Evening star., 1936-03-03
:63 stockholders
e '.
SUED BY RECEIVER.
Hamilton Seeks to Recover
100 Per Cent Stock
Assessment.

q. Thirty-seven stockholders Of the
Northeast Savings Bank, and 2e stock
holders of the Washington Savings
Bank today We're sued by Norman r.
hamilton receiver for both closed In
stitutions, to collect 100 per cent stock
assessment.
The suits were fled in both District
Supreme Court and in Municipal
Court, just in time to get within the
statute of limitations, which, under
Arizona law. will bring an end to-
morrow to the right of the receiver
to sue.
Both banks were chartered under
the laws Of Arizona. This State re-
quires a receiver Of closed bank to
nIe such suits for collection Of double
liability within three years after clos
ing. These banks closed March 3,
1888, with the declaration Of the ma
tional bank holiday by President
Roosevelt. Under Arizona law, 1t
would be too late after tomorrow for
Receiver Hamilton to collect by suit.
Many Have Paid.
Many stockholders of both of these
banks have paid their assessments,
or made arrangements to pay. Within
the past two weeks, Receiver Hamil-
ton has been pressing the remaining
stockholders to pay, in order to es-
cape the necessity of court action.
Many have responded, in addition to
those who earlier had paid, or made
arrangements to pay.
In the Northeast Savings Bank
about half of the 1876 stockholders had
paid their assessments in full, others
had made arrangements to pay ana
suits today were filed against the re-
nlainder.
In the Washington Savings Bank
there were 81 stockholders, of which
80 were sued today.
: The capital stock Of both banks
stood at 100000 and the double
assessment was for that amount in
each institution.
Paid IS Per Cent.
Receiver Hamilton, by liquidating
the two banks, had paid already to
depositors Of the Northeast Savings
Bank dividends amounting to IS per
cent of deposits, and to deposltors IN
the Washington Savings Bank divi-
dends totaling 80 per cent. Under
law he now is required to proceed
against the stockholders, IN order to
collect sufficient funds to pay the de-
positors up to 100 per cent
If, through the collection OF double
liability, there should ever be more
than enough to pay the depositors and
the cost of liquidation. any left over
could be prorated back to the stock
holders.
In his suits, filed identically in all
cases, Receiver Hamilton relates how
each of the banks was chartered under
Arizona law to do business in the Dis
trict of Columbia. under authority Of
the controller Of the currency, but
still subject to the State legislation.
Interest Also Demanded.
The Arizona statute under which
Hamilton proceeded today was quoted
in part, as follows:
"In case of the dissolution or liqui-
dation of any bank the constitutional
and statutory liability of the stock
holders must be enforced for the bene-
at of the creditors of such bank by
the superintendent of banks or by
any receiver. The action to enforce
such liability may be commenced
within three years after the closing
of such bank, and may be commenced
Immediately upon closing of the bank
II, in the judgment of the superin-
tendent or receiver, the assets of such
bank are insufficient to meets its liza
bilities."
Demand was made in each suit for
the amount of the assessment, because
''the same was not and has not, nor
has any part thereof, been paid by
defendant nor by any one on his be-
half, although demand therefor has
been made"
Interest on the assessment also Is
demanded at the rate of per cent
from the date of the assessment
Suits were filed against the follow
Ing stockholders in the District Su-
preme Court:
Washington Savings.
Eugene Casey, 1925 Whittier street,
$1,000; Joseph A. DAILY, 1346 Otis
place, $500; Hennie ]. Jones per-
sonally and as executor of the estate
of Edwin c. Jones, 142 Tennessee ave-
hue northeast, $4,1O0; Lawrence
Leapley, 1131 New Jersey avenue
southeast, $3.50; John D. Leonard,
1855 Euclid street, s10,48O; Robert E.
Mann. 3l6 Ninth street, $500; Mary
L. Noyes, 1349 Monroe street north
east, $3.50, and Joseph K. Sharp, $50
e street, $2,210.
Northeast Savings.
L. P. Steuart. 1440 P street, $6,87O:
Guy T. Steuart, Sixth street and New
York avenue, $3.50; Watson v. Shell
ton, 1874 Jocelyn street, $3.50; Fred
s. Schow, Tower Building, $1.050:
Elizabeth Vivian, as trustee for John
Vivian. $3.50; Elizabeth Vivian as
trustee for Hugh F. Vivian, $3.50.
and Elizabeth Vivian personally, 1445
Spring road, $4,000.
The following suits were filed in
Municipal Court:
Washington Savings.
Anna B. Hick, 1901 Connecticut ave-
hue, $100; Bernard A. OIeary, 1904
Massachusetts aven,re so50. Tnhp ~