Evening star., 1939-08-08
Park Savings
Checks Due
Much Later
Wilkes Explains
S,t,ution at
Hearing

Taking further steps toward dis
tribution of funds to 1929 creditors
of the Park Savings Bank, James c.
Wilkes, special master appointed by
the court, announced today that 1t
would be many weeks at least be-
fore depositors may look for actual
checks.
This was explained at the con-
clusion of hearing held by Mr..
Wilkes in the Police Court Building,
where mass of detail was gone
over in making progress on the case.
The hearing will be resumed at 10
m. tomorrow at room 202 in the
Police Court Building, it was an
nounced. This will be an open hear
ing when depositors whose claims
nave not been proven may appear.
The principal business today was
the presentation in evidence of a
great pile of bank records by John
F. Moran, receiver of the bank, who
was represented by his counsel, Her
bert M. Bingham and Bruce A. Low.
Auditor to Be Named.
Mr.. Wilkes announced that after
conference with counsel in the
case he will appoint within a few
days an auditor to 60 over the
record and prepare final recommen.
dations on the basis of which Mr..
Moran, acting as distributing agent
Tor the court, can pay out whatever
FUNDS are available out of the
moneys paid in by directors.
This proceeding is for the specific
purpose Of deciding how much
money to pay to depositors and
creditors of the bank who were
IN the institution before the ex-
piration of its charter August 30.
1929. The funds will be paid to
these people on the basis of their
low balance" between August 30.
1929, and the date when the bank
finally closed in March. 1888.
How much money these people
Will get cannot be determined at
the present time, it was brought
out at the hearing, because of
several factors undetermined at vet
In the first place, there is
fund of s350,000 allocated by the
court out of the s500.OO0 pledged
by the directors. The other $3.50 900
Will go to all general creditors.
Claims Total S815,615.
The 1929 depositors have filed
claims according to figures submit
ted today to the special master by
Receiver Moran, amounting to s815,-
olo. based on their low balance.
Before it can be decided, how
ever, how much these people will
get. the special master must decide
on how much in the way of court
costs and counsel fees and compen-
satlon, if any, for a depositors' com.
mittee comes out of the s350OOO.
The question of counsel fees will
come up at later hearing bv the
special master, but he explained to-
day that he hopes to appoint the
auditor shortly in order that work
may begin as soon as possible on
the records, to expedite the pay
ment. On account of the vast
amount of work involved, however.
1t was apparent that payments will
be delayed probably until sometime
in the winter.
William E. Richardson, counsel
for the depositors' committee. par
tlclpated in the hearing for his
group. He estimated that out of
a total of $1,000 depositors alto
gether in the Park Savings Bark
about one-third of these would
share in the recovery from the di-
rectors
The half million dollars pledged
by the directors as a result of long,
drawn out court litigation is paw
able in October.
Under a court order signed bv
Justice Oscar R. Luhring, July 25,
a plan was laid down for distribu-
ton of s500,000 realized from direc-
tors of the institution. In consid-
Grafton Of the payment of half a
million dollars by the directors. two
further pending suits in court were
to be withdrawn-one for S2,OOO,0O0
charging negligence on the part of
directors and another demanding
restitution of s150,00O alleged to
have been paid in dividends to
stockholders.
The financial status Of the Park
Bank briefly is as follows:
Deposit liability at closing, So
100000.
Dividends Of "a per cent paid to
creditors, amounting to about
100000
Securities now in hands OF re-
ceiver. about 500 900.
Cash in hand, about 100000.
Prospective cash from directors,
r5OO mn