Evening star., 1935-06-04
SUIT SEEKS TO BAR
BANK ASSESSMENT
1000 Levy on Continental
Owners for Shares in
Commercial Hit.

SUIT IN enIoin Controller of the
Currency J. r. T. O'Connor from
collection Of 100 per cent assess
rent against stockholders of the
Continental Trust Co on the organi-
Yations 1000 shares in the CONNER
rial National Bank was filed in Dis
trict Supreme Court yesterday.
The plaintiffs at the same time
sought an injunction against an as
seSSment levied against Continental
stockholders by Receiver John F..
Moran on the basis of individual
stock ownings in the trust company.
The four Continental shareOwnerS
who, entered the suit protested favor
itism allegedly shown by O'Connor
to Commercial depositors to the detri-
ment of the Continental Trust Co.,
which was bought out by the now
closed Commercial in January, 1880.
Continentals purchase of the 1000
shares of Commercial stock the
plaintiffs declare illegal as done
without authority as an investment
by officers of the trust company.
Invalidation Is Asked.
Plaintiffs in yesterdays suit de-
mand invalidation of this stock
purchase. which has resulted in the
trust companys being listed as a
Commercial Bank Stockholder and
liable to that extent for the debts
OF the Commercial National.
OConnor ordered the 100 per cent
assessment against Continental stock
holders May 90, several months after
a similar assessment was levied on
Commercial stock. The total amount
which the controller seeks to collect
from Commercial holders is S400 1000.
In protesting the individual assess
ment. the suit contends that when
the Commercial Bank bought out the
trust company, the latter had sufficient
assets to pay all valid claims. This
eliminated necessity for an assess
ment. plaintiffs state.
The suit further states that the
solvency of the trust company at the
time of the sale precluded need for
substitution of a court receiver during
trial of the case to replace Moran.
Money Paid Out Attacked.
Moran. according to the plaintiffs,
has refused to bring suit to recover
moneys improperly paid out TO
satisfy invalid claims. Chief among
such claims. petitioners state, is debt
against the trust company originally
listed on the banks books as S2.600,-
600, but later scaled down by liquida-
ton to S66S000.
The debt" cOrresponded to the
amount of deposits in the trust COM
pany at the time of the sale. The
revised sum included S200.0C0 in in
terest charges.
The banks officials refused to cor
rect this error after it was brought
to their attention by the protest of the
trust company's directors. the suit
states
Plaintiffs in this connection allege
the trust company officers "colluded
and conspired" with officers of the
bank to continue this wrongful con-
suction of the contract by which the
trust company's assets were purchased
and to assess the interest charges in
stead of guarding the interests of the
trust company.
Debt Legitimate, Is Claim.
The suit claims money borrowed by
the trust company from four banks
to purchase the last block of 300 OF
the 1000 Commercial shares consti-
tutes an illegitimate debt. since the
lending banks knew the money was
to be used in purchasing the stock,
an allegedly illegal transaction.
1t was asserted this money was bor-
rowed at the direction of Wade H.
Cooper, then president of both insti-
tutions, now under indictment on a
charge of misapplying funds of the
Commercial Bank.
Attorney Frank S. Nesbitt filed the
suit on behalf of Leila S. Dunn, 1925
Glover driveway; Anne S. Callahan,
1901 University avenue; Agnes V.
Scott. 2400 Sixteenth street, and G.
T. Scott. 49l2 Quebec street O'Con-
nor, Moran and Robert T Baldwin,
Commercial Bank receiver, are named
defendants.