1790. Potomac Savings Bank (Washington, DC)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
savings bank
Start Date
March 5, 1933
Location
Washington, District of Columbia (38.895, -77.036)

Metadata

Model
gpt-5-mini
Short Digest
c151da90b080a0b6

Response Measures

None

Description

The Potomac Savings Bank was closed during the March 1933 banking holiday (suspension) and subsequently reopened/operated as a branch of the Hamilton National (conservator/merger). It remained in receivership/liquidation for years, with assessments on stockholders and continuing dividend payments to depositors. No explicit contemporaneous depositor run is described in the articles.

Events (5)
1. March 5, 1933 Suspension
Cause
Government Action
Cause Details
Closed during the President's March 1933 banking holiday and later found insolvent by the Comptroller; conservator/receiver appointed.
Newspaper Excerpt
The Potomac Savings Bank, which suspended operations on March 5, 1933, reports assets to be accounted for...
Source
newspapers
2. September 29, 1933 Reopening
Newspaper Excerpt
The Potomac Savings Bank is now a branch of the Hamilton National. The conservators ... opened new quarters ... The Potomac Savings Bank is now a branch of the Hamilton National It was deemed best to have separate headquarters for the conservator George W. Offutt and his assistant ... Both Offutt ... are hopeful that in time the depositors in the Potomac Savings Bank will get practically 100 per cent the frozen deposits ... (Evening Star, 1933-09-29).
Source
newspapers
3. July 7, 1934 Other
Newspaper Excerpt
Five Institutions in Hamilton Merger Can't Make Full Payoff, Says Receiver ... Potomac Savings Bank ... assessments aggregating $3,340,000 have been levied against 1,343 stockholders ... Potomac Savings Bank, $140,000 by 68 stockholders (Washington Times, 1934-07-07).
Source
newspapers
4. June 3, 1935 Other
Newspaper Excerpt
Stockholders in the Potomac Savings Bank were held not liable to double assessment under the District laws by the United States Court of Appeals today ... The bank was incorporated in Virginia ... (Evening Star, 1935-06-03).
Source
newspapers
5. December 4, 1938 Other
Newspaper Excerpt
Added 8 Pct. Dividend Listed for Potomac Bank Depositors ... Potomac Savings Bank, which closed in March, 1933, will receive an additional dividend of 8 per cent beginning Tuesday ... bringing total disbursed up to 70 1/2 per cent of the deposits (Evening Star, 1938-12-04).
Source
newspapers

Newspaper Articles (20)
1. March 28, 1933 The Washington Herald Washington, DC
Article from The Washington Herald, March 28, 1933

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STOCK OPEN BANK Potomac Savings to Become National; 2,000 Depositors Share Exchange "Dividend" one-half of the More than $500,000 in stock subscriptions which will be necessary to conPotomac Savings Bank, vert the now closed. to the Potomac National Bank, has already been received, was yesterfor stock in day. Applications the reorganized are being entered rapidly. The bank was open Sunday for As soon as the $500,000 in stock subscriptions has been received. the bank will be able open. it was said. "DIVIDEND" IS PAID Meanwhile at the closed International Bank. the receiver paid out to 2,000 of the 3,500 A "dividend' of per cent is being paid to depositors, the first they have While the Potomac and other temporarily closed banks were finding way out of their difficulties, the conservator in charge the closed and looted Park Savings Bank ran into new tangle of complications. was learned that certain securities, including real estate notes had disappeared from their envelopes. The amount of money missing was not disclosed, but known that the total loss at this through of Robert Stuntz, vice president who committed suicide, will run to $1,600,000. MAZE GETS DEEPER The further examiners probed into the maze at the Park Savings, the more evidences looting and altered books they have found They yesterday that it will require several more weeks to clean up the situation. Col. Wade H. Cooper president the Bank, which the hands of that of the said names members of the tee of depositors in the bank will be made shortly by Wade H. Ellis.

2. May 6, 1933 The Washington Herald Washington, DC
Article from The Washington Herald, May 6, 1933

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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.

3. September 29, 1933 Evening Star Washington, DC
Article from Evening Star, September 29, 1933

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PHONE INCREASES August Total of $180,754 Reveals Large Gain Over Year Ago. BY EDWARD C STONE. Net operating income of the Chesa peake & Potomac Telephone Co., in August totaled $180,754 against $160. 896 in August, 1932. or an increase of $19,858. according to the monthly statement filed with the Public Utilities Commission today to Operating revenues amounted $735,396 with compared $732.188 August year ag The company made substantial reductions in operating expenses as the total stood at $478,559 against $514,965 in August last year leaving net operating revenues of $244. 629 in comparison with $220,431 last year Taxes required $63,875 of this August and $59.535 last $1.438 was Non-operating income against $2,951 in August 1932 Total gross income stood at $182.192 com pared with $163.847 Interest deduc tions took $25,003 against $24. 175 ing a balance before dividends of $157. 189 in compare rison with $139,672. gain in August of this year of $19,517 65.000 More Phone Calls. The increase in earnings was scored in spite of reduction during August 152 phones the District Columbia On August 31 there were 172.675 phones in operation here which is 5,175 fewer than were in use on the same month last year During August 081,000 phone calls were made approxi mately 65,000 more than in August 1932 The C. & P. Company also filed turns for the first eight months of 1933 showing operating revenues of 6.032 853 compared with $6.302 182 the like period in 1932 Operating expenses required $4.192.216 as compared with $4,544,448. the management by reducing costs more than offsetting the slump in operating income After deduction of taxes from op erating revenues the telephone com pany reported net operating income during the eight months of $1,344,587 against $1,298,040 Non-operating income was far under last year. $4,317 being compared with $39,488 year Total gross income stood at $1,348,904 compared with the lower figure of $1.332.528 Interest during the eight months called for $205,153 while this item year ago totaled $166.925 After these deductions the telephone com pany had a net balance before divi dends of $1,143,751. in comparison with $1,165,603 an advance in earnings during the eight months of $21,852. Open Banks Number 16.000 Open banks in the United States number 16.032 according the 115th edition of Rand McNa7 published Bankers Directory this week Total deposits as of June the last official statement amounted to $42,500,000,000. while capital surplus and undivided profit the stock holders equity, aggregated nearly $7. 000.000.000. Excluding conservator banks there are listed 4.983 national banks. 10.719 State banks and trust companies and 330 private banks In addition to the head offices there are 2.443 branches listed open Industrial banks Federal Reserve Banks. Federal Land Banks Federal Intermediate Banks and Joint Stock Land Banks bring the total listed banking institutions and branches to 18.797 for the United States Columbia Bank Votes Dividend Directors of the Columbia National Bank at their meeting yesterday after noon declared the regular quarterly dividend of $1.50 per share President Frank Strvker announced today The dividend is payable October to share holders of record on September 30 The conservators of the Potomac Savings Bank have moved from the bank at the corner of Wisconsin nue and M streets, in Georgetown. and opened new quarters at 1726 Pennsyl vania avenue. in the building in which the Departmetal Bank was formerly operated. The Potomac Savings Bank is now a branch of the Hamilton Na tional It was deemed best to have separate headquarters for the conservator George W. Offutt and his assistant. B Agee Bowles, and the Treasury Depart ment decided that a downtown office be desirable Both Offutt Mr would and Mr Bowles are hopeful that in time the depositors in the Potomac Sav ings Bank will get practically 100 per cent the frozen deposits, and that any levy on the stockholders will not be necessary The Commercial National Bank now in receivership, is doing a lively business passing out checks to deposit in paynemt of the first dividend since the bank closed last February Pay ment of this disbursement began last Tuesday The bank distr ributing $1. 030.601 or 20 per cent of the proven claims against the institution Trading on D C. Exchange Stock Trading on the Washington Exchange started today with $1.000 Capital Traction 5s selling at 55 prac tically the same as other recent transfers. The next transaction was $1.000 turnover in Washington Gas 1958 at 831/ Business was dull and there was but one other sale. 10 shares of The Capital Traction stock at 13 1/2 advance in this stock at least temporarily has slowed up The market closed with 12 bid and 14 asked 2 point drop in the asked price since yesterday. The Atlantic Coast Line Railroad Co today annound net income of $3 397,835 for the first eight months of the year compared with loss $266,456 for the sponding 1932 period. Although the L net opperating income last month was only $17,051. the figure contrasted exceed ingly favorably with August 1932, when a loss of $497.703 was shown The first luncheon meeting for the coming year of the District of Columbia Life Underwriters Association will take place next Wednesday noon at the Willard Hotel President Thomas P Morgan jr announced today The association is arranging for a special guest speaker The conservators of Washington banks which went into the Hamilton National out are deto checks sending merger positors in the individual banks who did not become connected with the new institution. These checks are drawn on a the Hamilton National and will put good deal of money into circulation About $30,000,000 000 of the $110.000. 000.000 of life insurance in this country is underwritten upon the lives of Amer ican farmers, including residents of towns of under 5.000 pop ulation. accord ing to Ralph Trubey of Fargo. N Dak who addressed the forty fourth annual convention of the National Association of Life Under writers He said that unless permanent security is given the rural worker and merchant all plans for national recovery will avail nothing.

4. November 1, 1933 The Free Lance-Star Fredericksburg, VA
Article from The Free Lance-Star, November 1, 1933

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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.

5. March 1, 1934 Evening Star Washington, DC
Article from Evening Star, March 1, 1934

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MT. VERNON BANK PLANS HASTENED Arrangements Being Made to Terminate Conservatorship Tomorrow. Arrangements were being made today to terminate the conservatorship of the Mount Vernon Savings Bank tomorrow morning, in order that final details may be worked out for opening the institution, at Massachusetts avenue and Ninth street, as headquarters of the new Mechanics-Franklin Savings Bank on Monday morning. This will free about $800,000 to about 30,000 depositors. Control to Directors. Conservator A. O. Wharton, who has been in charge of the institution since it was refused a license to reopen after the President's banking holiday last March, will turn the control of the institution back to its directors. This will enable the directors to sell the prime and liquid assets of the bank to the Washington Mechanics' Savings Bank, a going institution, about which the new merger centers. The depositors of the Mount Vernon will get 40 per cent of their deposits when the bank opens. Before checks can be drawn against this new account, however, depositors in the Mount Vernon must sign signature cards and get their pass books. Assets of the Mount Vernon remaining will be liquidated by Robert Highfield, a vice president of the Mount Vernon, for further payments to depositors later on. Frank W. Lee, president of the Mount Vernon Bank, will become a vice president of the new Washington-Mechanics Savings Bank. Franklin Pushes Plan. In the meantime the Franklin National Bank pushed forward in its campaign to get back from depositors a sufficient number of waivers and to sell sufficient new stock to make way for reopening of the Franklin Bank as part of the new merger. Receivership of the Potomac Savings Bank was being moved today from 1726 Pennsylvania avenue to the District National Bank Building at 1406 G street, where Norman R. Hamilton, receiver for six local banks, has his headquarters in the home of the old District National Bank.

6. March 1, 1934 The Washington Times Washington, DC
Article from The Washington Times, March 1, 1934

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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

7. March 30, 1934 Evening Star Washington, DC
Article from Evening Star, March 30, 1934

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STILL $23,000,000 IN BANKS CLOSED of 15 for Liability Deposit 19 Institutions Shown by Figures. of hands for totals Deposit liability 15 out in of the the 19 closed more receivers banks of this city it was now learned include today. the than $23,000,0 figure ,000, does not banks here and deposit This liability hands of of three conservator: Bank, still in Mount the Vernon by the The are which the was absorbea Savings of Bank conservators Mechanics the hands ational Bank also ton three still the in Franklin by the Mechanics. and Savings ting the under to be Woodridge-la absorbed Langdon which is operating merger. Commercial the Hamilton Bank. Savings Bank Bank, now The attempting and the Industriorganization. a reorg bill. now on pendanking. depos- in provide closed The itors cents on to House would in all the for dollar national face stiff banks bill, op position. however, 100 is The known provide latest amendment legislation for including from to the bill benefits would of had the borrowed CorporaState in the banks which Finance This would tion apply to most here. the Reconstructions before they of the clased banks Seven Banks group In of Merger. closed was merged banks of The seven largest new in number, Hamilton received National 50 per their Bank, Bank. into here, the The depositors deposits either or from remains through the receiver which assets cent the Hamilton but the there receivers still are now of deposit of liquidating. The detailed in figures the of hands the seven liability placed from these District six American National receivers are as follows Federal CO., $4,285, 135; banks Bank, $2.075.645 Bank Savings Trust Savings Bank, $509.1 Bank, Bank, $551,000; Potomactic Savings 932; National Northear Seventh Street Savings Bank, $1,033,441; Washington in the liability which $179,200. Remaining deposit Savings Bank, of Riggs Chevy reopenea Chase as stands a branch at $273,783 782. has Bank, Deposits. in National Show banks Figures other the amount Figures from here, showing the hands date. of of receivers, follows: receivership deposits placed the total in paid to de$838.866 dividends if Bank any are of Brightwase which depositors: Con- reposits, been of paid Company, to when $5,766 it was 28, tinental have Trust liability February Commercial maining with the which thrown 1933. at into National the merged: same Bank, commercial totadi deposit Nahave about to been liability, tional had Bank, of which $10.147.349.143 $4,000,000 in addi- full; debeen paid be paid in deposits, tion to which had Bank, $802,373 has been Ex$538,70 of in paid Bank, have posits, in of dividends:- $451. 967 been paid Savings dividends: change which $99,47 North deposits, Capitol of which Bank, Bank. $1,02 has been States paid Savings resident, between $234,203 United bitter controver president is Col. the deposits centerwade The of a Treasury H. Cooper. epartment, Februwhen it of this have ary 10 been paid. shown and to went have into year. receive NO dividends 1. May Seen is Bank The Opening absorbed Franklin Savings by National Bank, the the and institution is The to being Mechanic name Washington of wington. before take the City new Bank of will open the dollar. into Franklin "The paying probabis 65 cents on beingenent turned of and May the remaining remauidating assets trust for Savings a Langdirectors De- are depositorwoodridge Wercial Bank Treasure Incommercial Complans of the it into are in the is resisting partment remaservator. remaining to throw assets The however, place as ship and of a doing business Hamiltency Bank O'Conhands and the the Currenc the ques- all a branch of Controller Controll of to be stressment studying assets on were nor is known laying an primenization. tion of banks into whose Bank, battle, over which the of Spokan park the Savings bitter court com- reThe there Feasury a Departies deposit to collect than with the allied with the director of deposit ceiver against amount shows to the remitteefull $2,500,000 when shortage, turned No over real the dividends 5 per liability, $3,379.5 though to some paid ceiver, of paid, bank has paid been not since it it people closed reviously have cent which been before the it closed others who had

8. July 7, 1934 The Washington Times Washington, DC
Article from The Washington Times, July 7, 1934

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DEPOSITORS MUST TAKE LOSSES Five Institutions in Hamilton Merger Can't Make Full Payoff, Says Receiver Assessments aggregating $3,340,000 have been levied against 1,343 stockholders in five closed Washington banks, Comptroller of the Currency J. F. T. O'Connor announced today. The assessments, which are 100 per cent, must be paid between now and November 13, a 25 cent down payment being 13, Mr. made per August O'Connor said. Other installments on the assessments can be made September 13 and October 13. The five banks affected by the the amount comptroller's of ruling assessment and Federal- the for are: The National be by 642 American each 000, to bank paid Bank, stockhold- $2,000,District 325 ers; $1,000,000, the by National stockholders; Bank, the Potomac Savings Bank, $140,68 Northeast 000, by Savings stockholders; Bank, $100,000, the stockholders; the Seventh Bank, by Street 185 Savings $100,000, by 123 stockholders. Depositors to Lose exception of the Federal-American With the National Bank, are in receiverthe ship these under institutions jurisdiction is also of NorR. Hamilton, who rethe defunct Bank. Mr. man ceiver ton Savings for Hamilton Washing- of today that all hope to full announced payment thousands banks which of depositors in these five merged with the Hamilton National Bank have been definitely blasted. Although they already have recent of when the five ceived posits 50 per defunct their by the de- inwere taken over Bank, the a 100 per stitutions had Hamilton anticipated depositors cent payment on the remaining part of their savings. Two Others in Doubt Besides these five banks, two taken over Hamilton others the present were to National create are the Federal National American Bank. These Bank the Wood- and Company and Bank. It ridge-Langdon Trust Savings Commercial could not and be just banks could pay on ascertained these two today how off much the amounts due depositors. venMr. Hamilton would much not to just how the for reoff. five ture ceiver banks could say pay which Shrinkage he is market value assets the banks was Mr. of held the by Hamilton the of for reason not off 100 per cent given paying by to savings. depositors on their remaining however, real He extraordinary added, estate that boom "an in Washington" might result cent in a 100 per pay-off, event but pointed out that such an is "extremely remote." May Pay By December There were indications payment today to that at least some in these made before would depositors be five December. officially banks this was not it seemed announced, Although to be a conclusion from a stateMr. for loans foregone ment applications made by Hamilton from that the Reconstruction Finance Corpora(Continued on Page 2, Col. 1)

9. July 8, 1934 Evening Star Washington, DC
Article from Evening Star, July 8, 1934

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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.)

10. July 9, 1934 The Washington Times Washington, DC
Article from The Washington Times, July 9, 1934

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D. C. BANKS TIE UP MILLIONS (Continued from Page 1.) course, meant less money for the banks. The largest amount of money still due Washington depositors is held by the defunct Commercial National Bank, which closed its doors with deposits aggregating $11,058,615. Since its failure it has paid off half this amount. Local financial speculation centered today on just how much money would pour into the coffers of five of the banks in receivership here as a result of a 100 per cent levy on 1,342 stockholders for $3,340,000. Assessments were levied against stockholders in the FederalAmerican National Bank, the District National Bank, the Potomac Savings Bank, the Northeast Savings Bank, and the Seventh Street Savings Bank. May Collect One-Third It developed over the week-end that scores of stockholders in these banks are not in a position to meet the demands of the Comptroller of the Currency. Bankers, baring their estimates on past experience, believe that only one-third of this debt will be paid. This fact, plus an appreciable shrinkage in assets held by the banks, makes eventual loss to thousands of depositors a certainty. There was considerable discussion today regarding the possibility of assessments being levied against stockholders in the Washington Savings Bank and the Woodridge-Langdon Savings and Commercial Bank, two which joined with the five that have been assessed in forming the present Hamilton National Bank. Whether the Comptroller of the Currency will levy assessments against stockholders in these banks could not be ascertained.

11. August 13, 1934 Evening Star Washington, DC
Article from Evening Star, August 13, 1934

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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.

12. August 15, 1934 Evening star Washington, DC
Article from Evening star, August 15, 1934

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BANK ASSESSMENT TEST SUIT PLANNED Action to Be Taken Against One Stockholder of Potomac Savings. A test suit to determine the liability of stockholders of the Sav. ings Bank for 100 per cent assessment on the $140,000 capital stock of this institution soon be instituted by counsel the bank's receiver, it learned This bank was chartered under the double liability provided by State The suit, it was learned, will filed against of number stockholders by Charles Imlay, The represented Angus W. McLean and Charles while the controller the currency to be represented by George This will be resorted to get court determination liability case, filing against number of The Potomac Savings Bank was one the banks which reopen after the bank holiday and later prime the Hamilton the rest of the assets being thrown into receivership.

13. September 5, 1934 Times Herald Washington, DC
Article from Times Herald, September 5, 1934

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BANK RECEIVER SUES OFFUTT TRUSTEES Potomac Savings Case to Test Legality of Assessment Against Stockholders Testing the legality of a 100 per cent assessment ordered against stockholders of the Potomac Sav ings Bank by the Comptroller of Currency. Norman R. Hamilton, receiver of the bank, filed suit today in District Supreme Court against Henry W and George W Offutt. trustees for the estate George W. Offutt. 1400 block St., W. The suit seeks to recover from the defendants, who have in their trusteeship 2,044 shares of stock in the bank. Other Suits to Wait The Treasury Department has agreed to test the Comptroller's power in this case until adjudicated by the District ourt of Appeals before filing other suits on similar grounds. Through Attorneys Angus W McLean and Charles E. Wainwright. the receiver alleged that the bank was incorporated Virginia and has outstanding 7,000 shares of capital stock. It is pointed out that neither the articles of incorporation and the institution nor the laws of Virginia provide for lia bility stockholders in the form of an assessment. Valid, Says Suit The receiver contends. however, that since the bank has been doing its business in the District. conduct comes within the jurisdiction and authority of hte Comptroller. The suit charges that under local statutes the 100 per cent assessment ordered by the Comptroller last July is valid. The bank was closed during the banking holiday in March, 1933, and found insolvent by the Comptroller. who appointed the receiver last January.

14. September 5, 1934 Evening Star Washington, DC
Article from Evening Star, September 5, 1934

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POTOMAC BANK SUIT TESTS ASSESSMENT Receiver Seeks to Recover $40,880 From Estate of Stockholder. Seeking to test the legality of a recent assessment against stockholders of the Potomac Savings Bank, Norman R. Hamilton, the bank's receiver, filed suit in District Supreme Court today to recover $40,880 from the estate of the late George W. Offutt. It was pointed out that Offutt's estate owns 2,044 shares of stock in the bank. The bank was incorporated in Virginia and neither the articles of the corporation nor the Virginia laws provide for a liability on stockholders in the nature of an assessment. The receiver contends, however, that the bank conducted its business in the District and is, therefore, covered by local statutes authorizing the controller of the currency to levy a stock assessment. The suit, filed through Attorneys Angus W. McLean and Charles E. Wainwright, points out that the bank was closed during the banking holiday and later was found to be insolvent.

15. April 10, 1935 The Washington Times Washington, DC
Article from The Washington Times, April 10, 1935

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2 Banks Pay Depositors $142,579 Checks for $142,579.39 were sent to depositors of the Northeast Savings Bank and the Washington Savings Bank today by Receiver Norman R. Hamilton. The payment represented a 10 per cent dividend for depositors of both institutions. In the case of the North East Savings, the amount paid was $107,010.18 bringing total payments to date to 85 per cent of the $1,070,101.89 on deposit at the time the bank was closed and leaving $160,515.36 still owing to depositors. Today's 10 per cent dividend to depositors of the Washington Savings Bank amounts to $35,569.21. This brings the total payments to date to $284,569.21 or 80 per cent of the $355,692.17 on deposit when the bank was closed. There remains to be paid $71,138.49. Provided claims in receivership can be proved, it is indicated that stockholders of the Potomac Savings Bank will also receive a dividend next month. According to present plans this would amount to about $261,395.84 or 12½ per cent of the total of $2,091,165.91 on deposit when the Potomac Bank was closed. Commercial Plans Hope for an additional dividend also seems held out to depositors of the Commercial National Bank, according to Receiver Baldwin's report made public today. Only $225,762.58 have been collected in the assessment of stockholders, and the receiver estimates the uncollected stock assessments of $771,637.42 will only amount to $27,785.50 in ultimate liquidation value. This and other uncollected assets are estimated to be worth $2,471,053.50 in ultimate liquidation value. Deducting the balance of $848,000 owed the RFC, there remains roughly $1,500,000 or between 20 and 25 per cent of the $5,578,016.56 deposits in the bank at time of closing.

16. June 3, 1935 Evening Star Washington, DC
Article from Evening Star, June 3, 1935

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# COURT DECLARES # POTOMAC SAVINGS # LIABILITY LIMITED Chartered in Virginia, So Double Assessment on Stock Fails. # DISSENTING OPINION # PRESENTED BY HITZ Decision Opens Way to 48 Different Standards, He Declares. Stockholders in the Potomac Savings Bank were held not liable to double assessment under the District laws by the United States Court of Appeals today in an opinion described by Associate Justice Hitz, who dissented, as demonstrating "that a foreign charter for a local bank is a source of danger in the community." The majority opinion, written by Associate Justice Groner, affirmed a decision by the District Supreme Court in a suit brought by Norman R. Hamilton, the bank's receiver, to collect a double assessment on 2,044 shares of stock in the estate of the late George W. Offutt. The bank was incorporated in Virginia, whose laws do not provide for a double assessment, and Attorneys Charles V. Imlay and Ross H. Snyder, representing the trustees of the estate, contended this fact relieved the stockholders of such an assessment, even though the bank did business exclusively in the District. # Controller Can Take Charge. It was pointed out the District Code authorizes the controller of the currency, in event of insolvency, to take possession of any bank doing business in Washington. From this it was argued that the laws of the United States, providing for a double assessment in certain cases, should be extended to cover a bank incorporated in Virginia and doing business here. In refusing to accept this view, the majority opinion pointed out it is fundamental that the liability of a stockholder is determined by the charter of incorporation and the laws of the State in which it was incorporated. The court, therefore, held that since the Virginia law did not provide for a double assessment, the receiver could not enforce his claim against the Offutt estate. In disagreeing, Justice Hitz said he thought the opinion proceeded upon a meager and narrow construction of statutory provisions to a conclusion contrary to their purpose and defeating their object. # D. C. Law Held Accepted. "When this group of Washington business men brought their Virginia charter across the Potomac River and set up in the City of Washington the bank's only place of business, it necessarily accepted and adopted all provisions of local law governing local banks, including the acts of Congress intended in general terms to place banks created outside of the national banking system on the same footing as national banks doing business in the District of Columbia," he continued. "I read these statutes as intending not only to give the national banking authorities certain powers of visitation and inspection, and to define how and why and when the controller may take control, but as imposing the same liabilities and regulations upon State banks as upon national banks doing business here, both in respect of report and condition, and in respect of protecting depositors and other creditors as against the owners of the bank by the same liability upon stockholders for the debts of the bank. # 48 Kinds of Liability Seen. "Under the judgment of the court in this case, 48 State banks engaged here in the same business at the same time could have 48 separate measures of liability of their stockholders to their creditors, all differing from each other and all differing from the liability of national banks in the same respect, yet all operating within the legislation of Congress intended to make such liability uniform and equal. "While this construction of the statutes is legally possible, it is neither reasonable nor necessary, and I cannot accept the judgment as a sound conclusion, though recognizing its value as a demonstration that a foreign charter for a local bank is a source of danger in the community."

17. July 3, 1935 Evening Star Washington, DC
Article from Evening Star, July 3, 1935

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BRICE CLAGETT NEW HAMILTON COUNSEL Succeeds Late Angus W. McLean in Receivership of Five Banks Here. Brice Clagett, attorney and former newspaper man, has been appointed counsel for Norman R. Hamilton, receiver of five insolvent banks of this city, succeeding the late Angus W. McLean. it was learned today. Mr. Clagett will participate in the extensive litigation already revolving around the banks in charge of Mr. Hamilton, particularly the District National Bank. He will have associated with him Charles E. Wainwright, attorney, formerly with the Treasury Department, who was associated with Mr. McLean. The banks concerned are the District National Bank, Potomac Savings Bank. Northeast Savings Bank, Seventh Street Savings Bank and Washington Savings Bank

18. July 16, 1935 Evening Star Washington, DC
Article from Evening Star, July 16, 1935

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CLEARINGS HOLD UPTURN Advance of 26.9 Over Year Ago Follows Climb During June. BY EDWARD C. STONE. Following the marked gain in bank clearings in Washington in June comes the report for the first week in July which indicates a continuation of the notable upswing. an advance of 26.9 per cent over the corresponding week year ago. Clearings in Washington in the first week of the present month totaled $20,823,476, against $16,407,784 in the corresponding week of last year, $12.573,685 in 1933 and $17,727,781 in the comparable week in 1932 Other cities in the fifth district showed interesting and important weekly percentage gains. Huntington. W Va. went against the trend. however, noting a decrease of 16 per cent while Norfolk, Va. was also behind last year by 14 per cent Charleston, S. C. enjoyed a boom of 86.4 per cent; Richmond, Va., reported an increase in clearings of 4.8 per cent and Baltimore scored gain of 5.1 per cent. The aggregate increase for Washington and the other five cities was 8.5 per cent. The Washington gain of 26.9 per cent was fractionally above the advance of 26.8 per cent for the whole country, as reported by the Financial Chronicle. To these figures is added a preliminary estimate for the second week in July which indicates the same trend, upward in spite of the midEummer season. Hamilton's Book Value Gains. President E C. Graham of the Hamilton National Bank sent a letter to stockholder today reporting book value of the bank's stock on June 29, as $29.40 per share as against $27.31 a share on December 31, 1934, an addition to undivided profits and book value equivalent to $2.09 a share in the half-year period. Mr. Graham reports net earnings from purely bankings operations during the six months at $84,887.74 or $1.69 per share. These operating results were augumented by net profits from transactions in Government bonds and other securities and miscellaneous non -operating credits, totaling $59,268.25 against which the bank charged off losses and established reserves for contingencies and other purposes amounting to $16,995.40, leaving a net profit from all sources for the half year of $127,160.59. The management is more than pleased with the results of the past six months' operations, the bank official says. However, lack of demand for sound loans and continuing tendency toward lower interest rates makes it inadvisable to attempt forecasts on the basis of past operations, he adds. During the first six months of 1935 branch operations as a whole resulted in net profits of $12,613.74, only one branch showing a moderate monthly loss There are certain developments in prospect at this time which will either place this branch on definitely profitable basis or materially improve the situation, Mr. Graham states. In concluding his letter, the president says business in the trust department has exceeded expectations. Edson Lauded By Financiers. The death of John Joy Edson takes A leading financial figure from the banking district a banker who had been an active leader for more than half century. Few financiers make such long record or such a brilliant one. Bankers today lauded his long bank ing and civic service to the community, saying that he leaves a vacancy which will be hard to fill. A review of his life shows an amazing number of accomplishments which could have resulted only through exceptional ability and untiring energy His service to the Washington Loan & Trust Co. for great many years has been most valued. After serving as president of the institution his advancing years caused him to retire to the chairmanship of the board in favor of the late John B. Larner, afterward being succeeded by the present head Harry G. Meem Up to the very last he kept in closest touch with the bank's affairs. In late years his services to the Equitable Building Association were of equal value His office was in the Equitable just across from the bank Always an optimist, he only recently expressed the opinion that the country will come out of the depression and enter period more prosperous a than any in the past. He felt that start toward the better times had already been made. Hill on Advisory Committee. President Roosevelt recently appointed Julien H Hill; president of the State-Planters' Bank & Trust Co. of Richmond, a member of his Advisory Committee on Works Allotment Mr. Hill. who will be the representative of the A. B.A., will assume his position immediately. All of the members of this advisory board serve in an honorary capacity and the duty of the board will be to pass upon all applications for funds and then recommend to the President such action as they may consider most advisable. Mr. Hill has always shouldered his full share of the work necessary to promote the development and the welfare of Virginia, Richmond and the South. He has been for years the treasurer of the Virginia State Chamber of Commerce and in 1931 served as its president. Potomac Bank to Pay $253,767. Receiver Norman R. Hamilton announced today that the Potomac Savings Bank will begin payment tomorrow of another 12 1/2 per cent to depositors who present proven claims at 1406 G street northwest. This action will bring total payments up to 621/2 per cent as the bank paid off 50 per cent when it reopened as branch of the Hamilton National The coming payment involves the distribution of $253,767. which will be shared and weloomed by hundreds of depositors. The report of the receiver, made a few days ago and covering the second quarter of 1935, revealed very sub-

19. January 13, 1936 The Washington Times Washington, DC
Article from The Washington Times, January 13, 1936

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BANK COLLECTS $4,400,102.20 Norman R. Hamilton, receiver of the District National Bank, reports total cash collected from assets and stock assessment on December 31 at $4,400,102.20 and total remaining uncollected assets at $4,795,558.78. The bank has paid dividends of 50 per cent. The Potomac Savings Bank, which suspended operations on March 5, 1933, reports assets to be accounted for at $3,543,903.06 and total cash collected from assets and stock assessment at $1,616,721.08, on December 1. Dividends of 62.5 per cent has been paid to unsecured creditors. The Seventh Street Savings Bank had collected $1,026,439.44 at the end of the year, while total remaining uncollected assets amounted to $679,867.76. Dividends of 80 per cent have been paid. On December 31, the Northeast Savings Bank had collected $1,344,856.07 from assets and stock assessment leaving $368,881.71 in remaining uncollected assets. The bank has paid 85 per cent to unsecured creditors. Total cash collected from assets and stock assessment by the Washington Savings Bank amounted to $417,195.61 at the end of the year leaving uncollected assets of $223,706.73. Dividends of 80 per cent have been paid creditors. Claude H. Woodward, receiver of the Bank of Brightwood, reports $496,652.02 collected from assets and stock assessments by December 31. Total remaining uncollected assets amounted to $434,829.98. Dividends paid to unsecured creditors equal 55 per cent or $436,902.35.

20. December 4, 1938 Evening Star Washington, DC
Article from Evening Star, December 4, 1938

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Added 8 Pct. Dividend Listed for Potomac Bank Depositors of the Potomac Savings Bank, which closed in March, 1933, will receive an additional dividend of 8 per cent beginning Tuesday, amounting to a total of about $162,COO, it was announcd yesterday by Justus S. Wardell, receiver. Checks for the dividend, which brings the total amount disbursed up to 70 1/2 per cent of the deposits