About 1,500 stockholders in the defunct Bank of United States who are alleged to have settled debts to the institution for a small fraction of the amount owed, will be the defendants in a suit to be brought next Monday, depositor plaintiffs claiming1 that a full settlement woud have guaranteed dollar for dollar payment of their savings, only about.half of which has been salvaged.
The trial will decide whether the stockholders are liable for the bank’s obligations to depositors to the extent of $25 a share. Plaintiffs claim that the average settlement accepted from firms and individuals who borrowed money from the bank aver-aved fifty percent, and in some instances ten percent. One case was reported where a $9,507 deht was settled for $250.
Superintendent of Banks Broderick could not be reached for comment.
JTA has documented Jewish history in real-time for over a century. Keep our journalism strong by joining us in supporting independent, award-winning reporting.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
