Departmental Bank (Washington, DC)

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DEPARTMENTAL BANK CLOSED BY DIRECTORS Suspension Is Ordered as Precautionary Measure-Controller Takes Charge of Institution. The Departmental Bank, 1726 Pennsylvania avenue, today was in the hands of the controller of the currency, the directors having decided late yesterday to suspend operations as a precautionary measure. W. N. Taylor, national bank examiner is in charge. In announcing the action, the following statement was issued by the bank: "At a special meeting of the board of directors of the Departmental Bank held late this afternoon, it was unanimously decided to suspend operations and turn the affairs of the bank over to the controller of the currency. "This action was wholly voluntary on the part of the bank and was taken purely as a precautionary measure, in view of the recent closing of several local banking concerns." J. T. Exnicios is president of the bank. The controller's call on June 30, showed deposits of $1,181,886.32. John R. Hawkins, president of the Prudential Bank, 717 Florida avenue, told The Star today that groundless fears had been expressed by some of the patrons of his institution, and requested that publicity be given to the statement that the bank is in excellent condition.

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DEPARTMENTAL BANK CLOSED The Departmental Bank, 1726 Pennsylvania Ave., has suspended operations, bringing the total to four local institutions which have closed their doors in two days. Notice of the Departmental Bank's suspension was given by the board of directors in a statement, which said: "This action was wholly voluntary on the part of the bank, and was taken purely as a precautionary measure, in view of the recent closing of several local banking concerns." W. M. Taylor, bank examiner, is in charge of the institution. The North Capitol Savings Bank, the International Exchange Bank closed yesterday, and the Bank of Brightwood, Wednesday.

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NEW BANKING HOURS Departmental to Remain Open Pay Day Nights. The receivers for the Departmental Bank announced today the bank would remain open until 8 p.m. each Government pay day to receive payments on notes. Heretofore, since the receivership began, the bank, which remains open from 8:30 a.m. to 5 p.m. each day during the week, has made Monday night the "late night," but it was decided to change this to the night of each Government pay day.

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DEPARTMENTAL BANK TO OPEN FOR CLAIMS For Three Months, Beginning Friday, Depositors May File Bills. The Departmental Bank, 1726 Pennsylvania avenue, which closed July 14, will be opened at 8:30 a.m. Friday to enable depositors to file bills of claim, W. B. Allman, receiver for the bank, announced yesterday. The institution will close at 9 p.m. The same hours will be observed on Saturday. For three months, beginning Friday. depositors may file claims. On week days the hours will be 8:30 a.m. to 5 p.m., and on Saturdays, 9 to 1. The bank went into the hands of the controller of the currency July 14 when its directors decided to suspend operations as a precautionary measure.

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DEPOSITORS FILE CLAIMS AT DEPARTMENTAL BANK Institute, Closed Since July 14, Opens Today With 100 Persons in Line. Opening for depositors to file bills of claim, the Departmental Bank, which closed July 14, today was handling hundreds of depositors. The bank opened at 8:30 a.m. with a line of more than 100 persons waiting to file their claims, and throughout the day clerks were busy taking care of depositors. It will remain open until 9 p.m. and have the same hours tomorrow. Depositors have three months in which to file claims and after this week end the bank hours will be from 8:30 until 5 on every day but Saturday, when the hours will be from 8:30 until 1. it was announced by W. B. Allman, receiver of the bank.

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BANK INVESTORS GET DEFICIT BILL Shareholders Ordered to Meet Assessments for Departmental November 25. W. B. Allman, receiver for the Departmental Bank, 1726 Pennsylvania avenue, which suspended. operations July 15 last, issued a call to shareholders of the institution today to arrange for payment of 100 per cent assessments on or before November 25. The assessment on the shareholders was levied October 18 under authority of the controller of currency of the Federal Government, and was made for the protection of the depositors of the bank. Assessments Total $106,060. There are approximately 3,000 shareholders affected by the order, and their assessments aggregate approximately $106,060. The full payment of the assessments is due November 25. For the convenience of shareholders employed during the regular hours of the day, the bank will remain open until 10 p.m. November 25. While full payment of the assessment is due next week, shareholders, by signing an agreement before November 25, are given the right to make the payments in four monthly installments, ending February 25, Mr. Allman said. The Departmental Bank operated under a charter granted by the State of Arizona, but was subject to the rules of the National Banking Association and under the control of the Federal controller of the currency. Depositors File Claims. The shareholders of the institution were subject to double liability in case of failure of the bank. A statement of the condition of the bank for the quarter year ended September 30 showed the total of all assets coming into the hands of the receiver up to that date amounted to $1,118,867.65. The total assets uncollected up to that date were $949,606.82 and the total of all liabilities was $906,937.20, while cash on hand at that time totaled $121,041.51. Depositors are being given an opportunity to file claims for payment by the institution.

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TWO MORE BANKS TO PAY DEPOSITORS Departmental and Brightwood Institutions Paying Out $375,000. While depositors crowded into two suspended Washington banks today to collect the first payment on their claims. Acting Controller of the Currency F. G. Awalt announced two other defunct local banks would issue payments as soon as money in hand permits. The Departmental Bank, 1726 Pennsylvania avenue, and the Bank of Brightwood, Georgia and Colorado avenues, are paying approximately 7,500 depositors a total of $375,000. Two Other Institutions. The International Exchange Bank, Fifth and H streets, and the North Capitol Savings Bank, at H and North Capitol streets, are the two institutions which Awalt said would make an initial payment on approved claims as soon as enough money is collected. All four banks closed last July. The doors of both the Departmental and Brightwood banks were opened this morning at 8:30 o'clock to distribute checks to depositors. Approximately $220,000 is being paid to 3,444 depositors in the Departmental Bank, while the Brightwood institution is distributing checks totaling $155,000 to about 4,000. To Be Open at Night. To expedite distribution of the money, the Departmental Bank will remain open tonight and tomorrow night until 9 o'clock, resuming the regular hours of from 8:30 to 5 beginning Monday. The Bank of Brightwood will be open until 5 o'clock tonight and all day tomorrow until 5. A steady line of men and women filed into both banks throughout this morning, able to draw money for the first time since the institutions closed last July. At the Departmental depositors were being paid 30 per cent of their claims, while at Brightwood 20 per cent was being paid. Additional payments will be made by both banks as liquidation progresses and cash in hand permits, it was said by officials.

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RECEIVERS PAY BANK TOLLS Claude H. Woodward and W. B. Allman, receivers, respectively, for the Bank of Brightwood and the Departmental Bank, closed last July by the Comptroller of the Currency, today began paying the first dividend of about $375,000 to the 7,500 depositors. Bank of Brightwood depositors will receive 20 per cent and Departmental Bank depositors will receive 30 per cent of their approved claims in this installment. Depositors must have their receiver certificates in person at the time of payment. The Bank of Brightwood will be open today until 5 p. m. and tomorrow and Monday from 8:30 a. m. until 5 p. m. The Departmental Bank will be open until 9 p. m. today and tomorrow and from 8:30 to 5 p. m. next week. Further payments will be made from time to time, as the receivers realize on assets.

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FREES PLAN $285,000 TO LOCAL PATRONS Departmental and North Capitol Ready to Release "Frozen" Accounts Dividends amounting to $285,000 will be paid out Monday by the Departmental Bank and the North Capitol Savings Bank, both closed institutions. The Departmental Bank will pay its second dividend. This time the amount will be $160,000 or about 20 per cent, W. B. Allman, receiver stated. The North Capitol Savings Bank will pay its first dividend of $125,000. To Stay Open Late The Departmental Bank. Allman said,will be open for the convenience of Government workers from 8:30 a. m. to 9 p. m., Monday, Tuesday and Wednesday. Persons unable to call at the bank these days will be able to collect their checks during the regular business hours. About 4.000 checks will be paid out, Allman said. The second dividend payment brings the total paid back to depositors to about $400,000. When the bank suspended the book value of assets was $1,100,000. Payment of the first dividends to of the depositors closed North Capitol Savings Bank, amounting to $125,000, or 12 1/2 per cent, are to be made beginning Monday at 9 a. m.. John S. Ryan, receiver, announced today. 6,000 Checks Ready Six thousand checks are ready for distribution to depostiors of the bank, which closed its dcors last July 14. Regular banking hours are to be observed and only those persons living out of the city will be able to get their dividend checks by mail. All others will be required to call at the bank and sign receipts for the money, Ryan said. As added funds are accumulated from liquidation of the bank's assets further dividends will be declared when the sums have reached sufficient size, he said.

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DEPARTMENTAL BANK TO PAY THIRD TIME 15 Per Cent Dividend Will Make 65 Per Cent Total Paid Depositors Since Closing. The Departmental Savings Bank, 1726 Pennsylvania avenue, which closed 11 months ago yesterday, will pay a third dividend of 15 per cent on Saturday, W. B. Allman, receiver for the institution, announced yesterday. Previously the bank paid two other dividends totaling 50 per cent of deposits. The bank will be open from 8:30 a.m. to 9 p.m. on Saturday. For the benefit of Government workers these hours will be repeated on Monday and Tuesday. After that the regular banking hours will be observed. Depositors must bring their receiver's certificates to obtain the dividend.

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Departmental Bank Pays Fourth Dividend As the Departmental Bank began paying out its fourth dividend this morning, W. B. Allman, receiver, warned depositors that they must present receiver's certificates at the teller's windows before they can receive their comptroller's checks. All windows of the bank will be open today until 5:30 p. m. and will continue so through Saturday for convenience of Government employes.

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BILL WOULD AID DEPOSITORS (Continued from Page 1) witnesses from Detroit to testify in its behalf. Potomac Bank Moves Another development in the closed bank field today was the physical transfer of the Potomac Savings Bank to the District National Bank Building. Quarters of the Potomac Institution were taken over as a branch of the Hamilton National Bank. Since then it has been occupying offices formerly used by the closed Departmental Bank. The move brings into the District National Bank Building three of the five closed banks of which Norman Hamilton is receiver. Mr. Hamilton stated that the others would move in as soon as possible. Almost 30 million dollars belonging to the people of the District of Columbia still is tied up in closed banks, it was learned today from the office of the Comptroller of the Currency. Nineteen banks are closed, so far as the official record goes, although seven listed are included in the group which made up the Hamilton National Bank merger. Many Depositors Involved How many depositors are involved the comptroller's office is unable to estimate. Opinion in local financia circles was that provisions of the bill of Representative Clarence J. McLeod (R.) of Michigan will affect District the

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DEPARTMENTAL BANK TO PAY 10 PCT

MORE Depositors in the long-defunct Departmental Bank will receive a fifth dividend, amounting to 10 per cent of their original deposits, next Monday. In making this announcement today, John F. Moran, receiver of the bank, pointed out that the dividend will bring the total payoff so far to 80 per cent of the deposits. About $720,000 has been made available so far, he said, and the present dividend will increase the amount to $800,000. About 4,000 depositors will receive $80,000 in next Monday's pay-off. Checks will not be mailed to those residing in the District, but will be distributed in Mr. Moran's office in the Park Savings Bank, of which he is also the receiver. The bank is at Fourteenth and Kenyon Streets Northwest. The Departmental Bank closed its doors on July 14, 1932, with a deposit liability of $952,000. It has since made the largest repayment of deposits of any closed bank in the District, Mr. Moran stated.

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BANK DOORS TO REMAIN OPEN FRIDAY EVENING Change Announced to Facilitate Receipt of Departmental 10 Per Cent Dividends. For the benefit of Departmental Bank depositors, who have been unable to get to the Park Savings Bank, Fourteenth and Kenyon streets, during banking hours to get their additional dividend of 10 per cent, John F. Moran, receiver for both banks, announced today the doors will remain open until 8 p.m. Friday.

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DEPARTMENTAL BANK DISTRIBUTES DIVIDEND Five Per Cent to Be Given More Than 4,000 Depositors in Closed Institution. The closed Departmental Bank will begin distribution of a 5 per cent dividend to more than 4,000 depositors tomorrow at 9 a.m. at the old Park Savings Bank, Fourteenth and Kenyon streets N.W. The distributing office will be open from 9 a.m. to 5 p.m. tomorrow and Tuesday, and will remain open until 8 p.m. Wednesday and Thursday, according to Receiver John F. Moran. The $38,000 to be distributed will bring the total refund dividends up to 85 per cent.

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CAPITOL SAVINGS BANK WILL DISBURSE $60,000 Distribution of 6 1/4 Per Cent Dividend to Depositors Will Start Tomorrow. Distribution of a 61/4 per cent dividend, the third since the institution closed, will start tomorrow for depositors of the North Capitol Savings Bank, Receiver John F. Moran announced today. Some $60,000 will be disbursed to more than 5,800 depositors. The payments will be made between 9 a.m. and 8 p.m. tomorrow and Thursday at the Park Savings Bank Building, Fourteenth and Kenyon streets N.W. The closed Departmental Bank started paying a 5 per cent dividend to more than 4,000 depositors yesterday.

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Bank Starts Paying $60,000. Receiver John F. Moran of the North Capitol Savings Bank started payment today of a 6 1/4 per cent dividend to more than 5.800 depositors. The present disbursement amounts to about $60,000. The payment is being made at the old Park Savings Bank Building, Fourteenth and Kenyon streets N.W. The old Departmental Bank, which is in charge of the same receiver, began the payment Monday of a 5 per cent dividend to 4,000 former depositors. In the distribution $38,000 is involved, and it brings total payments to date to 85 per cent.

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MORAN, BANKS' RECEIVER, MOVES OFFICE John F. Moran, receiver for four banks, has moved his offices from the old Park Savings Bank Building, at Fourteenth and Kenyon streets, to the Brightwood Bank Building, at 5913 Georgia avenue, where he will be ready for business tomorrow morning. The four banks in charge of Receiver Moran are Park Savings, Departmental Bank, North Capitol Savings Bank and Prudential Bank. The old Park Savings Bank was vacated because it was sold to the Gulf Oil Corp., which will demolish it for a new service station, as announced months ago.