Anaheim First National Bank (Anaheim, CA)

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SEVENTEEN STATES CHECK RUNS ON BANK

Seven More Join Movement to Restrict Withdrawals of Deposited Moneys

THREE AND FOUR DAYS TO BE TEMPORARY HOLIDAYS

Situation Easing in Some States as Legislatures Planned Curb Laws

Mississippi, Arizona, Nevada and in Oregon today joined the states. which there are limitations placed on the withdrawals of deposits from banks. in which limitations on withdrawals now exist. The proclamation of Gov. Ralph at San Francisco makes mandatory the closing of California banks (or three-day period ending Saturday The three-day holiday called Gov. Murray in Oklahoma for same period also is mandatory. The of Gov. Allen of Louisiana provides for the sation until the end of the week "all public business including Banks and other public enterprises." Mississippi the decree of state banking called only (Continued On Page Two)

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BANK CLOSING'S EFFECTS

Thousands of theories are being voiced as to the causes and effects of the closing Thursday morning of all of the banks in California. Wise men who stand high in the financial world differ in their opinions on these two angles of the great crisis, so one guess is just about as good as another. But the fact remains that the three-days' holiday of closed banks will surely prevent any "run" on the banks which might come at this time. And "run" on bank is the worst thing that can happen, financially, to any community. It means, if carried far enough, that the bank must close permanently, and that means loss to the depositors as whole and the men who stand back of the bank stockholders. By the time the banks re-open next Monday it is thought the frenzy of withdrawal will have been overcome either in the minds of the people or through legislation making it compulsory. Other states that have declared similar banking holidays are now re-opening their banks with satisfactory results and business resumed in the normal channels. Let us have faith that this will be the outcome in California. Meanwhile, efforts to continue trade and business activity as usu will be made in Escondido. with an exchange worked out on confidence in the integrity of the merchants, business men and all citizens whose promises to pay are regarded as "good." So the whole thing sifts down to the matter of confidence, which is really the ultimate need and necessity of the situation, all the way from Escondido to New York, or even to Washington.

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California Bank Extended Holiday Until Thursday

Few Institutions Expected to Open Tuesday Morning

SAN FRANCISCO, March Federal Reserve Bank of San Francisco closed today for the duration of California's banking holiday.

Rolph tonight proclaimed an extension of the Callfornia bank holiday until Thursday, March The new three-day period will begin Monday with general holiday similar to the one now in effect. the governor said. The holiday Tuesday and Wednesday will be effective under terms of the special holiday bill passd today by the legislature. Provisions of the bill affect only banks and permit them to open or remain closed, it was explained. The action was taken by the governor after the assembly had approved the special holiday bill by vote of 54 or by exactly the required two-thirds vote. The senate passed the measure with only one opposition vote. The holiday extension will be fective for the three-day period re. gardless of what action is taken on specific bank bill now before the legislature, the governor said. Action on this measure was delayed until Monday.

SAN FRANCISCO, March officials were bit puzzled tonight as they tried to determine course of action to follow Tuesday, when "special holiday," proclaimed by Governor Rolph, becomes effective. Under bill passed by the state legislature late today, the governor was permitted to proclaim special as well as general holidays. The banking moratorium was extended until March with the understanding that Monday would be general and Tuesday and Wednesay a cial holiday On special holiday banks may close or be opened as their officers desire. It was believed some banks would open Tuesday and Wednesday while most of them would remain closed until the legislature approves bill permitting restriction of withOfficials of the Bank of America discussed the situation tonight but said they probably would not reach decision or have an announcement to make until Monday. Wells Fargo Bank and Trust Company officials were understood to be desirous of opening Directors of other banks preferred to follow along with the majority and wait for some protective legislation.

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BUSINESS CONDITIONS IN 12TH DISTRICT

Banking developments in the 12th district, as in the United States generally, were of dominant importance during late February and the first half of March.- No outstanding changes in the general business or financial situation had been apparent during the first six weeks of the year, although the failure of two rather large and several smaller banks in January had been followed by withdrawals of deposits from other banks. About the time that the force of this adverse influence appeared to be coming to an end, however, widespread publicity given to the Michigan banking moratorium and to other unfavorable banking situations began to have an effect in the 12th district, and immediately following announcement of banking holidays or restrictions in other eastern states on February 25 a substantial run on California banks developed. This relatively heavy run lasted for three days -February 27, February 28 and March 1-when it was brought to an end by a proclamation of the governor of California closing all banks in the state for a three-day period. This action in California was followed by runs on banks in other far western states and by March 3 emergency banking restrictions had been placed in effect in all 12th district states. Withdrawal of currency during the week ending March 1, while at a re. cord rate, was SO short-lived that its effect upon district banks deposits was relatively small. Currency payments by banks to depositors were about 30 million dollars during the week ending March 1, compared with deposits in those banks of considerably more than three billion dollars at the beginning of this year. Banks met the unusual demand for currency by borrowing from the Federal Reserve bank of San Francisco and by drawing upon their reserve balances, which had been built up during the first half of February through transfers of funds from other parts of the United States.

Reopening of banks under licenses issued by the secretary of the treasury and by state authorities commenced on March 13 and proceeded

20 most 12th district banks had resumed customary operations, although a good many were either in the hands of conservators or had been closed for liquidation. Currency which had been withdrawn prior to the closing of banks on March 2 was redeposited in large amounts between March 13 and March 20 and considcrably more gold coin was turned in to the Federal Reserve bank of San Francisco than had been withdrawn from January 1 to March 4. 1933. Redeposited currency was sent in to the reserve bank to repay borrowings and to increase reserve balances. Volume of production was slightly smaller in February than in January. Department store sales and intercoastal trafic through the Panama canal increased, but the number of cars of freight loaded on district railroads during the month decreased. Other trade measures changed little. Petroleum production during February approximated that of the preceding month. The cut of lumber declined contrary to the seasonal movement and the volume of engineering construction decreased sharply. Employment conditions remained about the same in February as in January. Commodity prices declined slightly during February, but advanced considerably during and immediately following the banking holiday in March. Non-statistical reports inicate that the banking restrictions during the first half of March reduced business activity. particularly retail sales volume.

The engagement of Miss Edna May Bradbury and Willis Cruse has been anounced. Miss Bradbury, laughter of Mr. and Mrs. Lou Bradbury. was the incentive for a surprise party one recent evening given by a number of friends. During the evening she was presented with a shower of gifts for her new home.

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BANK DIRECTORS APPROVE OF REORGANIZATION

Stockholders to Consider New Plan Monday Evening; $25,000 Paid

Tentatively approved by the board of directors, plan to reorganize the Anaheim First National bank will be submitted to stockholders by the at joint meeting to be held Monday evening the bank. This decision was reached at meeting Tuesday evening when directors threshed several plans reorganize, deciding upon one which will call for raising of a substantial amount of additional capital. If the stockholders approve this plan, it will be sent to Washington for approval of the comptroller of currency. "We have high hopes of successful reorganization," President William A. Dolan states. "Depreciation of certain bonds is what caused all trouble. Since the bank was placed under receivership last week, these bonds appreciated $28,000 by Wednesday. This increase in capital, plus additional capital which believe we can raise in the community, would put us on what believe would be solid financial footing. Of course, if our bank is reorganized and thus opened, all accounts under $2500 would be guaranteed by the govWe still retain our national ernment. charter." In the advent that the bank is not reorganized soon, Receiver Hogan will speed up liquidation, according to Dolan. At the time the comptroller of currency placed the bank under a receiver, it was carrying an average of $50,000 in new accounts, all held in cash, government bonds or as deposits with the federal reserve bank. Receiver Hogan issued call for all depositors of new accounts (those who have deposited money or opened accounts since the bank holidaye) to appear this week and get federal reserve bank checks for their entire balance. During Monday and Tuesday approximately $25,000 were issued to about half the new debalance must be positors. All the drawn out, with indications Wednesday pointing to the necessity of sending out to new depositors additional warnings come and get their money in full.

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Bank Receiver Moves to Southern County

With the moving of the Southern County bank to the former quarters of the Anaheim First National bank on West Center, J. V. Hogan, receiver for the latter bank has transferred his office to the quarters formerly occupied by the Southern County bank Depositors may receive blanks for filing their on the First National bank from Mr Hogan at the building on the corner of Center and Claudina

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CALIFORNIA BANKS GIVEN RFC LOANS

WASHINGTON, Nov. 26 (P)The Reconstruction Finance Corporation announced that during October it had authorized two loans totaling $210,000 to California banks. They were: The Anaheim First National Bank (receiver). $110,000. The First National Bank of Madera, $100,000. The report disclosed that $65,000 had been loaned to the United States Building and Loan Association (receiver) of Los Angeles. Three loans to private industrials were authorized during October in the state. These loans carry interest of per cent. They were: Kinner Airplane and Motor Corporation of Glendale, $200,000. Wesix, Incorporated, San Francisco, $10,000. Hovden Food Products Corporation of Monterey, $40,000. Two California irrigation districts also received loans: Reclamation District No. 108 of Colusa, $24,000. Littlerock Creek Irrigation District of Little Rock, $102,500. The corporation announced it had withdrawn subscription for $300,000 of preferred stock in the Security Trust and Savings Bank of San Diego. It also withdrew $1,371.03 of a loan to the First National Bank of Corcoran, and $15,000 of a subscription for the preferred stock in the First National Bank of Loma Linda.

Fulfilling childhood desire, J. Quilla Ward, farmer of Douglas, Ga., recently completed a month's cruise down the Suwannee river on a raft made by his own hands.

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California Banks Given RFC Loans

WASHINGTON, Nov. 27 The Reconstruction Finance poration announced that Con October it had authorized during loans totaling $210,000 to Califor nia banks. They were: The Anaheim First National Bank (receiver), $110,000 dera, The $100,000. First National Bank of Ms. The report disclosed that had been loaned to the $65,900 States Building and Loan Associa United tion (receiver) of Los Angeles. Three loans to private industrials were authorized during October the state. These loans carry terest of per cent. They were: Kinner Airplane Motor $200,000. Corporation of Glendain and cisco, Wesix, $10,000. Incorporated, San FranHovden Food Products tion of Monterey, $40,000. Two California irrigation. tricts also received loans: Reclamation District No. Colusa, $24,000. Littlerock Creek Irrigation trict of Little Rock, $102,500. corporation announced it drawn its subscription for 000 of preferred stock in curity Trust and Savings San Diego. It also withdrew $1,371.03 loan to the First National of Corcoran, and $15,000 scription for the preferred in the First National Bank Loma Linda.

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$40,000 GAMBLING EQUIPMENT LOST

STOCKHOLDERS DELAY FUNDS

Bank Receiver Indicates Early Payment on Deposits Looms

Claims of stockholders the in Anaheim First National gave contributions in effort to repair the impaired capital the bank before became funct, and which considered and recommended by Receiver Hogan and his attorney. Benjamin Chipkin having no legal status, will delay the payment of first perhaps after Christmas Mr. who has been making every possible effort to surprise the depositors with sizeable dends before the reports that. although he feels these claims on the part the stockholders no still they be and definitely rejected approved by the federal office before the for vidends can be taken up.

Haste

In an effort the matter out the way soon as possible Hogan and his lawyer have sent telegrams airmail letters Washington bearing their epinions matter statements contend action on the bearing legal standing Mr Hogan says that his sympathy the depositors and he will go to whatever necessary to gather legal data support of his against the stockholders' claims in an effort have these claims tabled in prefer to

Loan Obtained loan from the Reconstruction Finance corporation recently effected to absorb the $39 000 remaining on the original loan, the to be paid out dividends. Mr. Hogan for some time has hoped to pay the first dividend before the of stock holders which now are preventing such payment are based upon contention special for money extended to the bank in effort to bolster credit Should the federal office dispose of the stockholders' claims promptly still may be possible make the dividend payment planned, Hogan prompt recommendation for payment be made by Mr. Hogan as soon as the matter settled, he said. The necessary form for the recommendation prepared and will be rushed to Washington soon can be considered. As soon as this done an announcement will be made through The Bulletin. There are 1800 depositors in Anaheim who have looked ward to dividend since the bank closed in March, 1933.

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Defunct Bank Pays Out $56,476 in Two Days; 1st Dividend

Depositors Fill Lobby Monday and Wednesday; Receiver Praises Aides

Scores of depositors in the defunct Anaheim First National bank received a gladsome Christmas present Monday when they received a 32 per cent payment on their deposits in the bankthe first money paid out since it was closed nearly two years ago. On Monday depositors took out a total payment of $38,540.38 and on Wednesday secured another $17,926.67. making a total of $56,467 in two days out of the for this payment. When the bank closed it had $282,322 on deposit. sum considerably lower than usual because of heavy withdrawals in the run on banks current just before the bank holiday was declared.

Signed checks were returned from Washington, D C., Sunday for distribution to depositors of the bank Receiver J. V Hogan. Mrs. Dorothy Barnett and Roy DeLamare worked nearly through the night to get receipts and reports in readiness to begin distribution of the checks Monday Word of the payment was first announced at 8 o'clock and, although there was no printed statement until late that day announcements of the dividend telephoned and told by word-of-mouth to residents of the city, resulting in the lobby being crowded all day long with happy groups drawing the first money they had received from the bank since it was closed on March 2. 1933

"We exerted every effort possible to get the money to the depositors before Christmas," Receiver Hogan stated "Legal complications set us back, and other problems arose Officials at Washington certainly co-operated to the full. est extent. and when the decision was made to pay the dividend now the checks were rushed through in record time. They were received here late Sunday. We worked nearly through the night to get everything in readiness for payments Monday because we realized the influence such dividends would make toward contributing to the happiness of many families, as well as to business conditions generally cannot praise the efforts of Mrs Barnett and Mr. DeLamare too highly They gladly worked overtime and on a holiday at that, in order that we could start paying the day before Christmas.' Receiver Hogan declares he doesn't know when any further payments will be made.

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DEPOSITORS WILL GET $72,000

Receiver States Checks Now Available Amount to 20 Per Cent

IS SECOND 'MELON'

Future Payments Depend Upon Outcome of Law Suits Now Pending

Depositors in the defunct Anaheim First National bank today are receiving an unexpected 20 per cent dividend on their claims.

The amount available for distribution approximates $72,000, and brings to 52 per cent the dividends to date. A 32 per cent dividend was made just before Christmas last year.

J. V. Hogan, receiver, said today that another fair sized dividend is to be expected, providing litigation now pending does not go against the receivership. He said there still is considerable property to be disposed of, and that this will go into dividend benefits.

Claimants must present their claims at the receiver's headquarters, 148 E. Center, where checks are awaiting them, Mr. Hogan said.

The receiver issued the following letter of announcement, setting forth the method of payment and the conditions surrounding the event:

It is with the greatest of pleasure that I announce the distribution of a 20 per cent dividend to the depositors of the defunct Anaheim First National bank.

This dividend distribution I will make immediately to those who have proven their claims and who present their receiver's certificate at my office, 148 East Center street, Anaheim.

The payment of this dividend was made possible through an advance of funds by the Reconstruction Finance Corporation. Such funds are very limited and it was only through the untiring efforts and whole-hearted support of J. F. T. O'Connor, comptroller of the currency and his steadfast loyalty to my request that the funds were secured, and this dividend distribution made possible.

Ever mindful of my obligation to the depositors of this bank and their welfare, it is with a feeling of pride that I make this announcement of a second dividend payment. I shall strive to continue to serve the depositors to the best of my ability and in doing so, I trust and hope to reap a reward of their confidence and appreciation. I find pleasure in the work of liquidation of this bank, I find joy and satisfaction in my association with the good people of Anaheim and I trust and hope that this dividend payment will add an atmosphere of happiness and good cheer to my friends and depositors whom I have been privileged to serve during the past year.

Wishing one and all the very choicest blessings and a very merry Christmas and a happy and prosperous New Year.

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Three Closed Banks Pay Dividends

Christmas cheer was brought to 4140 depositors of three defunct banks in the Los Angeles area today by the announcement of National Bank Receiver J. V. Hogan that dividends totalling $119,167.86 would be paid them before the holidays.

Hogan received word of the dividends in the following telegram from Comptroller of the Currency J. F. T. O'Connor in Washington:

"Am sending air mail today the following dividends:

Your City National Bank, Huntington Park, third dividend of 10 per cent amounting to $27,721.60 to be distributed among 1064 depositors, bringing total payments up to 50 per cent.

"First National Bank of Monterey Park, fourth dividend of 8 per cent amounting to $23,934.54, to be distributed among 1810 depositors, bringing total payments up to 46 per cent.

"Anaheim First National bank, second dividend of 20 per cent, amounting to $67,511.72, to be distributed among 1266 depositors, bringing total payments up to 52 per cent.

"It is a pleasure to bring this Christmas cheer to the people of your banks."

Hogan praised O'Connor and his administration for their good judgment and careful thinking during the difficult period which followed the closing of the banks.

"Only Comptroller O'Connor's unremitting effort, coupled with his conscientious adherence to duty and his loyal co-operation with his receivers, make possible these dividend distributions to the unfortunate depositors of these defunct national banks," declared Hogan.