South Pasadena National Bank (South Pasadena, CA)

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BANK CLOSES DOORS TODAY

South Pasadena Institution To Repay All Depositors 100 Cents on Dollar

South Pasadena National bank, which closed its doors this morning by vote of the board of directors because inability to meet payments, will be re-opened within one week as branch of chain bank system. repaying to all depositors 100 cents on the dollar, it was learned at the institution today. Assets Frozen Frozen assets and mild run on the bank yesterday afternoon culminated in the decision of the directors turn control of the bank over to Chorpening. national bank examiner. who with the aid of two assistants. going over the bank's books. The doors dered closed by the examiner until he completes his work. The bank has enjoyed an excellent record of growth since opening three years ago. Deposits from the latter part February, 1928, January, 1929, increased almost 100 per cent over the preceding year. Bank Solvent Particular stress was directed on the fact that the bank is solvent. has sufficient amount of assets to cover liabilities. but those assets are difficult to negotiate under present market and banking condiDeposits in the institution at the time of closing were approximately $700,000. reported. Of this total. about $250,000 is invested in marketable stocks. No depositor will lose money either by having the institution's assets and liabilities in

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BOARD CLOSES DOORS OF BANKS

Pasadena National in Hands of Examiner

Promise Payment be Reopened Branch as of Chain Institution

SOUTH PASADENA, June deposits in excess of $700,000 its books, the South PasaNational Bank, one of the largest banks in this city, its doors today because meet payments. that all deOfficials be paid cents dollar and the institumay within branch of large chain

SMALL RUN OCCURS Frozen assets and small run bank afternoon directors' decision doors and place bank charge the deposits, $250,000 to seucrities and the directors that depositor either through assets totaling than absorbed chain bank. the bank charge the the board directors." ASSURANCE GIVEN groups worried depositgathered sidewalk the the southcorner Fair Oaks avenue Mission None bank's could issue no statement the bank combooks. about four the bank has board Gates, chairman the board: Burgess, president; Hoag, and Parslow, local water department has deposit in the postoffice about $1600. ddition to these deposits, the local reported to total $11,200.

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NAME NATIONAL BANK RECEIVER

Outlook Hopeful for South Pasadena Financial Reorganization

SOUTH PASADENA, July Though neither Chorpening. federal bank examiner, by whose order the South Pasadena National bank was recently closed, nor any former officials of the institution will give any statement for publicawas learned that latest development in the case is the pointment of receiver. Heathcote, assistant vice-president the National bank has been selected for this post. With this appointment, Mr. Shorpening has affairs of the closed bank over to the new receiver.

Outlook Is Hopeful A feeling of optimism. and of for the future the bank now the and others directly interested. Adding to this hopeful outlook the unoffithat an influential group citizens are formulating plans whereby the institution will reopened. said that if this plan materializes, the bank start business again stronger and better condition than before, ample capital will be placed disposal to make such condition

Business Better In the meantime, whose money was up by the closing bank, some whom were business men of the city, are making desperate struggle to keep going. Fortunately none these themselves forced In few rolls were seriously effected, all these have covered, at least temporarily, and should the bank resume business within time, business conditions South Pasadena will be normal

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Accused Banker Furnishes Bond

Appearing yesterday morning before United States Commissioner Head, Richard Roberts, former vice+ president of the suspended South Pasadena National Bank. posted $5000 bond pending a hearing on September 6, next, on the charge of embezzling $4800 of bank funds. A complaint charging Roberts with the asserted offense was issued last week by the United States Attorney on information supplied by National Bank Examiner Chorpening. in charge of the investigation leading to the bank's suspension few weeks ago. Roberts asserted to have appropriated to his own use money placed on deposit.

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Receiver Tells Creditors' Procedure For Obtaining Claims

South Pasadena National Official Makes Plain Steps Necessary

SOUTH PASADENA, Aug. made Heathcote, receiver of the South Pasadena National Bank, which closed its doors on June 1929, that he now prepared to receive claims from depositors and other creditors. claims must be prepared upon the special forms which will be furnished by the receiver application. Each claim upon must be sworn to before notary and must be accompanied by pass-book other documentary evidence the debt," explains receiver. Mr. formerly assistant of National Bank Los Angeles, was appointed receiver the South PasaNational Bank, by the comptroller of the currency Washington July 12, since when he has been busy staff of assistants. getting the affairs of the bank into proper condition for the receiving claims. Mr. Heathcote explains that after claims have been filed, must be proven and verified by the receiver and upon completion such proof, ceivers will be issued the various creditors. These certificates indicate the amount claim which been allowed, while not negotiable, will be transferable assignment, but such assignment must recorded upon books receivership. Thereafter, dividends will paid to holders certificates, but impossible say when such dividends will be paid, what amounts, this question pends entirely upon the success otherwise the receiver the collection debts due to the bank.

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RE-OPENING RUMOR DISMISSED

Bank Receiver Declares Such Move Impossible

SOUTH Aug. 27. Heathcote, the South National Bank, little possibility the bank under cirand predicted that liquidation, progress for the closed institution, would be carried completion. He that he had not yet been by any sound group ready to make towards the 'Depositors of the bank can be great service the declared, filing their claims now fast We the claims did not too during the few that the bank was open for this purpose, and are ready many daily. Depositors the bank are since August 16, file their claims. They have right make any claims after this date, according the estimated than of the bank not yet funds the liquidation proceedings wound up.

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DEPOSITORS

Court Action Promised If Roberts Case Does Not Untangle Problem

SOUTH PASADENA, Sept. Because no reports have been made to them, depositors of the former South Pasadena National bank are becoming nervous, according to reports. Court action has been promised if the Richard Roberts case, scheduled to be held October does not clear matters up. "It would seem only fair." said one man, "that we, the depositors. be furnished some kind of periodical report from the board of directors or from the bank examiner, who makes the statement that "gossip around town hinders him in his work.

"A statement would quash all gossip. We want to know where Two reports were received concerning the trouble released upon several individuals who since all their money in the bank are in want food and clothing. From the second source comes the report that the Community Chest unable to help the unfortunate because this the time of the year when no funds are available all has been given out the previous spring and the fall drive has not yet began. Charges have been leveled at the head of Bank Receiver Heathcoate concerning his actions on claim papers. From another group of depositors comes the word that action against directors probably will be taken within short period of time. The outcome of the Roberts case October will decide whether such action necessary or not. An attorney already has been employed in this case. Charles W. Hill. 426 Fremont avenue, chairman of the meeting of positors which was held during the first part of the month of August, could not be reached for statements because of his absence in Oregon where he will remain for three weeks.

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DEPOSITORS TO BACK

Comptroller Orders Payment of 50 Per Cent

South Pasadena Bank Pay in Few

More Promised Funds Are Collected

SOUTH PASADENA, Oct. Depositors other creditors the South Pasadena National Bank, closed by Federal bank examiners last June, receive dividend checks within few weeks, the vealed today. The dividend ment today by the Comptroller Currency. Heathcote issued following statement afternoon: stock 100 levied against the stockholders the bank on September 21, last. Acting favorably upon receiver's the Comptroller now authorizes tribution and creditors whose claims have filed and proven, an initial dividend per dividend payable only those holding cannot paid until the dividend checks received, for three weeks. meantime, attempt obtain dividend checks prior the nouncement these ready, merely the work. ceeding be as funds are collected."

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Bank Receiver Urges Depositors to Prompt Action to Secure Funds

As recently announced in the press, a fifty per cent dividend will be paid shortly to creditors of the South Pasadena National Bank, but only to those holding receiver's certificates. It has been pointed out by Mr. Heathcote, the receiver, that a considerable number of people filed their claims but failed to come back to the bank to obtain their certincates, and it might be well for any persons whose claims were filed prior to November 1 to call at the bank and obtain their certificates. Several hundred dividend checks have already been made out and forwarded to Washington for signature. Upon their return they will be distributed. Those persons who neglected to file their claims before November 1 will not be included in the first distribution of dividend checks. It is further pointed out by Mr. Heathcote that commencing on August 14, 1929, legal notification was published that claims must be filed by creditors within ninety days. This time has almost expired, but many people have neglected to file their claims. Forms for this purpose can be obtained upon application at the bank, and tnese must be completed, sworn to before a notary public, and lodged with the receiver before November 15. Many people are asking when the distribution of the fifty per cent dividend will be made. It is pointed out by Mr. Heathcote that it is impossible to answer this question. Distribution of checks will be made and proper announcement given as soon as these are returned to the receiver from the Tederal authorities at Washington.

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BANK RECEIVER MOVES OFFICES

The offices of Receiver F. W. Heathcote of the South Pasadena National bank were moved Monday from the former banking rooms at Fair Oaks and Mission street 619 Beaux Arts building. Eighth and Beacon streets, Los Angeles. The move was made expedite liquidation of the defunct institution, Mr. Heathcote explained. and in the best interests of depositors and other creditors.

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FORMER AIDE INDICTED BY JURY

Richard Roberts to Face Federal Fund Charge

SOUTH PASADENA, April 19. Roberts, former vice-president of the defunct South Pasadena National Bank, yesterday by fedgrand the bank application making false surrender Monday the United marshal. announcement made attorney, Michael Narlian, said when Mr. Robhe will also all of the accusations against bank suspended operations June following investigation bank and accountants. time, but the case was held abeyance pending the report of the indictment he post new $5000 bond for his release.

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LOS ANGELES, April 19. Richard Roberts, former vicepresident of the now defunct South Pasadena National bank, indicted yesterday by the federal grand jury on charges of misapplication of $12,000 of the bank funds and making false entries in its books, will day morning. to the United States marshal. This was the announcement made his attorney, Michael Narlian, who said that when Roberts surrenders on the indictment Monday morning at o'clock he will also deny the accusations against him. The South Pasadena National bank suspended operations last June following an investigation by bank examiners and ants. reported to be in sition to liquidate losses basis of 50 per cent. The entire loss may be liquidated 100 cents the dollar result of assessments on stockholders. cording to Assistant United States Attorney John Layng.

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SOUTH PASADENA EX-BANKER FACES SWINDLE CHARGE

LOS ANGELES April the defunct South Pasadena president National bank, indicted yesterday the federal grand charges of of the bank funds and false entries in its books, will render Monday morning to United marshal. This today by his attorney, Michwho said that Roberts surrenders on the indictment morning tions he will also deny all of the against The South Pasadena National bank suspended operations June following an investigation bank reported to be position liquidate losses basis of cent. The entire may liquidated 100 cents the dollar result of stock holders, according United States Attorney John Layng. Roberts was arrested plaint the time bank pended but the case was held abeyance pending the report of ernment accountants the indictment he quired post $5000 for his release, Layng