Evening star., 1936-07-20
COOPER DEFEATED
IN SUIT TO GAIN
CONTROL OF BANK
Action for End of United
States Savings ReCeiv.
ership Denied.
COURT FIGHT BEGUN
IN FALL OF 1888
Appeals Bench Finds No Evi
dence of Bad Faith by
Controller.

Col. Wade H. Cooper met defeat in
the United States Court of Appeals
today in his prolonged fight to gain
control of the closed United States
Savings Bank, Of which he was presi-
dent and majority Stockholder.
Asserting the bank was solvent,
Cooper had asked that the receivership
be terminated and the assets Of the
institution be returned to the original
officers and stockholders.
The court held there was no evi-
dence Of bad faith on the part of the
controller of the currency which
would justify it in questioning mis-
judgment that the bank was insolvent.
For almost three years Col. Cooper
has carried on vigorous court battle
to force reopening the bank.
Active in 1885.
In September, 1888, he asked the
court to compel the controller to re-
open the bank on a plan he rendered,
but which was refused because 1t
caused the depositorS to waive por-
tion of their deposits. The trial court
denied his petition and its decision
was sustained on appeal.
In another suit, Col Cooper success
fully STAYED off efforts by the con-
troller to bring the United States Sav-
ings Bank from the merger which re-
suited in the formation of the Ham,
ilton National Bank.
The decision today was in Col
CooperS third suit Had the appellate
court failed to sustain the lower
court, which had dismissed the bill
an unusual situation would have
arisen, since the receiver, Carter B.
Keene, already has disbursed $1,286,-
55491, representing 80 per cent of the
deposits on hand when the bank NOR
atorium was declared in March, 1888
This payment to depositors was made
possible, officials explained. through a
Reconstruction Finance Corp. loan.
Tells of Asset Increase.
Col Cooper contended that by
March /, 1884, assets of the bank had
increased in value so that the insti-
tuition was wholly solvent. He ad-
mitted that at the time the bank
was closed the STABILITY of its assets
was so depressed that they might not
have realized sufficient cash to pay
all the Indebtedness and capital stock.
The receiver was appointed in Feb
ruary, 1884.
Speaking for the court, Chief Jus
tice George E. Martin said:
The controller determined that the
bank was yet insolvent, whereas the
president of the bank contends it
had regained its solvency. This mere
contradiction standing alone compels
the court to accept the official deter
mination of the controller.
1T has been held by a long array
Of authorities that where the control
Ter Of the currency has held bank
TO be insolvent and has appointed a
receiver for 1t, the court will not sub
stitute its judgment for the judgment
Of the controller unless it appears by
convincing proof that the controllers
action is plainly arbitrary and was
made in bad faith"
Finds Lack of Proof.
There was no evidence OF bad faith
IN the present case, the court declared,
adding that the mere declaration that
the controller acted in bad faith does
not constitute proof of that allegation.
Secretary Of the Treasury Morgen-
thau, Controller of Currency ]. F. T.
OConnor and Receiver Keene, who
were defendants in the suit, were rep
resented by George P. Barse, J. Bruce
Kreamer, George B. Springston and
Herbert NJ Bingham.