1791. Potomac Savings Bank (Washington, DC)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
March 1, 1933*
Location
Washington, District of Columbia (38.895, -77.036)

Metadata

Model
gpt-5-mini
Short Digest
d96c043c042e6355

Response Measures

None

Description

The Potomac Savings Bank closed in March 1933 and was placed in receivership. The articles (1938–1941) describe receivership activity: asset sales, periodic dividends, and final dividend distribution in 1941 with the receivership to be closed. No bank run is mentioned in the provided items. The exact reason for the 1933 closing is not stated in these excerpts; closure date is given as March 1933.

Events (7)
1. March 1, 1933* Receivership
Newspaper Excerpt
Justus S. Wardell, receiver for the Potomac Savings Bank, ... (articles repeatedly refer to Wardell as receiver).
Source
newspapers
2. March 1, 1933* Suspension
Cause
Macro News
Cause Details
Closed in March 1933 during the widespread bank failures/closures of that period (article states bank closed its doors in March, 1933).
Newspaper Excerpt
the bank closed its doors at Wisconsin avenue and M street N.W. in March, 1933.
Source
newspapers
3. March 26, 1938 Other
Newspaper Excerpt
ORDER NISI ... Justus S. Wardell, as Receiver of the Potomac Savings Bank ... it is by the Court this 26th day of March, 1938 ADJUDGED. ORDERED AND DECREED.
Source
newspapers
4. December 3, 1938 Other
Newspaper Excerpt
Justus S. Wardell, receiver for the Potomac Savings Bank, today announced an additional dividend of 8 per cent will be paid beginning Tuesday morning to 8,300 depositors.
Source
newspapers
5. April 15, 1940 Other
Newspaper Excerpt
Potomac Bank Assets To Be Sold April 15 ... announced a preliminary sale of assets of the closed bank to the highest bidder April 15 at the receiver's office.
Source
newspapers
6. November 11, 1941 Other
Newspaper Excerpt
Potomac Savings Bank To Pay Depositors Last Dividend ... Payment of $126,660 ... will be disbursed by Receiver Justus S. Wardell to 8,318 depositors, beginning Thursday.
Source
newspapers
7. November 13, 1941 Other
Newspaper Excerpt
Receiver Justus S. Wardell started payment today of a final dividend of $126,660 to 8,318 former depositors in the closed Potomac Savings Bank. ... the receivership is to be closed out before the end of the year.
Source
newspapers

Newspaper Articles (10)
1. March 30, 1938 Evening Star Washington, DC
Article from Evening Star, March 30, 1938

Click image to open full size in new tab

Article Text

IN THE DISTRICT COURT OF THE United States for the District of Columbia.-IN THE MATTER OF JUSTUS S. WARDELL, RECEIVER. THE POTOMAC SAVINGS BANK. WASHINGTON D. C.MISCELLANEOUS NO. 44.-ORDER NISI. Justus S. Wardell. as Receiver of the Potomac Savings Bank. having reported to the Court that he has received an offer from James E. and Sarah Elizabeth Ash to purchase real estate in the District of Columbia. described as Lots 59. 807 and 808 in Square 1232. improved by a brick dwelling containing eleven rooms. one bath. hot-water heat. electric lights and city sewerage. located at 3139 N Street Northwest. at and for the sum of Six Thousand Five Hundred Dollars ($6,500) cash. subject to adjustment of taxes, insurance, rentals. etc to date of sale and further subject to a real estate agent's commission of Two Hundred and NinetyFive Dollars ($295) and having further reported to said Court that he has been authorized by the Deputy Comptroller of the Currency of the United States to petition this Court for authority tQ make said sale upon the terms herein set forth. it is by the Court this 26th day of March. 1938, ADJUDGED. ORDERED AND DECREED. that said offer be accepted and said sale be ratified and confirmed unless cause be shown to the contrary on or before the 18th day of April. 1938, provided. however. a copy of this order shall be published in The Washington Evening Star at least three times prior to said April 18. 1938 JOSEPH W. COX. Justice. (Seal.) A true copy. Test: CHARLES E. STEWART. Clerk By J. WESLEY GARDNER. Jr., Asst. Clerk. mh30.ap6.13.

2. April 13, 1938 Evening Star Washington, DC
Article from Evening Star, April 13, 1938

Click image to open full size in new tab

Article Text

IN THE DISTRICT COURT OF THE United States for the District of Columbia - THE MATTER OF JUSTUS S. WARDELL RECEIVER THE POTOMAC SAVINGS BANK WASHINGTON D. C.MISCELLANEOUS NO. ORDER NISI. Justus S. Wardell. as Receiver of the Potomac Savings Bank. having reported to the Court that he has received an offer from James E. and Sarah Elizabeth Ash to purchase real estate in the District of Columbia. described as Lots 59. 807 and 808 in Square 1 improved by a brick dwelling containing eleven rooms. one bath. hot-water heat electric lights and city sewerage. located at 3139 N Street Northwest. at and for the sum of Six Thousand Five Hundred Dollars ($6,500) cash. subject to adjustment of taxes. insurance, rentals. etc. to date of sale and further subject to a real estate agent's commission of Two Hundred and NinetyFive Dollars ($295) and having further reported to said Court that he has been authorized by the Deputy Comptroller of the Currency of the United States to petition this Court for authority to make said sale upon the terms herein set forth. it is by the Court this 26th day of March. 1938 ADJUDGED. ORDERED AND DECREED. that said offer be accepted and said sale be ratified and confirmed unless cause be shown to the contrary on or before the 18th day of April, 1938 provided however. a copy of this order shall be published in The Washington Evening Star at least three times prior to said April 18. 1938 JOSEPH W. COX Justice. (Seal.) A true copy. Test: CHARLES E. STEWART. Clerk By J. WESLEY GARDNER. Jr., Asst. Clerk mh30.ap6.13.

3. December 3, 1938 Evening Star Washington, DC
Article from Evening Star, December 3, 1938

Click image to open full size in new tab

Article Text

New 8 Pct. Dividend For Potomac Savings Depositors Announced 8,300 Will Get $162,000 Payment Beginning On Tuesday Justus S. Wardell, receiver for the Potomac Savings Bank, today announced an additional dividend of 8 per cent will be paid beginning Tuesday morning to 8,300 depositors. The payment, which comes just in time for Christmas shopping, will amount to about $162,000. It will bring the total payments to depositors of this bank up to 70 1/2 per cent of their total accounts in the bank when it closed in March, 1933. Post card notices are being mailed to depositors, who are asked by Receiver Wardell to wait until the day mentioned in the cards to call at the office. Checks are available at the receiver's office, 1406 G street N.W., but will be paid out only to depositors bringing in their post card notices. These cards are being mailed out in groups daily, so as to bring in the depositors by groups and prevent congestion in the office. Mr. Wardell also announced that many uncalled-for checks for a 5 per cent dividend to depositors in the Northeast Savings Bank are still available at the Northeast Branch of the Hamilton National Bank, at Eighth and H streets N.E. This dividend brings up to 100 per cent the total payments to depositors. The dividend amounts to about $52.000. Checks will remain at the Northeast location, however, only today, but beginning Monday those remaining will be available at the receiver's office, 1406 G street N.W. This dividend was declared some time ago and most of the checks have been distributed.

4. December 5, 1938 Evening Star Washington, DC
Article from Evening Star, December 5, 1938

Click image to open full size in new tab

Article Text

Franklin Bank Depositors to Get $200,000 Payment of New Dividend Starts Tomorrow Depositors in the closed Franklin National Bank will receive an additional dividend amounting to about $200,000 beginning tomorrow, it was announced today by Samuel M. Thrift, executive secretary of the Franklin Liquidating Trust The dividend will be paid in check form, at the office of the trust, Room 22, at 945 Pennsylvania avenue, in the building formerly occupied by the bank. Checks have been made out in the amount of 20 per cent of the face value of certificates of participation held by depositors. It will be necessary for depositors to present their certificates of participation, in order to get their new checks, Mr. Thrift emphasized. These certificates were issued in April, 1934, when Franklin depositors were paid in cash 65 per cent of their claims through the City Bank of Washington, which now operates a branch in the old Franklin Building at Pennsylvania avenue and Tenth street. For the remainder of their claims, depositors received at that time, certificates of participation representing 35 per cent of their deposits. Two dividends have been paid since, each one representing 25 per cent of the face value of the certificates. The dividend of 20 per cent now payable amounts to 7 per cent of the original deposit. Thus, when depositors get their checks for the latest dividend they will have received a total of 89 1/2 per cent of their deposits. The office will be open daily from 9 a.m. to 5 p.m., Mr. Thrift explained, with the exception of Saturday when it will close at noon. Trustees of the liquidating trust are William F. Kelly, Lindsey P. Rawley and Henry J. Sterzer. As announced Saturday, another closed bank will begin paying an additional dividend tomorrow, when the Potomac Savings Bank begins distribution of an 8 per cent dividend. amounting to $162,000, to 8,300 depositors. Checks will be paid to depositors bringing notification cards to the office of Receiver Justus S. Wardell, at 1406 G street N.W.

5. December 6, 1938 The Washington Times Washington, DC
Article from The Washington Times, December 6, 1938

Click image to open full size in new tab

Article Text

MONEY EASIER Speaking before the Washington Building Congress at the Lafayette Hotel last night, Underwood reminded his hearers that there is now a definite opening in the money market. Member banks of the Fifth Reserve District increased their loans and discounts between the middle of October and the middle of November. and deposits in these institutions showed an increase during the same period. The United States Building and Loan League reported an increase in the volume of assets on the part of Washington building and loan associations. The Perpetual Building Association here leads the country in resources with $48,370,540. BANK PAYOFFS HELP Nearly $400,000 to be paid to depositors of closed Washington banks this week will give a further impetus to trade here. To day, the receiver O' the Potomac Savings Bank began payment of $162,000 to 8,300 depositors. Franklin National Bank began paying a dividend of $200,000, and there was a recent payoff of the Northeast Savings Bank.

6. February 1, 1939 Evening Star Washington, DC
Article from Evening Star, February 1, 1939

Click image to open full size in new tab

Article Text

District National Bank Building Is Sold For $325,000 Funds Will Be Used Eventually for More Dividends Sale of the District National Bank Building at 1406 G street N.W. to Elsyldor Properties, Inc., at a price of $325,000. was announced today by Justus S. Wardell, receiver for the bank. To make way for immediate transfer of the property, Receiver Wardell began to move today the records of five receiverships from the sold building to modest rented quarters at 1614 K street N.W. The receiverships for these five closed banks in charge of Mr. Wardell will be operated. beginning tomorrow morning, at the new K street address. Terms of the sale, which was negotiated by H. C. Smithy and Mark Winkler, included the paycash ment of $75,000 and cent. $250,000 The in trust notes at 41/2 per agreement provides that the purchaser shall pay off $15,000 of the for the notes each year first next trust five years. This would leave a on the building of $175,000 at the end of the five years, in 1944. Improvement Stipulated. A further stipulation in the sale is that the buyer shall spend within $30,000 on improvethe building. less than $30,000 be ment the next to year Should expended anyfor the thing this purpose, difference between what is actually spent for improvement and $30,000 shall be used to curtail further the outstanding notes. Receiver Wardell explained that the funds from sale of the building will be used eventually for more to the 8,600 in dividends depositors the closed District National Bank. The receivership, however, at the time does not have sufficient the of funds present to justify disbursement another dividend now. No prediction could be made as to when the next dividend could be paid to the depositors. These depositors already have received dividends amounting to 85 per cent of their accounts in the bank when it closed in March, 1933. Five Banks Listed. The five closed banks, whose records Mr. Wardell will move from G to K streets immediately, are: District National Bank, Potomac Savings Bank, Seventh Street Savings Bank, Northeast Savings Bank and Washington Savings Bank. One of the first acts of Mr. Wardell after moving to his new location will be supervision of arrangements to pay depositors of the Washington Bank another dividend, interest on acconstituting Savings their that bank. These 3,000 depositors counts in already have received 100 the dollar from the receivand the new ership cents on additional will amount dividend to be paid shortly to cent 10.24 per interest. This will bring the payments to these depositors up to a total of 110.24 per cent their deposits when the bank 1933. A closed of in date for distribution of this dividend had not been fixed. The disbursement is expected to amount to about $37,000.

7. February 19, 1939 Evening Star Washington, DC
Article from Evening Star, February 19, 1939

Click image to open full size in new tab

Article Text

Closed Bank Depositors Slow to Claim Checks Depositors of the closed Washington Savings Bank are slow to claim the new dividend checks now available, it was announced yesterday by Receiver Justic S. Wardell. The checks, which are for 10.24 per cent of the deposits in the bank when it closed in 1933 are not available at the former office of the receiver, it was emphasized, but at his new office, 1614 K street N.W. Post cards notifying approximately 2,000 certificate holders have all been mailed out, and disbursement of funds. amounting to approximately $35,879 has been in progress since last Monday. Payment of the present dividend is for interest on the deposits in the bank when it closed, and brings up to a total of 110.24 per cent the amount made available. Receiverships of these other banks in charge of Receiver Wardell also are at the new K street location: Northeast Savings Bank, District National Bank. Potomac Savings Bank and the Seventh Street Savings Bank.

8. March 24, 1940 Evening Star Washington, DC
Article from Evening Star, March 24, 1940

Click image to open full size in new tab

Article Text

Potomac Bank Assets To Be Sold April 15 Justus S. Wardell, receiver of the Potomac Savings Bank, yesterday announced a preliminary sale of assets of the closed bank to the highest bidder April 15 at the receiver's office, 1614 K street N.W. The sale is part of the procedure to complete liquidation of the remaining assets, and to provide further funds for another dividend for depositors. There was no indication, however, as to when such a dividend may be expected. Depositors so far have received dividends totaling 70 1/2 per cent.

9. November 11, 1941 Evening Star Washington, DC
Article from Evening Star, November 11, 1941

Click image to open full size in new tab

Article Text

Potomac Savings Bank To Pay Depositors Last Dividend Payment of $126,660 To Bring Total to 81.77 Per Cent Final dividend in the closed Potomac Savings Bank, amounting to about $126,660. will be disbursed by Receiver Justus S. Wardell to 8,318 depositors, beginning Thursday. Mr. Wardell explained that depositors are expected to come only when thev have received the postal cards notifying them of the exact date their checks will be available. Postal cards now are being mailed out to depositors in groups, several each day. Checks will be available at the receiver's office. 1429 I street N.W. To obtain these checks it will be necessary for each depositor to bring his receiver's certificate. and to relinquish it upon receipt of the final dividend. This last dividend amounts to 6.27 per cent of the amount the depositor had in the bank when it closed its doors at Wisconsin avenue and M street N.W. in March, 1933. Depositors previously had received a total of 75.5 per cent of their money, so that with this last dividend the total received by them will amount to 81.77 per cent. The total amount finally received by depositors in dividends is to be $1,676,623.31. Depositors were asked by Mr. Wardell to come for their checks as soon as possible after notification. The receivership is to be closed out before the end of the year.

10. November 13, 1941 Evening Star Washington, DC
Article from Evening Star, November 13, 1941

Click image to open full size in new tab

Article Text

Total Based upon reports from individual Christmas Club members and applying these reports to the entire distribution for 1941. Mr. Rawll says the estimated fund of $400.000.000 will be used by the recipients approximately as follows: Christmas purchases. 33.8 per cent: permanent savings, 24.5 per cent: year-end bills, 12.8 per cent: insurance premiums, 11.5 per cent: taxes. 11.1 per cent: education. travel and charity, 3.5 per cent: mortgage interest. 1.7 per cent; unclassified, 1.1 per cent. Potomac Bank Payments Start. Receiver Justus S. Wardell started payment today of a final dividend of $126.660 to 8.318 former depositors in the closed Potomac Savings Bank. Depositors are collecting their money at the receiver's office. 1429 I street N.W., as rapidly as they receive postal-card notice that the payments are ready. The checks will be delivered over a period of several days. The present dividend amounts to 6.27 per cent of the amount the depositors had in the savings bank when the doors closed in March, 1933. This payment brings the total amount paid to 81.77 per cent. the dividends amounting to $1.676.623.31. Patrons should obtain their money as soon as possible. as Mr. Wardell plans to wind up the receivership before the end of the present year. Bayly to Examine Accounts. James Parker Nolan, chairman of District No. 11. National Association of Securities Dealers. Inc., has announced appointment of Martin J. Bayly as field secretary. Mr. Bayly. a native of Baltimore, has spent 20 years in investment accounting work both for over-the-counter dealers and stock exchange members. Mr. Bayly will be the administrative employe in District 11. and his duties will include educational and examination work among members. The territory includes the District of Columbia. Maryland. North Carolina. Virginia and West Virginia. It is the first time the district has had a field secretary. Bankers Choose Detroit. The 1942 convention of the American Bankers Association will be held in Detroit October 4 to 8 President Henry W. Koeneke announced today. More than 100 members of Washington Chapter. American Institute of Banking. will attend the annual oyster supper tomorrow evening at the Hay-Adams House. John Warner, entertainment chairman, said today. Edward L. Hillyer, vice president and assistant trust officer of the Union Trust Co., was given a big surprise today when three Western Union messengers entered his office and sang with great vigor "Happy Birthday to You!" State and municipal financing for October aggregated $67.347.936. as compared with $182,492,835 in October. 1940. according to the Daily Bond Buyer. Busy Trading on Exchange. Trading was heavy on the Washington Stock Exchange today, opening with $1,000 and $1,500 transfers 1/4. in Capital Traction 5s at 105, off Washington Gas Light 5s appeared full in a $6,500 sale at 128 1/2, up a point. Washington Gas common opened with 30 shares selling at 183 and closed with 10 more moving at 1812 Capital Transit was very active 375 shares selling at 16, off half a point.