank: the Hamil-
ton National Bank itself, which was
formed out of a merger of seven un-
licensed banks here In the Capital;
Controller Of the Currency J. F. T.
O'Connor and Secretary Of War
George L. Dern.
Told Bank Was Solvent.
Representatives Of the Treasury De-
| partment were charged with having
told stockholders and officers OF the
District Bank, after It closed during
the Presidents bank holiday In
March, 1888, that the institution was
not insolvent. The bank was prom
/ ised an orderly and sympathetic
liquidation" the suit charges, and
then after the best assets Of the Dis
trict were sold 10 the Hamilton Bank,
the District was declared insolvent
and thrown into the hands of a re-
ceiver, who Is now attempting to coll
lect an assessment amounting to 100
per cent Of the stock held by all stock
holders.
The first installment Of this Is due
tomorrow, Many stockholders already
have paid.
More than $4,000 900 of quick as
sets were sold by the District TO the
Hamilton Bank, and the District. to-
gether with its stockholders, the suit
states, are entitled on its behalf and
for the benefit of its stockholders,
depoSitors and creditors to an ac-
counting from the Hamilton National
Bank for and Of the assets"
Charges that the contract OF sale
was grossly advantageous" TO the
Hamilton Bank were backed up by
allegations that certain Federal farm
loan bonds had increased in value
since the sale by about 20 per cent,
making profit of approximately
$l50,000 to the Hamilton Bank.
Other similar large profits could be
found by the accounting. 1t Is said.
Extravaganza Alleged.
Expenses Of both the conservator-
ship and receivership the bill charges,
we're expensive, exorbitant and ex-
| travagant."
Criticizing Joshua Evans, r., con-
servator Of the District, the suit COM
/ plains that since he was also vice
president Of the Hamilton Bank he
was not In position to assume even
a neutral or impartial attitude to-
ward the interests Of the District Ma
tional Bank, which had been COM
mitted to his care, much less to pro-
tect its interests at arms length, as
he was duty bound to do. against all
persons including the defendant con-
troller of the currency"
Secretary Dern Is made o defend
ant in the suit because of a deposit
of $7So. 900 for the Philippine Islands.
secured by Government bonds. The
bonds were sold to realize SUFFICIENT
to pay of this account in full, 100
per cent. while unsecured creditors,
such as depositors of the bank got
only SO per cent through the Ham
ilton National Bank, or the con-
servator.
Stockholders In Suit.
The stockhoIder plaintiffs are:
w. Bertrand Acker. 1917 Harvard
street; Frank L. Atwell, 5000 Tilden
street; Sydney M. Boher, Shippens-
burg, Pa; Brooks Bank e. Trust Co,
trustees, Sally Swayze Edwards, Tor
rington, Conn; George Claggett, 3711
Warren street; Jack s. Connolly, New
York City; Nelson H. Darton, Geo
logical Survey; Nelly 4. Fealey, Hotel
Lafayette; Nellie p. Foster, College
Park, Md; A. s. Gardiner, In
yestment Building; A. s. and
Mable M. Gardner, Investment Build
ing; James T. Gibbs, Evans Build
ing; Frederick L. Haller, 1929 Four
teenth street; Mary Edwards Hunt,
1921 New York avenue; J. w.
Hunt, 1921 New York avenue; Annie
E. Heider, 2945 Upton street: w.
Charles Heitmuller, e12 Jefferson
street; Robert N. Harper, Washington
Auditorium; William s. Hodges, Ma
tional Press Building; A. j. Heimback,
New York City; James F. Hottell, 1855
F street; Marjorie HorSfeld, Shippens-
burg, Pa; Katherine d. Hill, Ashe-
vile. N. c.: Glovie B. johnson, 9o1
Rhode Island avenue; Rufus o. Jones,
3435 Fourteenth street; Benjamin A.
johnson and Comdr. r. G. Jones,
Salisbury, Md: Carl H. Kadie, 1888
@ street; Charles w. King, Charles
W. Kiug & Son, Marshall L. King
and T. H. Kearney, all of Alexandria,
Va; Ada o. Leech, Kenesaw Apart
ments; Jessie Lee, Takoma Park, Mo;
George w. Lipscomb, District National
Bank Building: Mary E. Moore, Sails
bury, Nd; Sarah e. Mitchell. Sails
bury, Md; Nina Mackall, care r.
Mackall. Bethlehem, Pa; Ernest c.
Morris. 2728 Woodley place; Mr. and
Mrs. John A. ManfuSo, Chevy Chase.
Md: Frank r. Major. 1915 Sheppard
street; William Fl. Martin. r., Ta-
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