Evening star., 1935-05-18
New Release to Be Rushed
After Approval of R. F. c.
. Loan.
REPORTS OF S0LVENCY
DECLARED INCORRECT
Assets Value of $1,131, ,s92.64
Cited in Analysis Held Liquida-
ton Figure.

The United States Savings Bank,
Of which Col. Wade H. Cooper was
president, will pay another Is per cent
dividend to depositors soon.
This was indicated in an official
statement by the ONCE Of Controller
of the Currency, which did not say,
however, when the payment would be
ready.
Application was made to the Re-
construction Finance Corporation May
Is, 1t was explained, for a further loan
with view to making the additional
dividend. Depositors already have re-
ceived 65 per cent from this bank.
Payment OF the new dividend. the
statement said. will be expedited as
much as possible after approval of the
r. F. C. loan, in view of the fact q
suit now is pending in the courts to
terminate the receivership proceed
ings."
Col. Cooper recently collapsed in
court during case involving the
Commercial National Bank, of which
he also was president, and now Is in
Garfield Hospital.
Solvency Report Denied.
Contrary to reports published else
where yesterday, the United States
Savings Bank cannot be considered
solvent, according to an analysis Of
the last statement of condition Of
the bank, made by the office Of the
controller yesterday.
THE report shows an estimated
value of the remaining assets of ST.
13l, ,992 64," said the controllers ex-
PLANTATION. However, the foot note
in explanation of this estimate states
that the same represents the re-
ceiver's present estimate of the ulti-
mate liquidation value Of the items
and that said values are not guaran-
teed either by the receiver or by
the controller and that they should
not be accepted as final either as a
basis of prospective dividends or
otherwise and that said assets include
those which have been pledged for
repayment Of secured liabilities, which
in this case would include the out
standing liability Of the Reconstruc-
ton Finance Corporation loan OBJ
tained for the purpose of paying the
first dividend of 65 per cent. It
further should be borne in mind that
the assets so valued include sub
stantial quantity which have previ-
ously been classified as unacceptable
from the standpoint of the possible
reopening of the bank, this claSsif1-
cation having heretofore been settled
by litigation.
Attention Is further called to the
fact that the report shows total out
standing deposit liabilities amounting
to S6s2,02723. The unpaid amount
Of the Reconstruction Finance Corp.
loan as of March 81, 1885, was s674,-
500, to which must be added interest
accrued as of that time Of $40, 1882 "a,
making total of unpaid deposit liza
bilities plus unpaid Reconstruction
Finance Corp loan liability OF ST.
377,559.57.
Interest Total s16S,5O0.
Under the court decisions, the de-
positors and creditors of a receivership
bank are entitled to interest upon their
claims at the prevailing lawful rate
from the date of suspension of the
bank to the date the creditors claims
are fully paid Accrued interest upon
the unpaid liabilities to depositors up
to March 81, 1885, amounted to $685.
500. This would make an aggregate
outstanding liability to depositors and
creditors, including interest on said
claims. plus the amount due the Re-
construction Finance Corp, including
interest as Of March 81. 1885, of ST.
546,059.57 Hence, based upon the re-
ceiver's estimated liquidation value of
the remaining assets plus the cash on
hand of 1881 ,846.96 as Of March 81,
1885, it will be noted that the out
standing liabilities as of that date
exceeded the estimated value Of all
assets, including cash on hand by ap-
proximately s132 2,219.97. This esti-
mated deficit does not include rhe cost
of future liquidation Of the assets, re-
gardless of by whom liquidated. nor
does it allow for necessary capital
structure.
1t is desired to emphasize at this
point, by reiteration, that the FORE
going figures with reference to asset
value should not be taken as final or
as basis for prospective future divi-
dendS or distribution,