Evening star., 1937-10-29
IS CLOSED BANKS
LIKELY TO YIELD
ADDED S7,9DO,0())
Dividends to Go From 70.9
to 90.9 Per Cent, 0'Con-
nor Report Predicts.
FIDELITY SALE APPROVAL
MAY COME NEXT WEEK
Four of the 16 Houses Will Re.
turn 100 Per Cent to Depositors,
Receivers Estimate.

Depositors in 16 closed banks here
probably will get about s7,900,000
more than they already have received,
according to an official estimate by
Controller Of the Currency j. F. T.
O'Connor, in charge Of these receiver
ships.
Average dividends here probably
will be increased from 709 per cent
to 90.9 per cent, he said.
Progress in the Fidelity Building
and Loan Association case also was
reported by the Controller, who said
the proposal for sale Of its assets to
the new First Federal Savings and
Loan Association probably would go
to court for approval early next
week.
These announcements were made
by the Controller in an address last
night before the National Woman's
Democratic Club.
I'VE have 16 banks in receiver
ship whose deposits at date of clos
ing were S39,893,928," the Controller
said
Deposits have been paid off in the
amount of s28,298, 8,256, or 70.9 per cent,
including offsets allowed. 1t is esti-
mated that additional recoveries to
depositors will aggregate S7,979,415.
or 20 per cent, which means that it
is expected that depositors of these 10
banks will receive an average return
of 900 per cent.
Four to Make Full Return.
"The average percentage of expense
of liquidation to total collections, in
cluding offsets allowed, is 6.8 per cent.
The receivers estimate that four OF
these 16 banks will return 100 per
cent or more to depositors. Two re-
ceivership banks in the District al
ready have paid their depositors in
full
THE Chevy Chase Savings Bank
has returned to depositors 108 per
cent, while the Neutrality-suspicious.
Savings g. Commercial Bank has paid
dividends amounting to 100 per cent.
Both of these receivershipS have been
terminated and the Chevy Chase Saw
ings Bank had q remainder of assets
to deliver to the stockholders agent"
The controller did not name the
other two banks which he estimated
would return 100 per cent or more TO
depositors. The recent report of F. j.
Young of the United States Savings
Bank, however, has been interpreted
as indicating this receivership will be
one of those to pay out.
"The receivers and conservators of
Is banks in the District of Columbia
borrowed from the Reconstruction
Finance Corp. s14,408,583," said the
controller" and all but $1,071 ,046.
which is owed by five banks, has been
repaid"
Fidelity Case.
Discussing the Fidelity case, Mr..
O'Connor said:
"Under the plan worked out, the re-
ceiver of the Fidelity Building and
Loan Association will sell the assets OF
the old association in bulk to the
newly-established association and as
purchase price therefor the new asso-
citation will furnish funds SO as to
enable the controller through the re-
ceiver to pay a first and final dividend
of 85 per cent to all shareholders OF
the old association.
1t is necessary, OF course, that the
old shareholders legally establish their
claims with the receiver. The face
amount of shareholders accounts in
the old association aggregates approx
mately $4,500,000. Dividends will be IS
per cent of that or approximately
$3,825,0O0.
"A contract covering the proposed
sale has been agreed to by the new
association, the receiver and the Fed
eral Home Loan Bank Board. The Of
flee of the controller of the currency is
now awaiting receipt of advice from
the First Federal Savings g. Loan As
sociation and from the Federal Home
Loan Bank Board of formal and Off
cial approval
ut is expected that details will be
worked out during the next few days
and that petition requesting approval
can be filed in court probably next
week."