Evening star., 1936-08-09
.$l,1OO,O()O IS FREED
.TOPAY DEPOS|TORS
OF CLOSED BANK
Fight Against Assessment
Is Dropped by Federal
American Stockholders.
100000 FOR R. F. c.
MAY PERMIT NEW LOAN
Receiver Unable to Determine
When Depositors Will Get
Their Cash.

Depositors of the Federal-Ameri-
can National Bank & Trust Co. were
encouraged by word from Receiver
Cary A. Hardee yesterday that the
end of a court fight by stockholders
unsuccessfully resisting assessment
had cleared the way to release ap-
proximately $1,100,0O0 already col
lected from other stockholders, for
use in liquidating the institution.
These funds had been tied up by
the pending litigation, as fund 'in
trust" pending outcome of the suit
by the Davis Trust Co. of Elkins,
w. Va, for some of the stockholders.
The defeated plaintiffs signed stipu-
lation yesterday, agreeing to drop fur
ther litigation.
Release Of the stock assessment
money, with prospect that the Davis
case stockholders also will pay now.
indicated that one of the principal
obstacles to consideration of a divi-
dend to depositors had been cleared
away. This does not indicate an
immediate dividend. however. because
several other important steps will be
necessary before a dividend can be
declared.
Owes $4,000 to r. r. C.
The closed bank owes nearly $780,
900 to the Reconstruction Finance
Corporation. 1t appeared likely that
the receiver would now proceed to paw
off some, If not all. of this debt. If
he does this the remaining assets of
the Federal-American might permit
another application for a new loan
from the r. F. c. All this takes
much time, and there was no definite
indication yesterday when a dividend
might be considered, or how much
it would be.
The last quarterly report Of the
Federal-American however, SHOWS
that there are considerable asset.
still remaining in the receivership.
They are listed at a book value of
S8,045,232.14, as of June 80, but an
estimated value" of only S2,850,197.
So, including the stock assessment
Actual cash in hand at that date
was given as Sl,2IO, ,o4i.25
Collections Satisfactory"
Stockholders Of the Federal-Ameri-
can have already paid in a larger
percentage than the average collec-
tions for all failed banks. Receiver
Hardee said special effort" will be
made to collect the remainder.
Hardee said the collections shave
been more than satisfactory" in view
Of the contest in the courts. Sub
stantially more than so per cent of
the stock assessment of $4,000 900 has
been collected already. This COM
pares with the average stock assess
ment collections of 1927 per cent for
1871 closed trusts, shown in the last
annual report of the controller of
the currency.
The Federal so far has
! paid one dividend of so per cent, on
which actual cash had been distrIb-
uted up to June 80 amounting to
s4,l77,16974 Many depositors have
not yet claimed their funds, accord
ing to the record.
Closed Since March 6, 1888.
The Federal-American has been
closed since March s, 1888. nearly two
and a half years. The average time
for closing up liquidation of banks is
shown by the controller to be about
5l2 years.
Explaining the Davis court case.
Hardee said the Davis Trust Co., as
trustee for Halle D. Elkins, John T.
Davis, and others, contested the stock
assessment levied against the stock
holders of the Federal-American. The
assessment was upheld in the District
Court, and the case dismissed, on mo-
ton of the receiver and his associates.
Appeal was made by the stockholders
to the Court of Appeals here. and the
assessment again was upheld.
The stipulation signed by the plain
tiffs yesterday agreed not to request
rehearing in the Court of Appeals and
not to apply for a writ of certiorari
to the Supreme Court of the United
States.