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CANTON BANK CLOSING HERE HITS CHINESE State Takes Charge of Oriental Financial House in S. F. as Hongkong Failure Weakens It The Canton Bank, 500 Montgomery street, one of the principal financial houses of Pacific Coast Chinese, was closed yesterday by the State banking department, "to protect the interests of its depositors." The bank's liabilities will total several hundred thousand dollars, John Franklin Johnson, State su perintendent of banks, announced last night. Failure of the Oriental Commercial Bank in Hongkong, in which the Canton Bank was "badly involved,' forced the closing, Johnson said. Whispered rumors in Chinatown started a quiet, steady run on the bank last week. Heavy withdrawals made by cautious Chinese mer. chants hastened the bank's closing. CROWDS LAMENT Yesterday morning a strange white sign appeared in the bank's windows "Closed by order of the State superintendent of banks The legend was also carried in Chinese characters The word spread quickly up Sacramento street into Chinatown. Wrinkled yellow men and women came hurrying They gathered in front of the bank. tried the locked doors, and began lament in Can tonese singsong. Plainly was the little merchants and clerks who worried most. The large business men. keeping secret. evidently got their money out before the bank was closed. hatever returns the Canton bank will make to its depositors is in the hands of the State banking department. Superintendent Johnson would make no statement last night, pending complete audit of the bank's assets and liabilities The banking department will main in charge of the Canton affairs ESTABLISHED IN 1907. The Canton Bank was established in 1907 by wealthy Chinese of San Francisco. Lew Hing. its president, also was chairman of the board of directors of the defunct China Mail Steamship Company, and several of the bank's officials also were officers of the steamhip company The China Mail went into Involuntary bankruptcy in 1923, when libels totaling $800,000 were filed against it for alleged violation of dope smuggling laws. Reports were current then that the Canton Bank was financially interested in the of the steamship company. In its last periodical statement to the State Banking Department the Canton Bank listed its capital at $600,000 and its surplus at $100,000 The Bank of Canton, Ltd., another San Francisco Chinese financial house, not involved in the Canton Bank's difficulties
