Evening star., 1939-07-25
Final Decision
In Park SAVINGS
Case Reached
Justice Luhrinq
Signs Orders on
Compromise

Final settlement of litigation
against the directors OF the defunct
Park Savings Bank was reached to-
day, when Justice Oscar r. Luhring
in District Court signed orders maxi
ing a compromise agreement ef-
rective.
John F. Moran, receiver of the
bank, was designated as the agent
to distribute $35OOOO to depositors.
August was designated as the date
on which a special master, sitting
in room 202 of the Police Court
Building, will hear claims on the
distribution Of this money. The
master will determine attorneys
fees, court costs and other charges.
The remaining $15o,00O is held for
satisfaction of two suits still pending
against the bank. One of these
suits is for 100000, charging neg
ligence on the part of the directors,
and the other is for $4,000, to re-
cover dividends alleged to have been
enormously paid.
AAAS AASAASy PAdNCo AL UllC 1CCClVS
ers hands represents the 5000
negotiated by the directors. Bond
for Mr.. Moran was set at $3.50 900.
On June 80 Justice Jennings
Bailey signed an order nisi and
made 1t returnable today. E. Hill
ton jackson, who with William E.
Richardson, represent a group of
depositors, laid the order before
Justice Luhring.
Suit on Dividends.
Mr.. Jackson explained to the
court today that the suit had been
filed against the directors of the
bank, which had been incorporated
in Alabama for period of 20 years.
The receiver filed suit against all the
stockholders to recover dividends
aliegedly paid illegally during the
period of insolvency. The receiver
also brought suit against the direc-
tors for alleged liability in operating
the bank. after the charter had ex-
pired in 1929
Two groups of depositors exist
those that had money in the bank
when the charter expired in 1929
and those who put their money in
after that time and before the bank
closed in 1888. The second group
is held to be excluded from benefits
under the directors liability for run
ming the bank as trustees after the
charter expired. The court was in
formed that neither of the suits
against the directors and against
the stockholders-had yet been
heard in District Court and the
compromise negotiations were car
ried on almost from the beginning.
Mr.. Jackson warned that if the
compromise was not approved at
this time litigation was in prospect
that might last five or six years and
it has already been on for some
seven years now.
Justice Luhring's order directs
that if any claimants share in the
s35O,000 fund. plus dividends re-
ceived because of his general claim
equal to the amount of his claim re-
ported by the master, exceeds 100
per cent without interest, the excess
shall be paid to the receiver, Moran,
for "the benefit of creditors gener-
ally and stockholders as their inter-
est may appear"
Wilkes Special Master.
James C. Wilkes is named as spe-
cial master, and he will be required
to report to the court the names of
persons who were depositors or cred
itors of the Park Savings Bank on
August 30, 1929, or whose securities
were then held by the bank and
subsequently converted.
The order requires that in de-
termining the amount of subse-
quent Withdrawals, deposits made
after August 30, 1929, shall to the
extent then available be regarded
as the primary fund for payment,
so that the balance remaining for
report will be the lowest balance in
each account between August 80,
1929, and March 6, 1888. The spe-
clal master is to report ON the
amount of fees and expenses to be
paid Mr.. Jackson and Mr.. Richard
son and the special master is to re-
port what, if any, compensation is
due to the Depositors' Committee,
composed of Mrs. Joseph w. Thomp-
son, Robert H. Young. c. c. Hines.
William j. Neale and John c. Drake,
or any member or members of it.