American Savings Bank (Washington, DC)

Article Text

DEPOSITORS GIVEN NOTICE AMERICAN SAVINGS BANK SUSPENDS PAYMENTS. Announcement Declares Over Discount Caused EmbarrassmentEarly Resumption Promised. The American Savings Bank, located at 1007 G street northwest, has suspended paynient. The following notice has been sent out to depositors: "By reason of large discounts made by bank and an unexpected withdrawal of this deposits, the executive committee finds itself compelled to exercise discretion 16 vested in it by section 3 of article of the by-laws of this corporation, contained in each pass book and assented to by each depositor, and hereby require that the sixty days' notice in writing be given bank by every depositor before the payment by the bank of any check or order drawn hereon by such depositor. "This bank will consider the presentaof all such orders or checks as such the notice tion as to such orders or checks, and same will be duly paid within sixty days from the day of presentation.' The section of the by-laws referred to, section 3, article 16, "Rules and regulations for depositors," is as follows: "No depositor shall have the right with- to draw money from this corporation out the production of his or her pass book, and all payments made to the per- dethe pass book of a shall be valid payment this of all whose pass for the amount so or order of the The charge the son positor been depositor producing check produced corporation book depositor, liability the has to same paid. thus dis- or to person duly authorized to draw will of attorney duly executed, This corporation reserves the right to be pressly by required. power require hereby depositor sixty exdays' notice in writing from any before making payment of any check or order drawn thereon by such depositor. Payment of checks of depositors will be made ordinarily on demand unless it should in the discretion of the committee, to exercise executive become necessary, the the right time herein expressly reserved as to when such payment must be made. The bank was established and began busiin November, 1898. Its officers, who ness have served since then, are William Oscar Roome, president; Edgar H. Stocking and and Charles N. Wake, vice presidents, Charles W. Powers, cashier. President Roome's Statement. In response to a Star reporter's questions, President Roome said this morning that he was confident the bank would shortly resume payments. The depositors, he stated, numbered about 400 or 500, and the total sum of their deposits was $269,000. "Our assets are $317,000," he remarked. "What do they consist of?" inquired the reporter. "Good paper; good notes," was the re"As soon as collections can be made all ply. upon these notes everything will be right. While Mr. Roome and the reporter were talking the paying teller brought the former a check. After scrutinizing it Mr. Roome said: "I think he left a special deposit here to protect this check. Ascertain if is the case, and if so pay a perfect right to that," yesterday "We such have it.' do said Mr. Roome in an explanatory tone to the reporter. Anxious Depositors. There was a line of depositors before the paying teller's window, mostly women, and anxiety was written in unmistakable lines on their faces. From what the reporter overheard, few of them had received the notice published above, and were informed by the paying teller that they were sent out last night. Mr. Roome told The Star reporter they were sent out yesterday morning. Some of the depositors had given checks to merchants and others Saturday, and the latter had, in the course of business, sent these checks to the banks with which they do business. Many such checks were brought by bank runners to the embarrassed institution today, but none was paid unless depositors had made special dedeposits to meet it. Nearly every positor who came while The Star reporter was there gave notice under the article above quoted of withdrawing deposits, and it was evident that many of the women had all their ready money in the bank and were very much embarrassed thereby. be All were assured that the bank would in a position in a few days to meet all demands.

Article Text

PRICE ONE CENT

RECEIVERS FOR THE BANK. American Savings Institution in the Hands of the Court. Today's Application of Nicholas T. Haller, Stockholder and Depositor, Results in the Appointment of T. L. Jeffords and €. H. Syme. Tracy L. Jeffords and Conrad H. Syme were today appointed receivers of the American Savings Bank by Chief Justice Bingham,of the Supreme Court of the District. The receivers are required to give bond in the sum of $75,000 for the performance of their duties. The condition of the affairs of the bank was called to the attention of the court in a petition filed today by Nicholas T. Haller, who asked for the appointment of a receiver to conduct the business of the institution. Mr. Haller states that he is owner of $10,000 worth of the capital stock of the American Savings Bank and is also a depositor. The capital stock of the bank, he states, is $50,000. As part of his petition Mr. Haller incorporates the circular letter sent out by the bank on Monday last, in which it is stated that on account of large discounts made by the bank, it would require sixty days' notice to be given by depositors of their intention to withdraw their deposits. Continuing, Mr. Haller states that since Monday the bank has kept its doors open and has apparently been transacting its usual business, except the payment of checks Many checks have been presented for payment, it is stated, and payment refused, while other checks have been presented and been paid promptly by the bank officiais. It is further stated that this condition of affairs at this time of year has resulted and will result in detroying the confidence of the public and of its depositors, who will demand the money at the expiration of sixty days. It is stated the assets of the bank will be exhausted in paying same and will be insufficient to meet all demands and in addition the bank will be burdened with its expenses for sixty days, thereby making a further deficit. While the bank is refusing to honor the checks of certain depositors, it is alleged, it is honoring those of others and accepting them in some instances, in payment of promissory notes held by the bank against such depositors. In this and other ways it is claimed the bank is discriminating against certain depositors and against the petitioner, and disposing of some of its assets to the prejudice of the depositors. It is contended that the present business operations of the bank and its continued unbusiness-like and alleged unlawful actions will waste and diminish the assets of the corporation and will add unnecessary expense to its management. It is further stated that the liablities of the American Savings Bank are about $30,000, while the assets-not all of which are good-amount to about twice that sum. T. L. Jeffords is named as counsel for the petitioner. The appointment of the receivers for the bank has broken into the plans of President Roome and the other officers looking to its resumption of business As stated several days ago in The Times the officers of the bank began immediately after it suspended payment to make arrangements to resume. A considerable portion of its liabilities were cancelled with moneys collected, and it was hoped this morning that its affairs would be in condition for a complete resumption by next Monday. A meeting of the stockholders of the bank was to be held this afternoon at 1 o*clock, and President Roome stated this morning that he believed this meeting would decide on some plan for wiping out the other liabilities as far as necessary. Nothing was known by President Roome or the other officers of the institution regarding the intention of Mr. Haller to apply for a receiver Mr. Syme. one of the receivers appointed by the court, is the attorney for the bank. Mr. Jeffords is the choice of Mr. Haller. It is not known whether the receivers will take up the plans of President Roome and the other stockholders or not. but it is supposed that the appointment of the receivers will prevent the immediate resumption contemplated by the officers.

Article Text

RECEIVERS FOR A WASHINGTON BANK

Washington. Sept. 27.-The District Supreme Court to-day appointed Tracy L. Jeffords and Conrad H. Syme receivers of the American Savings Bank of this city. The application was made by N. T. Haller, a director. who says he owns $10,000 of the $50,000 capital stock. He alleges that the llabilities are $30,000 and the nominal assets about was

Article Text

RECEIVERS APPOINTED

-The Ameircan Savings Bank, at No, 1017 G street northwest Washington. which suspended papments to its depositors last Monday, was placed in the hands of receivers yesterday. Application for such procedure was made by Mr. Nicholas T. Haller, a stockholderand depositor of the bank, and was granted by Chief Justice Bingham of the Supreme Court of the District of Columbia. Messrs. Tracy L. Jeffords and Conrad H. Syme were appointed receivers and, after qualifying in the sum of $75,000 each, took immediate charge of the concern.

Article Text

RECEIVERS TAKE CHARGE

The American Savings Bank Closed Pending Investigation. Tracy L. Jeffords and Conrad H. Syme Appointed by Justice Bingham to Look After Institution's Affairs-Depositors to Share Alike. The doors of the American Savings Bank, which suspended payment on Monday last, were closed yesterday by Tracy L. Jeffords and Conrad H. Syme, receivers appointed early in the day by Chief Justice Bingham to take charge of its affairs. When the bank suspended payment to depositors on Monday it still continued to receive deposits. On the petition of Nicholas T. Haller, who owns stock to the amount of $10,000, and who is also a depositor, the court yesterday named Jeffords and Syme as receivers, requiring a bond of $75,000 for faithful performance of duty. It is understood that Mr. Jeffords represents the depositors, including Mr. Hal1er, and Mr. Syme represents the officers of the American Savings Bank, SO that, in the naming of the receivers, both interests are recognized and cared for by the court. In speaking of the condition of affairs at the bany yesterday afternoon, Mr. Jeffords stated that a call will be sent to all persons indebted to the bank to settle their indebtedness. In ten days, he said, the receivers will make a report to the court concerning the condition of affairs, and some step will no doubt then be taken to effect a final adjustment. In the meantime, however, any plans which the bank officials may have had in view will have to remain at a standstill. The condition of the affairs of the bank was called to the attention of the court in a petition filed yesterday by Nicholas T. Haller, who asked for the appointment of a receiver to conduct the business of the Institution. Mr. Haller states that he is owner of $10,000 worth of the capital stock of the American Savings Bank and is also a depositor. The capital stock of the bank, he states, is $50,000. As part of his petition Mr. Haller incorporates the circular letter sent out by the bank on Monday last, in which It is stated that on account of large discounts made by the bank, it would require sixty days' notice to be given by depositors of their intention to withdraw their deposits. Continuing. Mr. Haller states that since Monday the bank has kept Its doors open and has apparently been transacting its usual business, except the payment of checks. Many checks have been presented for payment, it is stated, and payment refused, while other checks have been presented and been paid promptly by the bank officials. It is further stated that this condition of affairs at this time of year has resulted and will result in detraying the confidence of the public and

Article Text

IS BUSTED? The American Savings Bank, Its Depositors and Standing. CHAPTER OF REVELATIONS In Which the President of the Bank Turns 0 to be the Vice-President of the Philadelphia Union Surety and Guarantee Company, with Mr. Parker as Special Agent-The Hobson I Contract and the Discounting of the Bills. That the American Savings Bank, was to past no surprise to The pend 1007 G payments street N. the W. Sunday forced week Globe. was sus- The run on the bank was caused by people who have had business transactions with either the president of the bank, William O. Roome, as the vice-president of the Union Surety Company of Philadelphia, or Mr. George T. Parker a special agent of the surety company, who has offices in and is in close touch with the American Savings Bnak For some time The Globe has been receiving letters and complaints of and concerning the bank and the methods pursued by Messrs. Roome and Parker, as representatives of the Union Surety Company and therefore we anticipated trouble to the concern because of the revelations made in these communica tions. One case in point will illustrate the many grievances against Messrs Roome and Parker. It will be recalled that the Government contractor, J. H. Hobson, who confessed to bribing Capt. King, the army officer, was compelled to turn over his interests to the surety company, which was on his bond. Through Messrs. Roome and Parker it was accomplished in this way. Hobson needed $20,000 more to complete his contract. This the American bank advanced on a guarantee of $15,000 profit on the work. The Messrs. Roome and Parker substituted their friends and relatives for the employes of Hobson, giving the substitutes large increase of salaries. For instance, Mr Parker placed his nephew as time keeper on the works at a salary of $18 per week, which he soon advanced to $25. The original timekeeper, under Hobson, was receiving only $9 per week. Mr. Roome's son-in-law received a salary of $200 per month, although he was entirely ignorant of the work in hand he was placed in full charge. Mr. Nick Haller, the archi tect, was hired at $10 per diem and ex penses; his brother was put on the job at $4 per day, and Bud Thomas was discharged, who had a written agreement with Mr. Hobson. When Mr. Hobson took the bank in with him he guaranteed them $15,000 profit for the $20,000 advanced. A safe estimate of Hobson's profit on the contract placed the figure at $30,000. but the bank and Messrs. Roome and Parker soon froze Hobson out, and by representations to the Government they secured entire and undivided control of the contract. Hobson's securities guar anteeing $15,000 profit are still held to their guarantee by Messrs. Roome and Parker, despite of the fact that all the profits are eaten up by the in 'creased salaries paid the relatives and friends of these gentlemen who were substituted for Hobson's competent and lower paid employes. There were, naturally, a great many bills against Hobson, which the $20. 000 supposedly advanced by the bank and to his credit was held to liquidate When the surety company's representatives, Messrs. Roome and Parker, took firm hold, however, these bills could not or would not be cashed by Mr. Roome immediately. The creditor was put off with one excuse or another until he learned that by discounting the bill with Mr. Parker he could speedily obtain his money. The Globe has a number of complaints on this score, and has been furnished the names of merchants and other creditors of Hobson who had thus to discount their bills. We give only a few: Mr. J. B. Lambie the hardware merchant, was one, however, who would not dis count. and has sued the Hobson contract for $3,500; J. .T. Walker Sons, builders' supplies, Tenth street, how ever, discounted his bill, after trying it more than twenty times to collect He accepted $270 for $300; Mr. Harris discounted the bill of G. W. Thomas, giving him $70 for his bill of $79; James McUen, the stone contractor of Alexandria, Va., had his bill of $600 discounted, after vain efforts to col fi lect it; Mr. Charles Powers, cashier of the bank, discounted some bills bed cause, it is alleged, Mr. Parker, as agent of the surety company was discounting too many, and the home of fice in Philadelphia might become curious or suspicious. Mr. Powers is a partner of the firm of G. E. McKnew & Co., stationers, Ninth street, near F The whole nub of this matter lies in the fact that money to pay these bills d was on deposit in the American bank, Mr. of which Mr. Roome is president; Powers cashier, and Mr. Parker the fl special agent, with offices in the bank of the surety company of which Mr. Roome is vice-president. These things being all well understood, it is quite easy to see that this system of surety company and bank of deposit working hand in hand, with a special agent handy to discount honest bills, that enI emies cropped up and multiplied every to time a squeeze or a discount was effected. Of course, people will talk, C and especially people who have had the C juice or the profit on their bills squeez-

Article Text

TWO ADDITIONAL RECEIVERS

American Savings Bank Affairs Now in the Hands of Four Men. Charles Francis Carusi and Alexander Wolf, representing a large number of depositors, were yesterday appointed additional receivers by Justice Hagner in connection with the settlement of the affairs of the American Savings Bank, which last week suspended payment. A day or two after the bank suspended payment Chief Justice Bingham, on the petition of Nicholas T. Haller, a stockholder, appointed Tracy L. Jeffords and Conrad H. Syme receivers to take charge of the business of the corporation, Mr. Jeffords representing tre interests of the stockholders and Mr. Syme the interests of the bank. When the petition of the depositors asking for representation by receivers was presented to the court Mr. Syme made no objection and stated that he favored the appointment of receivers to care for the interests of the depositors. It is expected that the receivers will file a report during the latter part of the week showing the condition of affairs of the bank.

Article Text

$ n GREAT HEADS Have V. P. Roome and Special Agent Parker. THE AMERICAN SAVINGS BANK Another Interesting Chapter on Surety and Guarantee Companies and on How to Do Up Rival-The New Receivers for the Bank Some Prospects of a "Divy" for DepositorsAdvised Not to Expect Too Much. The article in these columns Sunday last, on the American Savings Bank suspension, caused two additional receivers to be appointed by the court. This action was timely and will, it is to be hoped, save the smaller depositors from entire loss. As stated, for weeks The Sunday Globe was in possession of facts which, if published, would undoubtedly have caused a run on the bank, and while such publicity might have saved a few of the later depositors, we did not feel like assuming the responsibility of the possible injury of a financial institution. That we were on the inside may be gleaned from the fact that one of our informants served as confidential secretary and typewriter to Mr. George T. Parker. Washington agent of the Union Surety Company of Philadelphia, and whose office and connections with Mr. William O. Roome, president of the bank and vice-president of the Union Surety Company, were dwelt upon last Sunday as being close and semi-identical. This young gentleman, to whom we now refer as one of our informants o served as bookkeeper to the Hobson o contract until it passed into the hands f of the bank and Mr. Parker. He is of unimpeachable character and integrity, and has occupied responsible mercanu tile positions in this city. After the Hobson contract had been gobbled up and its profits absorbed with the high 0, salaries paid the employes who were substituted for Hobson's, this young r gentleman continued in the semi-emi ployment of Mr. Parker and associates, while his remuneration has not been according to the promises held out to d him by Mr. Parker. he has no financial claim against that gentleman. He has neither grieyance nor bill to air or present. and tells a perfectly straight 1. forward tale of this most extraordiy nary conjunction of a savings bank, surety company, a weekly publication, and fat contracts. For instance, Mr it Parker drew a salary of $25 per week for the trouble of making out checks on the Hobson contract. This was a t nice salary for light. congenial work but when it is recalled that these checks could not or would not be cashIf ed by the American Savings Bank when presented, the salary seems to e have been "a superfluous sinecure. if 'Appears to have been' is the proper expression, for be it remembered that the checks could be and were cashed d by accommodating discounters. among whom were Mr. Parker himself, Mr. Harris, Mr. Powers (the cashier of the e bank), and others in the "swim." And g all this time the Hobson contract had $20,000 to its credit in Mr. Roome's bank! The $15,000 profit guaranteed and bonded to the American Savings d Bank for this loan will come up later on. and there will be music, inasmuch as the extraordinary salaries paid Mr. u Roome's relatives and friends and Mr. Parker, his relatives and friends, and d Mr. Nick Haller, as architect, eat up It these profits which would otherwise aca crue. This morning, however, The Globe K has a new and unique chapter to add y to the enterprise of Mr. Parker, whose sagacity and superior business qualifications have enabled him to lift monthly income of from $800 to $1. 000. It appears that Forrest T. Vrooman, who was manager here for the National Surety Company of New York, lost his position with that concern. Mr. Parker speedily demonstrated to Mr. Vrooman that he could make himself t quite valuable to the concern of which he (Parker) is the special agent and n Mr. Roome is the vice-president. Vrooman had a list containing the names of the distillers which the National Sure. ty Company bonded. These bonds netted the National Surety Company from a minimum of $10 to a maximum of $100 each distiller. The National Surety Company had. it is estimated, two thousand of these valuable customers. This sum annually from the distillers was not to be sneezed at. It amounted to a pretty figure, and Mr. Parker, as special agent, and Mr. Roome as vicepresident of a rival surety company, were naturally anxious to secure it. Hence, Mr. Vrooman's lists of over two thousand names were secured, under a the promise that any customers secured by Mr. Parker from the lists should be paid for in a reasonable or fixed sum. Mr. Parker thereupon jollied Hobson's bookkeeper (our informant) into running his typewriter every evening for almost a month until 10 P. M. or thereabouts, writing a circular letter to these distillers in Vrooman's name and over Vrooman's signature. The letter, in substance, stated: "Having severed my connection with a the National Surety Company. I am pleased to announce my connection with the Union Surety and Guaranty Company of Philadelphia, Pa., office, 1007 G street N. W. Our rate for each

Article Text

Court Gives Authority

An order was signed by Justice Hagner this morning directing the receivers of the American Savings Bank to deliver to F. Duncan Jaudon the contents of a certain safe deposit box containing $2,000 in stock of the St. Andrew's Church in this city, $100 Scottish Rite stock, some mortgages and other valuables.

Article Text

A FINANCIAL TANGLE.

Owner of Collateral Sues to Have Sale Declared Void.

Jules W. Leroux, of Baltimore, Md., yesterday filed suit in the Supreme Court of the District against Oliver R. Harr and others, in which the court is asked to declare valid a certain sale of securities alleged to have been made by Harr to himself. The other parties named as defendants are: The American Savings Bank, and Tracey L. Jeffords, Conrad H. Syme, Charles F. Carusi, and Alexander Wolfe, receivers, appointed by the court to take charge of the assets and manage the affairs of the bank.

It is explained that on June 7 last Leroux made a promissory note, payable to the order of the American Savings Bank four months after date, for the sum of $6,000. To secure the payment of the note, he states, he deposited with the bank fifty shares of preferred stock of the Structural Iron and Steel Company of Baltimore, Md., and forty-eight shares of the common stock of the same corporation. Shortly prior to the maturity of the note Leroux states, Harr presented the note, and his collateral to him and proposed that he (Leroux) pay the note at a considerable discount.

At that time, Leroux states, the note bore what purported to be the endorsement of the cashier of the American Savings Bank. About the same time, Leroux declares, he was notified by the defendant receivers for the bank that the note was not the property of Harr, but of themselves as receivers of the American Savings Bank, and notified him not to pay the principal or interest to Harr or any other person.

Leroux states he informed Harr of this fact. On October 9, Leroux states he was informed by Harr that he had sold the collateral deposited as security for the payment of the note and purchased them himself for $3,000.

This sale, Leroux claims, was contrary to terms upon which the securities were deposited as collateral. Leroux asks the court to restrain Harr from disposing of in any way the securities referred to, except under order of the court. Ashley M. Gould is named as counsel for the complainant.

Leroux also declares that he is threatened with suit in connection with the transaction, both by Harr and the receivers of the American Savings Bank.

Article Text

Receivers Directed to Show Cause.

Justice Bradley, in Equity Court No. 2, this afternoon signed an order directing the receivers of the American Savings Bank to show cause why petitions filed today by the Western Industrial Association and Samuel J. Masters, through Attorney E. L. Gies, should not be granted. The Western Industrial Association asks that the receivers be directed to pay it $41.01, and Mr. Masters that they pay him $381.28 out of any assets of the bank in their hands.

The association explains that the amount due it was a special deposit placed to meet outstanding checks, while Mr. Masters says the amount he mentions is due him on notes deposited for collection.

It is pointed out by the petitioners that the amounts mentioned were not deposited for the use of the bank, and, therefore, they are entitled to the immediate return of the same.

Article Text

Appeals to Court

William C. Wallis, a grocer, today filed a petition in the Supreme Court of the District of Columbia, his object being to have the receivers of the American Savings Bank return to him certain property now in the safe of the bank. It is explained that the property is a United States government bond of the value of $100, placed in the safe of the bank for safekeeping, to which the bank has no claim.

Article Text

THE SUMS DUE DEPOSITORS

A Report on the Condition of the American Savings Bank. The receivers recently appointed to take charge of the affairs of the American Savings Bank today filed, in connection with the suit of Nicholas T. Haller, a report based on the result of the examination of the export accountant, James E. Bates, in which it is stated that the total amount due to the depositors of the American Savings Bank is $46,495.95. In this amount is included, it is said, a certified check, outstanding, for $810.75, and a certificate of deposit of $1,068. It is further said that the accounts of a large number of depositors appear to be overdrawn, and the overdrawn accounts aggregate $10,991.32. An itemized list of these ace ounts is filed as a part of the report. It is stated that the Union Surety and Guaranty Company had its local offices in the rear of the building in which the American Savings Bank conducted its business and that William Oscar Roome, the president of the bank, was also the local vice president of the Surety Company. It is also stated that from the books of the bank It appears that the Union Stirety and Guaranty Company had a number of accounts with the American Savings Bank, and on September 25. two days after the American Savings Bank suspended payment, four of the deposit accounts show a balance in favor of the Union Surety Company, of $15,927.40. and two of their deposit accounts appear to have been overdrawn to the amount of $420.34, leaving a balance to their credit of $15,507.06, on the day the bank suspended payment. The report goes on to state that "from the books of the bank it appears that on September 24 notes, aggregating the sum of $15,507.06, were delivered to the Union Surety and Guaranty Company. under an agreement purporting to have been made by the American Savings Bank, by William Oscar Roome apparently in settlement of the accounts set forth above and in accordance with the agreement in writing entered into between the defendant bank by its president, and the Union Surety and Guaranty Company by its president, A. Marcus."

Article Text

RECEIVERS FILE REPORT STATEMENT RESPECTING AFFAIRS OF AMERICAN SAVINGS BANK. Gross Amount Due the Depositors Examination of Books Not Fully Completed. The receivers of the American Savings Bank today submitted to the court a report based upon a partial report submitted to them by the public accountant they have employed in the case. It is set forth that the total gross amount due to the depositors of the American Savings Bank is $46,495.95, in which sum is included a certified check outstanding of $810.75 and certificate of deposit aggregating $1,068. Continuing the receivers say: "The accounts of a large number of depositors of the bank appear to be overdrawn, such overdrawn accounts amounting to $10,991.32. "The Union Surety and Guaranty Company had its local office in the rear of the bank and William Oscar Roome, the president of the bank, was the local vice president of the Union Surety and Guaranty Company. "The American Savings Bank suspended payment September 23 and notified their depositors by circular. "From the books of the bank It appears that the Union Surety and Guaranty Company had a number of accounts with the bank. On September 24 four of the deposit accounts show a balance in favor of the Union Surety and Guaranty Company of $15,927.40, and two of their deposit accounts appear to have been overdrawn to the sum of $420.34, leaving a balance to their credit, as appears from the books of the bank on the day of suspension, of $15,507.06. "From the books of the bank it appears that September 24 notes aggregating the sum of $15,507.06 were delivered to the Union Surety and Guaranty Company, under an agreement purporting to have been made by the American Savings Bank, by William Oscar Roome, Its president, apparently in settlement of the accounts set forth in the previous paragraph and In accordance with the agreement in writing entered into between the bank, by Its prestdent. William Oscar Roome, and the Union Surety and Guaranty Company, by its president. A. Marcus. And in addition to the delivery of the notes to the Union Surety and Guaranty Company, Roome made and delivered a certain declaration of trust to the Union Surety and Guaranty Company. The total amount of the notesthe sum of $15,507.06-includes the note of $2,338.62 of William Oscar Roome." The receivers call attention "to notes aggregating $990 delivered to Wolf and Cohen. A large number of notes were accompanied with collateral security, the exact nature of which the receivers at this time are unable to report with any certainty." Messrs. Tracy L. Jeffords, Conrad H. Syme, Charles F. Carusi and Alexander Wolf. the receivers, are unable to state at this time, SO they say, with any degree of certainty all other notes and securities which have been disposed of by the bank or the officers thereof, on account of the fact that the examination of the books of the bank has not been fully completed. and they have received but a partial report from the accountant. In conclusion the receivers ask instructions to protect the interests of all concerned

Article Text

SUES BANK RECEIVERS

Mr. Haller Objects to Statement That He Is Practically Insolvent. Nicholas T. Haller yesterday filed suit in the Supreme Court of the District against Alexander Wolf and Charles Francis Carusi, two of the receivers of the American Savings Bank, to recover $20,000 because, in a petition filed in equity a few days ago, they referred to the plaintiff as "Nicholas T. Haller, an architect, practically insolvent." The suit will, in a measure, decide whether or not receivers appointed by the District Court are liable for allegations made with reference to the status of the matters turned over to them for investigation and settlement. The American Savings Bank, of which Haller was one of the three organizers, suspended payment some time ago. On the petition of Haller the court appointed receivers to take charge of the affairs of the bank. In his petition Haller stated that he was a stockholder to the amount of $10,000. In a report to the court submitted some time ago, the receivers stated that the bank was organized with an ostensible capital stock of $50,000, but that only $270 was paid in in cash, the balance being made up of demand notes. In his declaration, Haller also takes exception at references made by Wolf and Carusi to a statement made in their petition proposing to relate his method of dealing in vacant land. He is represented by Charles W. Darr and Joseph Salomon as counsel.

Article Text

Receivership Hearing Postponed

The hearing in the American Savings Bank receivership case, which was to have come on for hearing today before Justice Hagner, was postponed until Monday next.

Article Text

SUE FOR ASSETS OF

THE AMERICAN BANK

Receivers Ask Accounting of President Roome and Others.

VOLUMINOUS PETITION FILED

Receivers Allege That Bank Capital Was Mainly Paper and Go Into Details of Many Transactions—Ask for Restraining Order.

The receivers of the American Savings Bank, Messrs. Charles F. Carusi, Alexander Wolf, and Tracy L. Jeffords, appointed by the court some time ago, yesterday began suit against Mr. William Oscar Roome, president of the bank, and twelve others, asking for an accounting, and also asked for an order restraining them from in any way disposing of certain assets which, it is claimed, properly belong to the bank. The others named as defendants are Nicholas T. Haller, at whose instance be made subject to the payment of claims and debts of Mr. Roome arising out of his conduct of the affairs of the bank.

It is also asked that the defendant Roome be restrained from transferring, pledging or making away with certain bonds of the Ancient and Accepted Order of Scottish Rite Masons, valued at $20,000.

It is also asked "that premises known as sublot sixty-seven in square 204 in the city of Washington, D. C., be declared and decreed to be held by the defendant Nicholas T. Haller for and in trust for the defendant Nicholas T. Haller, in fraud of the creditors of the said Nicholas T. Haller and of the depositors of the American Savings Bank and in fraud of the rights of the said depositors as creditors of the said Nicholas T. Haller by reason of his conduct and managements of and interest and participation in the affairs of the American Savings Bank as here-inbefore set forth; and that said Nicholas T. Haller and Jacob D. Haller be enjoined and restrained from assigning, transferring, conveying, selling, incumbering or in any way disposing of the said land and premises or any interest therein; that said land and premises may be decreed to be subject to the claims and debts of the said depositors, creditors as aforesaid." H. H. Glassie and D. W. Baker are named as counsel for the receivers.

Article Text

DEMURRER OVERRULED

Bank Receivers Endeavor to Recover on Notes Aggrepating $15,000. Justice Hagner, in Equity Court No. 1, has overruled the demurrer of the Union Surety and Guaranty Company to the bill of complaint filed by the receivers of the American Savings Bank to recover notes aggregating $15,000, which, it is alleged, were transferred by the president of the American Savings Bank at a time when that institution was hopelessly insolvent. The Union Surety and Guaranty Company was a depositor in the bank, and, it is declared, received the notes referred to in payment of its deposits after the bank had suspended payment to its other depositors. The American Savings Bank, which was capitalized at $50,000, was placed in the hands of receivers in the fall of 1901, when, it is asserted, there was only $11.05 in cash on hand, the officials having parted with all the securities. The bank, it is further alleged, owed $49,000 to depositors above the amount owed the Union Surety and Guaranty Company, to which the notes mentioned were transferred. The answers to the bill of complaint filed by the receivers against the directors and other officers of the bank, it is understood, will soon be placed on record, an extension of time for filing the same having been granted by reason of changes in the personnel of counsel for the defendants. The object of this bill is to require the directors to make good the $49,000 said to be due the depositors. It is expected that the case in which the surety company is named defendant will be reached for final hearing about a month hence. Former Senator Charles J. Faulkner and Attorney C. H. Syme appear for the surety company, while Attorneys Leckie & Fulton, John Ridout and T. Percy Myers represent the bank officials, and Attorneys D. W. Baker and H. H. Glassie the receivers.

Article Text

RECEIVERS TO PRESS FOR A SETTLEMENT Savings Bank Case to Be Called in Court. HISTORY OF THE FAILURE Litigation Instituted by Receivers to Save Something Out of the Wreck for the Depositors. The creditors of the defunct American Savings Bank, which did business on G Street. between Twelfth and Thirteenth Streets, will soon get a run, at least in litigation, for their money. According to the report of the receivers, Tracy L. Jeffords, Charles F. Carusi, and Alexander Wolf, the available assets of the bank consists of about $15,000 worth of promissory notes and one piece of real estate. Pursuant to an agreement reached some time ago at a meeting of the receivers it was decided to press the litigation to a final settlement of the affairs of the bank at the present term of the Supreme Court of the District. The American Savings Bank, upon the application of Nicholas T. Haller, was placed in charge of receivers on October 1, 1901. An examination of the bank failed to disclose any money on hand, but showed that the stock subscribed was, in many instances, only paid for by promissory notes, which remained unpaid and were held as part of the assets of the bank. Accounts Overdrawn. They also ascertained that the accounts of a large number of depositors and of the stockholders was overdrawn in large amounts, and the amount due depositors was $46,495.95. This included certain outstanding checks of $810.75, and certificates of depositors aggregating $1,068, and the total overdrafts amounted to $10,991.32. The receivers also ascertained that the directors of the bank gave notice of their intention to suspend payments or. September 26, 1901, and a short time thereafter there were delivered by the bank to the Union Surety and Guaranty Company negotiable notes aggregating the sum of $15,507.06. The receivers filed a petition in equity to set aside the transfer and delivery of the said notes to the Union Surety and Guaranty Company, and asked that payment be made directly to them. Action Against Directors. In addition to this proceeding instituted against the Union Surety and Guaranty Company the receivers instituted proceedings against all those directors of the bank who had given their notes in payment for stock and had never paid the same, and against all those who had overdrawn their accounts, and other parties who had had questionable transactions with the bank. This proceeding is still pending in the equity court and is expected to be heard some time during the next term of court.

Article Text

THE COURT RECORD

District Supreme Court.

EQUITY COURT-No. 1-Justice Anderson.

Haller agt. American Savings Bank; receivers authorized to compromise certain claims. Complainant's solicitor, T. L. Jeffords; intervenor's solicitors, Wolf & Rosenberg; defendant's solicitor, C. H. Syme.

Burns agt. Hayes; decree adjusting rights of parties; complainant's solicitors, Cole & Donaldson and H. B. Moulton; defendant's attorney, H. E. Davis.

Alman agt. Alman; order overruling decree of May 12; complainant's solicitor, G. P. McGlue.

Tatem agt. Tompkins; Henry F. Woodard and Reuben S. Smith appointed receivers for sale; bond, $25,000; complainant's solicitors, Birney & Woodard and G. E. Tralles; defendant's solicitor, R. S. Smith,

Anderson agt. Mariner; rule as to appointment of receiver discharged; complainant's solicitor, F. S. Key Smith; defendant's solicitor, M. N. Richardson.

Taylor agt. Taylor; rule as to payment of alimony pendente lite, returnable May 27; complainant's solicitor, L. C. Williamson.

Article Text

District Supreme Court.

EQUITY COURT NO. 1-Justice Anderson. Haller agt. American Savings Bank; receivers authorized to compromise claim. Complainant's solicitor, T. L. Jeffords; defendant's solicitor, C. H. Syme; intervenor's solicitors, Wolf & Rosenberg.

Larner agt. Gideon; receivers authorized to sell; reference to auditor. Complainant's solicitor, J. B. Larner; defendant's solicitor, T. P. Myers.

Adams agt. Adams; auditor's report confirmed. Complainant's solicitor, Leon Tobriner.

Howard agt. Armstrong; sale finally ratified and reference to auditor. Complainant's solicitor, J. F. Mullaly; defendant's solicitors, W. A. Johnston, J. H. Wilson and F. E. Mitchell.