gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
b3b5a0b2fc1b8371
Response Measures
None
Description
July 1932 run triggered by name-confusion rumor; bank later closed in March 1933 holiday and never resumed independent operations.
Events (3)
1.July 16, 1932Run
Cause
Rumor Or Misinformation
Cause Details
Withdrawals sparked by similarity of name with the North Capitol Savings Bank (which had been taken over), prompting depositor confusion and rumors.
Measures
Treasury delivered a truckload of cash; officers publicly reassured depositors and paid withdrawals; bank remained open and held extended hours.
Newspaper Excerpt
Treasury Delivers Truckload of Money to Meet Northeast Savings Demands.
Source
newspapers
2.March 4, 1933Suspension
Cause
Government Action
Cause Details
Closed during the March 1933 banking holiday; a conservator was appointed March 14, 1933 under the Bank Conservation Act.
Newspaper Excerpt
On March 4, 1933, the Northeast Savings Bank ... closed its doors, remaining closed after the President's proclamation of March 6.
Source
newspapers
3.November 15, 1933Receivership
Newspaper Excerpt
On Nov. 15, 1933, a receiver was appointed for the bank and was substituted for the conservator in this case.
Source
newspapers
Newspaper Articles (22)
1.July 16, 1932Evening StarWashington, DC
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OFFICER ASSURES BANK DEPOSITORS Treasury Delivers Truckload of Money to Meet Northeast Savings Demands. Reassurance regarding the stability and strength of the Northeast Savings Bank. Eighth and H streets northeast. which has had an unusual number of withdrawals for the past two days, was given today when the Treasury Department delivered a truckload of cash to the institution and George F. Hcover. executive vice president, announced to assembled depositors that they would be paid if they desired to withdraw their accounts. Mr. Hoover. addressing the crowd which filled the bank a few minutes before noon. assured them that the bank was sound and it closed at the regular hour of noon and will reopen this evening at 6 o'clock. Mr. Hoover explained the unusual demand on the institution by the similarity of name with the North Capitol Savings Bank. taken over by the controller of currency. That institution is located in the same neighborhood as the Northeast Savings Bank. No change has been made in the board of directors or the officers of the bank. Mr. Hoover told depositors. and the institution has the full confidence of the Treasury Department and large downtown bankers. The Northeast Savings Bank was founded 16 years ago with a capitalization of $100.000. Its total resources are $1.600.000. Sixty days ago. Mr. Hoover declared. it was examined by the Treasury Department and found to be in excellent condition.
2.July 17, 1932Evening StarWashington, DC
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REGAIN CONFIDENCE IN SAVINGS BANK Depositors Quit Line at Northeast Institution-New Accounts Opened. Following a number of withdrawals during the past two days at the North- H east Savings Bank, Eighth and streets, George F. Hoover, executive vice resident, said last night he had noted trend to re-establishment of confi- and dencé a in the soundness, strength safety of the bank when several people left the line and a number of new will accounts were opened. The bank Monbe ready for business as usual day morning, he announced. This bank is sound, safe, in a posi- to tion to pay everybody and intends "There do it," declared Mr. Hoover. is no reason whatever why people be unduly disturbed at rumors will be open as able to morning, and ness should We Monday usual be The for busi- bank take care of everybody. was open during the regular Saturday evening hours last night. Officers Are Unchanged. truckload of cash was delivered to A the bank yesterday from the Treasury Department. Just before the regular Mr. hour at noon yesterday depositclosing to assembled in ors no change has officers Hoover the that board explained of directors or been the made of the bank. He said the institution the full confidence of the Treashas ury Department and large downtown bankers. Northeast Savings Bank was The 16 years ago with a capitaliza- are Its total Sixty days ago, $1,000,000. tion founded of $100,000. resources Mr. Treas- Hooit was examined by in and ury ver said, Department found the to be excellent condition. Meantime, from the Mount Vernon and Bank, at Ninth street official Savings avenue, came an last night over the of W. Lee, president, to statement Massachusetts Frank leading signature offering reward "for information and conviction of spreading the $500 persons arrest damaging the Savings rumors person or concerning the Mount Vernon Bank. "Never in Better Condition." malicious and unfounded rumor has "A been spread througout the city, his statement. "and of the Government in the stability said some concerning particularly depart- of this which has uneasiness to some of our ments. institution. some naturally have Christ- deposi- caused those who bank. vacation savings in in to assure our tors, mas We wish and especially depositors the that particular. and the public at large, was the Mount Vernon Savings Bank in a better financial position never than at the present time. We are pre- our pared to meet every obligation and depositors need not feel the slightest funds concern for the safety of their held in their name in this bank. We strongly urge our depositors not their savings. in our bank than much to withdraw safer They put they away will are carried on the person. or the for be supposedly safekeeping about house. Vernon Savings Bank is and sound as the Rock raltar. as We have, can, and solid The Mount will of meet Gib- us All demands made upon have ask is that those we all served legitimate we can so well in the past institution. continue have confidence in our that to pledge our word and honor such We confidence will not be misplaced. Can Pay All Obligations. not listen to idle rumors. If in- in'Do is wanted concerning our stitution. formation its officers will gladly supply that Again we declare is on Mount request. Bank to it Vernon Savings pav the liquid. and in a position in full sound. all of its obligations on We demand trust this statement will reassure have those of our depositors who may rubecome disturbed over the malicious mors heretofore who have referred already to. withdrawn sugTo those and vacation savings, we bank, gest will be safe and where Christmas they they return them to the our available purpose when actually needed for acintended by the depositor when the count 'In closing, was large opened. we depositor desire to has say withdrawn that that not a single dollar from our bank except busineeded a in the ordinary conduct of ness. wish to take this opportunity to these to We our sincere appreciation and the express depositors for the support " given confidence displayed.
3.July 23, 1932New Journal and GuideNorfolk, VA
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$5,000 DEPOSIT HELPS BANK TO WEATHER STORM
Prudential In D. C. Is Victim Of Store's Scare
WASHINGTON, D. C.-While bank examiner kept watch ready at any minute close the institution, the Prudential Bank, 715 Florida Avenue, northwest, weathered twoday run on it last Friday and Saturday and resumed business as usual Monday morning. The run was stemmed after every resource and minute speakers were called into action to persuade depositors not to withdraw their funds. From every pulpit in the city Sunday an appeal was made against continuation of the run. Meanwhile officers and directors of the bank were conference working out plans for keeping the bank open. Deposits $5,000 At the most critical moment Saturday, Mortimer M. Harris, an attorney, climbed into chair and announced to the crowd in the bank that E. A. Clements would make a deposit of $5,000. Clements left the bank hurriedly. Finally he came back and brought with him a stack of bills totaling $5,000. He handed them to John R. Hawkins, president of the bank, with the declaration, "That's what think of Prudential!' The crowd burst into cheers. Some withdrew from the lines. The run began Friday following the closing of four white banks here. Collateral totaling more than $20,000 was hypothecated at other banks to meet the demands of depositors. Depositors Quieted Officers of the bank asked depositors to attend a meeting at Mt. Carmel Baptist Church Friday night. Pledges agreeing not to withdraw more than 10 per cent of their deposits in the next 30 days, signed that night and the next morning reached the figure of $101,000. When the bank reopened Saturday morning the run was continued. Officers and supporters of the institution appealed to the crowd not to wreck the institution by withdrawing all their funds. Speaker ,after speaker mounted chairs and addressed the crowd. Other officers and supporters sought signatures to pledges. The bank invoked the rule against member of the national staff and later financial secretary of Shaw University, was called to the secretaryship at Houston, Texas, succeeding Gilbert T. Stocks, who resigned. Mr. Craver is graduate of Shaw University and the University of Chicago. He served many years the student work of the National Council. the withdrawal of savings funds without 30 days' notice. Some who sought to withdraw their funds from checking accounts were dissuaded by officers from doing so. Other depositors added to their deposits. Cause of Run Ira L. Chorpening, chief national bank examiner, looked on as the depositors staged their run, prepared to close the bank if the tide ran against those who were struggling to keep the institution open. The refusal of a down town department store accept check on he bank was given by officers as the cause for the run on the Prudential.
Other banks, all white, wtre having trouble simultaneously. The Comptroller of the Currency close the bank was given by officers as Raymond L. Schreiner, president, was arrested and charged with larceny in connection with an alleged shortage of $59,700 in the accounts. The next day the Comptroller of the Currency closed the North Capitol Savings Bank, in which there were large number of colored depositors, and the International Exchange Bank because of insolvency. The Departmental Bank voluntarily close its doors. At the same time the run was being made against the Prudential there were runs against the Northeast Savings Bank and the Mount Vernon Savings Bank. A truckload of cash was delivered to the Northeast Savings Bank by the Treasury Department. The run on it by the similarity of with the North Capitol Savings Bank, which is located in the same neighborhood. The Mount Vernon Savings Bank last Saturday night offered $500 reward "for information leading to the arrest and conviction of the person or persons spreading damaging rumors concerning the Mount Vernon Savings Bank. Industrial Bank Open the Associated Negro Press deadline is reached the Industrial State Bank of which W. H. P. Brown is president, is open and doing business as usual.
4.March 1, 1933Evening StarWashington, DC
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LOCAL BANKS ACT TO PROTECT FUNDS District National Limits Withdrawals-Others Invoke 60Day Clause on Savings. The District National Bank opened today on a 5 per cent withdrawal basis, following action taken by the directors early this morning, for the protection of depositors. President Joshua Evans, jr., announced. (The following notice was addressed today to the depositors in the bank: "Owing to heavy withdrawals of deposits during the last few days, and in order to safeguard all of our depositors, the board of directors has passed a resolution allowing depositors to withdraw 5 per cent of their balances in this bank at the close of business February 28, 1933, until further notice. All new deposits and new accounts opened March 1, 1933, and thereafter are subject to 100 per cent withdrawal at any time after actual realization cf funds by the bank." 60-Day Clause Invoked. The officials stressed the fact that all deposits made today and after this date can be withdrawn in full at any time. It was announced in the financial district that most of the local building and loan associations have invoked their time clauses on withdrawals, limiting the amount to $100. For larger amounts notice must be given in advance. Officials said the rule would be in force for the present. Several savings banks here invoked the 60-day clause on withdrawal of savings accounts. Some of these banks permit the withdrawal of 10 per cent up to $100. Above that amount, the 60day or two-month notice, is being required. Protective Measure. Among the local banks which have adopted this rule-the same plan which has been adopted extensively in other cities-are: United States Savings Bank, Chevy Chase Savings Bank, Security Savings & Commercial Bank, Park Savings Bank, Seventh Street Savings Bank, Washington Savings Bank, Anacostia Bank, Mount Vernon Savings Bank and the Northeast Savings Bank. (In an earlier edition of The Star the name of the Washington Mechanics' Savings Bank was included with those involking the 60-day clause. This was incorrect.) Officials said the action was taken merely as a protective measure, both for the banks and for the depósitors. The Commercial National Bank. which closed yesterday, has been placed in the hands of Robert C. Baldwin, a receiver of the office of the controller of the currency. Mr. Baldwin has taken over the receivership from J. L. Bailey, who took charge when the bank was closed. It was explained that Mr. Bailey will remain for a while in his capacity as a national Bank examiner to assist Mr. Baldwin. Has Considerable Experience. In the meantime, it was said at the Treasury Department, the new receiver probably will use a large part of the staff of the bank for his work. The new receiver. before Joining the office of the Controller of th è Currency, had considerable liquidating experience. Under the auspices of the Government he has been receiver for e bank at Lynn, Mass., since the latter part of 1931, and has been directing its liquidation. An official of the Treasury said in regard to Mr. Baldwin: "By reason of his ability in liquidating that bank, the Treasury Department saw fit to transfer him to the Commercial National Bank. We have every confidence that he will administer the affairs of the institution in a manner satisfactory to all concerned."
5.April 13, 1933The Washington TimesWashington, DC
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LIST OF THOSE TO BE OPENED DUE FIRST Some Must Be Reorganized, Others Face Liquidation, Cummings Indicates The condition and prospects of the 13 closed Washington banks will not be made public for another two or three days. With reports on most of the closed institutions before him, Walter J. Cummings, executive assistant to the Secretary of the Treasury, is moking a thorough study of them before making a statement. The first news expected to be available to anxious depositors will concern those banks which may be permitted to reopen on their present sites and under their present names. Account Data Issued Later news will give the names of those banks which will be allowed to reopen after reorganization and then the banks which will be required to liquidate will be named. Commercial depositors in the Commercial National Bank are receiving statements of their accounts from the receiver today. Only balances are being furnished, cancelled checks being retained. Later depositors in the savings fied to department appear for balancing will be noti- of their passbooks and holders of other evidence of indebtedness also will be summoned. Depositors To Meet Depositors of the Park Savings Bank will hold a meeting in the Mount Pleasant branch of the Public Library tonight. Members of a special investigating committee are to report results of attempts to glean information regarding the affairs of the bank. Nearly half the stock required for reopening of the Northeast Savings Bank has been subscribed, it was announced after a stockholders meeting last night. Beginning next week the bank will be open nightly from, 7 to 9 to receive subscriptions.
6.April 15, 1933The Washington TimesWashington, DC
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COOPER OFFERS BANK D AN A plan through which he hopes to recover the Commercial National Bank from the hands of a receiver is to be submitted to F. G. Awalt, acting Comptroller of the Currency, by Col. Wade H. Cooper, president of the closed bank. Colonel Cooper hopes to confer with Mr. Awalt today regarding details of the plan which has been approved by a depositors' committee. He refused to disclose the nature of the proposal which was formulated by a special group and submitted to the general committee yesterday. If the plan is approved by the comptroller, Colonel Cooper said it would be laid before the stockholders. He declined to say whether reorganization or the opening of a new bank is contemplated. More than 5,000 shares of stock. more than half the new stock needed, has been subscribed for the proposed reopening of the Northeast Savings Bank, George F. Hoover, conservator and one of the vice presidents of the institution, announced. Meantime, depositors and stockholders in the 13 banks which failed to reopen at the close of the banking holiday are waiting for information regarding the probable future of these institutions. Walter J. Cummings, executive assistant to the Secretary of the Treasury, is studying detailed reports on the condition of these banks and has assured Washingtonians that local money tied up in the banks will be released as soon as possible.
7.May 1, 1933Evening StarWashington, DC
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DEPOSITORS LINE UP AT CLOSED BANKS North Capitol Savings and Departmental Pay Out $285,000. Depositors in two closed banks-the North Capitol Savings and the Departmental-lined up today in front of the institutions to receive payments totaling $285,000. At 6 a.m. the line started forming in front of the North Capitol street bank and before the doors opened at 9 o'clock 500 depositors were on hand. Today's payment marked the first release of funds since the bank closed last July. pay out to $125,000 Altogether. the approximately institution 6,000 will depositors. or about 1212 cents on the dollar. There was not quite so great a rush at the Departmental Bank, however, that institution having made an earlier payment of 30 per cent in February. The fact the bank will remain open until 9 p.m. tonight, tomorrow night and Wednesday night also prevented a rush, according to Receiver W. B. Allman. This second payment by the Departmental will aggregate $160,000, or 20 per cent of approved claims, and will be distributed to approximately 4,000 depositors. Receiver John S. Bryan of the North Capitol Street Savings Bank estimated his staff of paying tellers would hand out checks to more than 1,000 depositors today. The bank will close its doors at the usual hour of 3 p.m., but all those who are lucky enough to get inside the bank by that time will be paid off. One other insolvent Washington institution, the Bank of Brightwood, at Georgia and Colorado avenues, is expected to release its second payment within the next 30 days. Depositors will be notified through the newspapers as to the exact date, it was said at the Treasury Department. Further Progress Reported. Further progress was reported today by officials of the Northeast Savings Bank, at Eighth and H streets, in their efforts to sell 10.000 shares of common stock at $10 par value and raise sufficient new capital to reopen the institution. It was announced that 7,300 shares have now been subscribed as a result of the three-week intensive campaign which has been carried on among the officers, stockholders and depositors in the bank. While there has been a slowing up in the number of stock subscriptions, the officials are still very hopeful of getting the savings bank back on its feet. The bank's 15 directors have already put up $230,000 in cash to meet the emergency and have obligated themselves to contribute $110,000 more in connection with the reorganization plan. Much of this money was put up before the bank closed, in an effort to strengthen the bond account.
8.May 6, 1933The Washington HeraldWashington, DC
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PROGRESS SEEN INREOPENING OF DISTRICT BANKS
Stockholders and Depositors Are Backing Reorganization Plans Being Offered Them
By RICHARD HATTON While little information has been available regarding the closed banks of Washington and while the Treasury Department has not as yet made any public statement regarding the local situation there has not been lack. ing determined effort upon the part of officials of closed institutions to evolve plans for reopening and progress has been made charge of number of the institutions being liquidated. More activity has been in the affairs of receivership banks than in those of conservator banks but both classc of institutions are probably suffering from the lack of exhortation anterooms of the Treasury. Stockholders of the Franklin National Bank yesterday appeared to be enthusiastic over the reorganization plan just announced by that institution and there every for believing that, if the Treasury approves, the plan will ultimately be carried though successfully. MANY DEPOSITORS AGREE Yesterday the services of several directors of the Franklin as well as those of the officers were required to handle the long line of de ositors appearing to sign agreements which it is believed will permit the reopening of the bank. Many of these depositors were enthusiastic in their support of the outlined in letters previously sent out by the bank. Stockholders appeared to be perfectly willing to agree to waive 33 1-3 per cent of their deposits on March 14 leaving the balance available for regular transactions, according to the plan. For this 33 1-3 per cent waived all assets not accepted by the reorganized bank will trusteed and participating certificates for the amounts waived be issued to be paid off out of realization upon assets as fast as they become available. Stockholders are also purchasing stock in bank equal to 6 per cent of their deposits on March 14. WAIT TREASURY WORD
With stock stopped after 75 per cent of the required amount had been subscribed and with every assurance that total amount can easily be obtained, the Potomac Savings Bank is only awaiting some word from the Treasury to carry out its plan of reorganization. Meanwhile Receiver J. S. Bryan of the North Capitol Bank has paid out about $90,000 to depositors; the Northeast Savings Bank in charge of President George F Hoover has sold 7,600 of the 10,000 shares required for reorganization; pay ments have been made to depositors of the Bank of Bright wood by Claude H the Departmental Bank by Receiver W. B. Allman and the International Exchange Bank by Receiver T. Dinger and all of these institutions are working toward another percent age payment. The one big mystery among the receivership banks the Park Savings. As institution there no information available and even sensational rumor seems to have dried up.
9.November 1, 1933The Free Lance-StarFredericksburg, VA
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HAMILTON NAMED
Portsmouth Publisher to Aid in Liquidation of
Washington Banks.
WASHINGTON Nov. Comptroller the Currency, announced today that Cary Hardee, former Florida, Norman R. Hamilton, Virginia publisher, had been appointed liquidate District Columbia banks now operated The Comptroller explained the constructive, designed hasten payment depositors from assets remaining after other District banks took over part of business of the banks to liquidated. The eight local institutions are the Federal American National Bank, the Chevy Chase Savings Bank, District National Bank. the Northeast Savings Bank, the Seventh Street Savings Bank, the Washington Bank, the Savings Bank and the tomac Savings Bank. Harder Governor of Florida from 1921 1925. Hamilton, publisher of the Portsmouth, Star, born reared in Virginia. For several years he has been director of bank Norfolk, Va., and now director of the Mutual Building Association there. From 1913 1922 collector of customs News, representing both the Treasury and State enforcing laws Virginia waters. In this position was virtually the head of business with annual income approximately $5,000,000. Under tentative plans, the FedAmerican Chevy Savings Banks be Chase charge Hardee; while Hamilton will take charge the District National, Northeast Savings, enth Street Savings, Washington Savings, and the Potomac Savings Banks. assumed duties Hardee Hamilton was today, until Nopected Washington vember O'Connor said the Comptroller two receivers eight was to minimize stead pense.
10.November 8, 1933Evening StarWashington, DC
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BANK DEPOSITORS ARE REASSURED O'Connor Promises Orderly Marketing of Assets of Eight Institutions. Controller of the Currency J. F. T. O'Connor, in a formal statement today, announced that appointment of receivers for banks in this city "does not mean that the assets of such institutions will be thrown upon the market indiscriminately." The controller's statement was made in response to many requests concerning the policy to be carried out by the two receivers recently appointed to liquidate the assets of eight banks here. "In the first place," the controller pointed out, "it is obviously impossible to throw assets on the market at once. Moreover, even if this could be done, it would be poor policy, since the controller, acting in the capacity of trustee, has the duty of realizing as much as possible for creditors." In this connection. the controller pointed out that his position on this point was made clear in his speech to the American Bankers' Association last September 7. Minimum Expense Promised. Mr. O'Conner also called attention to the fact an orderly liquidation will be accomplished at a minimum expense. The average cost of liquidating national banks, he added, has been 3.9 per cent of book value and 6.65 per cent of actual collections. These percentages, he said, are much lower than found in "ordinary receiverships." Under the law it was necessary to appoint receivers to replace conservators, the controller pointed out, "in order that proper notice to creditors could be given and the trust finally liquidated. The controller in these cases," he continued, "has no option. He must appoint receivers." This interpretation of policy was designed particularly to apply to the operation of receiverships to which the controller recently appointed Cary Hardee of Florida and Norman R. Hamilton, Portsmouth, Va. Will Distribute Checks. Mr. Hardee, who was former Governor of Florida, is liquidating two banks here. the Federal American National Bank & Trust Co., which he has already taken over, and the Chevy Chase Savings Bank, of which he soon will assume charge. Mr. Hamilton yesterday took over the District National Bank and soon also will take charge of these institutions: Potomac Savings Bank, Washington Savings Bank, Northeast Savings Bank, Woodridge-Langdon Savings & Commercial Bank and the Seventh Street Savings Bank. Meantime, Controller O'Connor announced that Robert C. Baldwin, receiver of the Commercial National Bank, will start distribution of checks in payment of the second dividend to depositors next Monday. This will be for 30 per cent, and will be available to 34,000 depositors. When distribution of this 30 per cent is completed it will make a total of 50 per cent paid to the creditors of this bank in the aggregate amount of $3,000,000.
11.November 16, 1933The Washington TimesWashington, DC
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RECEIVERS GET BANK ASSETS Liquidation of the assets of closed Washington banks proceeded a step further today when two recently appointed receivers began taking over assets of the Chevy Chase and Northeast Savings banks. Cary A. Hardee, former governor of Florida, and Norman Hamilton, Virginia publisher, were named two weeks ago as receivers for the eight Washington banks in conservatorship. Earlier in the week Governor Hardee completed his task of taking over assets of the FederalAmerican National Bank and yesterday Hamilton receipted for the assets of the District National Bank. Today Hardee was directed to take over the Chevy Chase Savings Bank and Hamilton was instructed to take over the Northeast Savings Bank. The physical transfer of the assets will require about one week.
12.December 14, 1933Evening StarWashington, DC
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M'LEAN APPOINTED TOD. C. BANK POST Former Governor of North Carolina to Aid Liquidation in Capital. Angus W. McLean. former Governor of North Carolina, who has been practicing law here for about six months, today was appointed by Controller of the Currency J. F. T. O'Connor to be attorney for the six Washington banks now being liquidated by Receiver Norman R. Hamilton. Mr. McLean is the third prominent public figure to be brought into the Washington closed bank situation. Mr. Hamilton, who has already taken over three of the six local banks which he is to liquidate, was appointed from Portsmouth, Va., where he is the publisher of the Portsmouth Star. Former Gov. Cary Hardee of Florida has taken charge of liquidation of the remaining assets of two banks. the old FederalAmerican National Bank & Trust Co. and the Chevy Chase Savings Bank. The six institutions which will be served by former Gov. McLean as attorney are the District National Bank, the Northeast Savings Bank and the Washington Savings Bank, which have been taken over officially by Receiver Hamilton, and these three others: Seventh Street Savings, Woodridge-Langdon Savings & Commercial and the Potomac Savings Bank. In announcing McLean's appointment, a statement from the office of the controller said: "Mr. McLean brings to his new duties a wealth of experience as a lawyer and as a public servant. A practicing lawyer in his native State for the past 30 years, he was chosen president of the North Carolina Bar Association in 1920. During the World War and for two years thereafter he was director and then managing director of the War Finance Corporation in Washington. "Mr. McLean also served during 1920 and 1921 as Assistant Secretary of the Treasury, in charge of customs, internal revenue, prohibition enforcement f and secret service. Throughout the I same period he also served as chairman 1 of the Railway Loan Advisory Committee, for Secretary of the Treasury D. F. Houston. "From 1925 to 1929, Mr. McLean was Governor of North Carolino. "He has maintained, with his associates, law offices in Lumberton and Raleigh, N. C., for many years. while he established a law office in the : Southern Building here about six months ago. He has been in active practice here since then." Mr. McLean took over his new duties as attorney for Hamilton today. Headquarters for liquidation of the six banks is in the District National Bank Building on G street near Fourteenth.
13.May 1, 1934The Washington TimesWashington, DC
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Mary Rasmussen, appellant vs. Norman R. Hamilton, as receiver of Northeast Savings Bank and J. F. T. O'Connor. Mandamus. 1. The depositor of a failed banking corporation doing business in the District of Columbia cannot compel the Comptroller of the Currency or his agent, the conservator or receiver, by mandamus proceedings, to permit an examination by such depositor of the books and records of the bank in custody of the Comptroller through his said agent. No. 6132. Decided April 30, 1934. Before Martin, Chief Justice, and Robb, Van Orsdel, Hitz and Groner, Associate Justices, on appeal from the Supreme Court of the District of Columbia. Affirmed. Jesse C. Duke, for the appellant. Leslie C. Garnett, U. S. Attorney; John W. Fihelly, Assistant U. S. Attorney; Charles E. Wainwright and Angus W. McLean, of Treasury, counsel for the appellees. Chief Justice Martin rendered the following opinon: An appeal from an order and decree dismissing a petition for mandamus. It appears that on March 4, 1933, the Northeast Savings Bank, a banking corporation then doing business in the District of Columbia, closed its doors, remaining closed after the President's proclamation of March 6, and never thereafter resumed its normal banking functions. On March 14, 1933, a conservator was appointed by the Comptroller of the Currency under the provisions of the bank conservation act of March 9, 1933. On November 15, 1933, a receiver was appointed for the bank and was substituted for the conservator as respondent in this case. On Septermer 21, 1933, the petitioner filed a petition for mandamus against the conservator
14.June 17, 1934Evening StarWashington, DC
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Lean, who is general counsel for the receiver of five of the closed Washington banks which joined the Hamilton National Bank. Prior to entering the legal department of the controller's office, Mr. Wainwright was associated in the general practice of law with Charles V. Imlay. In the controller's office Mr. Wainwright represented the Government in collecting more than $400,000 from bonding companies liable on fidelity surety bonds of defaulting officers and employes of failed local banks. In his new position Mr. Wainwright will have a large part of the legal work regarding liquidation of the District National Bank, the Northeast Savings Bank, the Potomac Savings
15.July 8, 1934Evening StarWashington, DC
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MANY TO BENEFIT BYLEVY ON BANKS Depositors Will Gain by 100 Pct. Assessment on Stockholders. Thousands of depositors are expecting to benefit from the 100 per cent assessment which Controller of the Currency O'Connor yesterday levied on 1,343 stockholders in five local banks. The exact number of these depositors was not available last night, but it is known to run into the thousands. None of these depositors has received more than 50 per cent dividend so far on the deposits which were tied up when the five banks failed to re-open at the close of the bank holiday. News that the controller had levied the assessment fell as a shock upon the stockholders. but it was greeted by depositors with hope that when the receivers collect all that is possible, there will be further dividends available for creditors. Amounts Involved Uncertain. There is no way of computing at this time how much the receivers will be able to collect from the stockholders, nor how much will be available for the depositors, nor when it will be available. Some of the banks are known to be in better condition than others, although up to the present time they have all paid the same dividend-50 per cent. The banks whose receivers now will proceed to collect the assessment where possible are: The Federal-American National Bank and Trust Co., in the hands of Receiver Cary A. Hardee, who already has advertised official notice to collect $2,000,000 from 642 stockholders. Four other banks in the hands of Norman R. Hamilton, who will attempt to collect as follows: District National Bank, $1,000,000 from 325 stockholders; Potomac Savings Bank, $140,000 from 68 stockholders: Northeast Savings Bank, $100,000 from 185 stockholders, and Seventh Street Savings Bank, $100,000 from 123 stockholders. The assessments aggregate $3.340.000 divided among a total of 1,343 stockholders. Threats of Bankruptcy. Announcement of the assessment was greeted yesterday in some quarters with threats of some stockholders to go into bankruptcy. Should they carry out this threat, it is understood the Government's receivers would have to take place alongside all other (Continued on Page 2, Column 8.)
16.August 13, 1934Evening StarWashington, DC
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$3,340,000 IS DUE ON BANKS' SHARES 1,343 Stockholders Must Make One-Fourth Payments Today. Assessments totaling $3,340,000 against 1,343 stockholders of five insolvent banks in the District fell due today, covering one-fourth of the 100 per cent assessment. Checks in the mail, postmarked up to midnight, will be accepted by the two receivers, as paid on time, they explained, but all payments after that will carry interest at 6 per cent. Cary A. Hardee, receiver for the Federal-American National Bank & Trust Co., the largest bank in receivership, stated early today that payments so far had been much more than had been expected. In this bank the assessment of $2,000,000, equal to the capital stock of the bank, has been levied against 642 shareholders. The receivership is located at Fifteenth and H streets. In the case of the next largest bank, the District National Bank, a group of 67 stockholders holding 2,235 shares out of the total of 10,000 shares, less than one-fourth, has filed suit for an injunction to prevent collection of the assessment. But payments from other stockholders not fighting the assessment have been coming in in "quite a number," according to Norman R. Hamilton, receiver. Some stockholders in the District bank have paid in he the first installment, full, paid explained, while others explaining have that the other three installments will be paid when they fall due in September, October and November, on the 13th of each month. There are 325 stockholders in the District Bank, 67 of whom joined in the suit filed Saturday. The total assessment is for $1,000,000 in the case of this bank. Other banks against whose stockholders assessments have been filed are in the hands of Receiver Hamilton. These institutions, the amount of their assessments and number of stockholders are as follows: Potomac Savings Bank, $140,000 against 68 stockholders; Northeast Savings Bank, $100,000 against 185 stockholders; Seventh Street Savings Bank, $100,000 against 123 stockholders.
17.October 22, 1934Evening StarWashington, DC
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C.BANKERS BUSY AS SESSION OPENS Main Committees Rushed. Convention Throng Pours Into Washington. BY EDWARD C. STONE. Every bank official in Washington who could be spared from his own institution during business hours, was attending the opening session of the sixtieth annual convention of the American Bankers' Association, which opened here today A good many had no chance to attend meetings, as they were chairmen or members of the important committees which ar. ranged for the big four-day gathering and were swamped with work as the financiers poured into Washington. H H. McKee. general convention chairman; Lanier P McLachlen. chairman of the Hotel Committee: Charles H. Doing chairman of registration: C H Pope. golf chairman and F H Siddons president of the District Bankers Association, which is entertaining the visitors, v all on hand early Their assistants were equally energetic. Robert Fleming second vice president of the national association had several important conferences with A. B A leaders. Several Washington bankers are members of this year's A B. A. com mittees. which are now completing their year's work. Mr Fleming an ex-officio member of the Executive Council Mr McKee is on the same council as representative of the District Bankers' Association George O. Vass is a member of the A B A Code Committee G. H Pope is one of the State vice presidents, representing the local association. Other Bankers Take Part. Victor B Deyber is member of the National Bank Division's Legislativ Committee. also member of the same division's Committee on Rela Sys Reserve Federal the with tions tem. as well as being one of the State vice presidents for the same section Francis G Addison, jr is active in the savings division being vice president for the District of Columbia. Lanier P McLachlen is a State vice president for the District in the State is bank division, while Ord Preston the representative of the District Bankers Association as State vice division. trust the president Local bankers expressed keen interest today in the optimistic statements made by President Francis M. Law just before the business sessions opened. He declares the time has come for bankers to show more confidence in the bus future The public cannot be forced to borrow money but the fact that plenty of money is available for all sound loans can be stressed more than it has been in recent months, he says. Law Praises U. S. Bonds. Mr Law gave it as his opinion that bankers generally feel that the securities of the United States Government "are the best estment on the face of the earth He declared today that bankers from other parts of the country who have arrived for the convention have reported that sentiment and business have improved markedly during the past month. Personally, he feels that private banking system can best develop the country's business interests and is opposed to any kind of Government-controlled central bank. He points with pride to the debt made dur been which have ing the past five years. Most of these is were speculative debts, he says. It up to the business men to decide whether they wish to use the vast amount of bank credit now available for expansion purposes. Mr Law made many other pre-convention obwere which servations, heartily ceived by Washington's financi leaders Both idle men and idle money must be put to work. he says. Bankers here found personal friends from all parts of the country in the lobbies of the hotels. It was like a big old home week today Baltz on Convention Board. E. C Baltz. secretary of the Perpetual Building Association. has been appointed a member of the Resolutions Committee for the convention of the United States Building and Loan League in New Orleans, October 24. 25 and 26. of the appointment came today from Philip Lieber of Shreveport, president of the league The committee is expected to deal with some of the more important phases of 1935 home-lending policy in the final resolutions presented to the convention will also have its say on matters of home taxation Mr Baltz is the director of the league in district 5, which includes the 13 States south of Pennsylvania and the Ohio River and east of the Mississippi. Credit Union Checks Exempt. The Treasury Department's ruling exempting Credit Union checks in the District of Columbia from taxation will increase dividends of the larger unions as much as 10 per cent in the opinion of Edgar Graham of Treasury Union No 262. Mr Graham also envisaged considerable savings to the smaller credit unions in the District where there now are 24, many which were sponsored by the District federation The exemption was made possible through the Co-operative Credit League. of which Mr Graham is president. He pointed out that the ruling affects only those unions organized under District of Columbia laws. Bank Starts Second Payment. Norman R. Hamilton. receiver for the Northeast Savings Bank. today started distribution of an additional 25 per cent dividend to 6.458 depositors, involving $263.448 This will bring the payments up to 75 per cent Notices were sent to depositors telling them when to appear at the bank at Eighth and H streets northeast to get their money, such action being necessary to prevent too much of jam at one time The Northeast Savings Bank is now a branch of the Hamilton National Bank daily carrying on 100 per cent banking operations. The bank is being kept open from 8:30 to p.m for the payment of the checks. Today's Trading on Exchange. The Washington Stock Exchange must have been overcome by the convention of the American Bankers' Association today Business was practically at standstill Trading was
18.October 23, 1934The Washington TimesWashington, DC
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Northeast Bank Payments Start Payment of an additional 25 per cent dividend to depositors of the Northeast Savings Bank started yesterday and will continue at the office of the receiver, Norman B. Hamilton. at Eighth and H Sts. N. E., daily between the hours of 8:30 a. m. and 5 p. m., until the disbursement is complete. This payment will bring the amount received by depositors to 75 per cent. About $263,000 is involved, affectiing approximately 6,458 depositors.
19.July 14, 1936The Washington TimesWashington, DC
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RECEIVERSHIPS CHANGE HANDS Norman R. Hamilton has been succeeded as receiver for the District National Bank by Justus S. Wardell. The final report issued by Hamilton yesterday estimates value of remaining assets at $2,314,598.19. More than $1,000,000 has been paid on a total RFC loan of $1,193,641.72. Further dividends to depositors are not likely until pending court actions are disposed of. Hamilton has also turned over to Wardell the receiverships of the Potomac Savings Bank, the Northeast Savings Bank, the Seventh Street Savings Bank and the Washington Savings Bank, all still in process of liquidation.
20.November 28, 1936Evening StarWashington, DC
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2 CLOSED BANKS TO PAY $1,500,000 BEFORE CHRISTMAS 1,900 to Share in Dividends of District National and Northeast Savings. DATES FOR PAYMENT NOT SET DEFINITELY. 25 Per Cent and 10 Per Cent Sharing Is Expected to Bolster Yule Trade. Dividends of 25 and 10 per cent, respectively, will be paid before Christmas from the closed District National Bank and the closed Northeast Savings Bank, it was announced today by Receiver Justice S. Wardell, in charge of both institutions. The exact date when the dividends will be available to depositors has not been decided, but Receiver Warded estimated it would be between December 10 and December 15 in each case. The 25 per cent dividend from the District National Bank will be paid to about 12,000 depositors at the old bank, 1406 G street, and will be in the amount of $1,250,000. The 10 per cent dividend from the Northeast Savings Bank will go LO about 7,000 depositors in the amount of about $250,000. It will be paid at the old bank location, Eighth and H streets northeast, which is now operated as a branch of the Hamilton National Bank. The total payments of $1,500,000 probably will have a substantial effect on Christmas trade in the Capital. The District National Bank paid 50 per cent to its depositors in one dividend in September, 1933. The Northeast Savings Bank has paid 85 per cent in a series of different dividends, so that the additional 10 per cent will bring the total amount received by the depositors up to 95 per cent of the deposits at the time the bank closed in March, 1933. Payment Authoized. Payment of the dividends announced today has been officially authorized by Controller of the Currency J. F. T. O'Connor. In the case of the District Bank, depositors had been paid on the basis of the first 50 per cent dividend a total of $1,937,100.91, according to the last quarterly report of the receiver as of September, 1936. The 5 total amount on the books when the S bank closed, representing depositors accounts, was $4,841,414.78. e The amount paid out to secured depositors by this bank since its closing is $2,509,082.75. Stockholders have paid a total of $574,378.54 on their 100 per cent assessment against a total capital stock of $1,000,000. A battle in the courts brought by some stockholders to contest the right of the receiver to col. lect the assessment against bank stockholders was won by the receiver. I In the case of the Northeast Bank, i depositors have received $903,484.44. The unsecured deposits in this bank : when it suspended in March, 1933, totalled $1,148,596.28. Stockholders in this institution have paid in $42,100 on their stock as. sessment of $100,000. I
21.December 13, 1936Evening StarWashington, DC
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BANK HOURS LONGER TO AID DEPOSITORS Receiver Wardell of District National Announces 8:30 A.M. to 5 P.M. Opening. In order to help depositors who have been unable to reach the office during previous office hours, Justus S. Wardell, receiver of the District National Bank, announced last night that the hours will be extended beginning tomorrow to keep the doors open from 8:30 a.m. to 5 p.m. daily at 1406 G street, About 600 checks were distributed to depositors yesterday, he pointed out, and an even larger number on Friday. The District National Bank is paying another dividend of 25 per cent, which in addition to the original 50 per cent, brings total dividends from this institution up to 75 per-cent. The temporary office of the receiver at the Northeast Savings Bank will be maintained at Eighth and H streets northeast for some time, Wardell explained, in order to make it easier for people in that vicinity to get their checks of an additional 10 per cent dividend for Christmas shopping. Depositors in the Northeast Savings Bank have thus received 95 per cent of their deposits. The hours there are from 8:30 to 5 p.m. The regular office of the receiver for the Northeast Bank is at 1406 G street.
22.December 21, 1936The Washington TimesWashington, DC
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Northeast Savings Paying Dividend At G St. Office Distribution of the current dividend by the closed Northeast Savings Bank will be continued at the home office at 1406 G St. N. W., it was learned today. For about ten days distribution has been going on at Eighth and H Sts. N. E., but all depositors who did not call for their dividends by Saturday will have to go to the G Street office. Justus S. Wardell is the receiver of the closed bank.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
