Evening star., 1941-03-16
U. 5. Savings Bank
Depositors Get Plan
To End Receivership
Creditors Asked to Waive
Interest Over ) Pct. to
Wind Up Litigation
BY HAROLD B. ROGERS.

An entirely new plan for early
termination" of the United States
Savings Bank receivership was SUBJ
mitted last night to about 1900 de-
positors in the form of proposal
from the shareholders, headed by
Wade H. Cooper, former president
of the bank.
The plan was disclosed to cred
itors of the institution in letter
from Frederick J. Young, receiver
of the bank, who indicated a COM
munication explaining the proposal
further soon would be sent by the
Shareholders Committee.
In brief, the proposal provides for
depositors to waive all interest in
excess of 3 per cent. in order that
all litigation involving the bank
may be terminated, this per cent
paid soon to depositorS. and the
remaining assets turned over to
shareholders.
Report Sent to DepOSitOrs.
lIlt COllllIlllbNC btAS S@@~@ ,
Il was learned includes Mr.. Cooper,
chairman; Charles A. Goldsmith, a
director of the bank; Wilbur P.
Zepp. vice president; William R.
de Lashmutt, vice president, and
James A Cobb, a director, former
Judge of Police Court. Counsel for
the committee is Norman Fischer.
The bank, which closed in March,
1893. has paid 100 per cent OF de-
posits, in the form of three divl-
dends. They were made available
June %, 1884, IS per cent; october
%, 1885, Is per cent; July 25, 1886,
10 per cent, and March Is, 1888,
final 10 per cent.
Litigation involving this bank has
been long drawn out and compli-
Gated. The principal suit to be
brought to an end by success of
the plan would be the suit of the
receiver to collect a 100 per cent
stock assessment of 100000 from
the stockholders. Over period OF
years Mr.. Cooper attempted in court
several times, unsuccessfully, to
force the Treasury Department and
the controller of the currency. to
reopen the institution.
In his letter to depoSitorS of the
bank MIR. Young explained the plan
in brief and attached a statement
of condition of the bank as OF Feb
ruary 81. 1941. This is a special
report, as ordinarily the condition
of closed banks is made regularly
on the quarter year.
Forego Part of Interest.
The proposal is characterized by
Mr.. Young in his letter as a COM
promise between the conflicting po-
sitions taken by the shareholders
on the one hand and the receiver on
the other.
THE success of the plan" he eX-
planned, depends on the co-opera-
ton offered by the depoSitors who
will be asked to forego part of
the interest accrued on their
claims" Mr.. Young said the pur-
pose of his letter was to inform de-
positors of the condition of the re-
ceivership and the effect of the
proposed plan" so that depositors
would be in a position to consider
the offer from the stockholders.
The liquidation of the assets,
with the exception of the banking
house Fourteenth and U streets
N.WD. which has not yet been Sold"
explained Mr.. Young, has been
substantially completed Claims in
the total amount of 81 ,629, 700 have
been proved. Cash on hand, or
anticipated. amounts to approx
mately $4,000 All creditors who
have proved their claims have been
paid. or there is available for pay
ment to them, the full principal
amount of their claims.
In the litigation which has been
pending between the receiver and
the shareholders the receiver con-
tends that the creditors are entitled
to an additional payment by way
of interest accrued at per cent
per annum, the legal rate, computed
on all unpaid balances of their
claims from the date the bank sus-
pended.
Cash on Hand Insufficient.
ut is contended by the share
holders that the depositors are not
entitled to receive interest and that
all the funds and assets now in the
hands of the receiver belong to the
shareholders. If this contention of
the shareholders be sustained by
the courts the depositors would not
receive any payment for interest,
but If the contention of the receiver
be sustained and the interest paid
in full it would amount to s12.55
per $100 of proved claims, or 1855
per cent of the face amount of the
depositors' claims for which the re-
ceiver has issued certificates. The
cash on hand, after deducting the
necessary expenses of the receiv-
ership, Is insufficient for this pur-
pose, amounting to approximately
one-half of the sum required, and
If the interest Is to be paid in full