1900. Bank of Brightwood (Washington, DC)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: July 13, 1932
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini
Short Digest: b1bc1a32

Response Measures

None

Description

Bank closed July 1932 and was taken over by the Comptroller of the Currency; receiver appointed and the institution remained in receivership (liquidation) with dividends paid later. The immediate trigger was a discovered shortage/larceny by the bank president (bank-specific adverse information). Although articles mention rumors of suicide and 'fear' among depositors, there is no clear description of a distinct depositor run prior to suspension; therefore this episode is classified as a suspension leading to permanent closure (receivership).

Events (3)

1. July 13, 1932 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Discovered approximately $59,700 shortage due to alleged larceny by president Raymond L. Schreiner; bank failed to open July 13, 1932 and was closed/taken over by the controller of the currency.
Newspaper Excerpt: the bank, which did not open this morning ... disclosed that the bank ... was approximately $60,000 short ... the bank, which closed it was today
Source: newspapers

2. July 14, 1932 Receivership

Newspaper Excerpt: The controller of the currency, who has taken over the institution and is appointing a receiver ... Schreiner was charged with the larceny ... the controller ... has taken over the institution and is appointing a receiver. (Evening Star 1932-07-14).
Source: newspapers

3. February 9, 1933 Other

Newspaper Excerpt: 7,500 DEPOSITORS WILL GET $375,000 Departmental and Brightwood Banks to Make First Payment ... The Bank of Brightwood, at Georgia and Colorado avenues, closed last July 13, and up until December 31 last ... receivers will distribute checks to depositors (Evening Star 1933-02-09).
Source: newspapers

Newspaper Articles (18)

1. July 14, 1932 Evening Star Washington, DC

Article from Evening Star, July 14, 1932

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BRIGHTWOOD BANK PRESIDENT IS HELD Counsel Declares Raymond L. Schreiner's $60,000 Shortage Will Be Paid Off. Raymond L. Schreiner. president of the Bank of Brightwood, 5913 Georgia avenue, surrendered at the office of United States Attorney Rover at noon today. following the disclosure that the bank. which did not open this morning. was approximately $60,000 short. Schreiner was charged with the larceny of $59.700 and sent before United States Commissioner Turnage. where bond was set at $5,000 pending preliminary hearing a week from today. The controller of the currency. who has taken over the institution and is appointing a receiver. said liquidation would be carried out in an orderly and economical manner and that creditors need have no fear, Assigns All Property. The Controller's call, as of June 30. showed the bank, a savings institution, of L. Cobb, ment had deposits by Harvey $831,350.37. counsel at A $59.700 state- for Schreiner, put the shortage and said all of Schreiner's property had been assigned to the bank. which, with the $25.000 bond carried by the bank, 'will more than cover the loss.' Two officers of the bank also said the loss was about $60,000. and one of these asserted the only reason the institution was to run feared. as was that. closed it was today might prevent develop a the result of widespread rumors yesterday that Mr. Schreiner had committed suicide. Attorney Cobb's statement follows: 'The bank shortage will amount to $59.700. Mr. Schreiner is making assignment to the bank of all his real and personal property. which, with the bond carried by the bank in amount of $25,000, will more than cover the bank's loss. None of the proceeds taken from the bank were lost in gambling in the stock market. Approximately one-third cf the shortage is accounted for by the took fact to that repay Schreiner some $20,000 personally of bad under- loans which he had authorized as president of the bank and for which he had been criticised by the Treasury Department. Took Over Properties. "Approximately another third of the proceeds taken from the bank. namely $19.100. were invested in a local finance company, which proved a financial failure. "The remaining one-third was inlocal of vested the in depression, property Schreiner which. has because These been unable to sell except at a sacrifice. properties were taken over by Schreinen as an individual to prevent the bank from sustaining a loss, the bank having made first or second trust loans on the properties. A rumor of Schreiner's suicide was predicated upon the fact Schreiner was not bank conference at the practically yesterday. all have day being with the in bank's local bankers in an effort to affairs taken over by local interests." Schreiner, who is married and has has been its and been the two bank children. has since president organization connected and in cashier with 1922 since 1926. The bank was started at the instance of the Brightwood Citizens' Association, and he was its first cashier Prior to that he had been assistant cashier of the Union Savings Bank, which was consolidated with the Continental Trust Co. He also was assoof his he was presidency, ciated At the with time the later credited institution. election with to being the the youngest in the Born in country. bank head this anywhere city in 1898, he was educated here. As a boy he served as a page in the Senate. was in work for a time and then started career as a overseas ger. newspaper He his served banking during messen- the World War with the 104th Signal Battalion and was wounded in action. In the 10 years since the bank was opened its assets have grown from $122,000 to $1,000,000.

2. July 15, 1932 Times Herald Washington, DC

Article from Times Herald, July 15, 1932

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The Departmental 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 given by the board of directors in a statement, which said: "This action was wholly voluntary on the part bank, and was taken purely precautionary measure, in view of the recent closing of several local banking W. M. Taylor, bank examiner, is in charge the institution. The North Capitol Savings Bank, the International Exchange Bank closed yesterday, and the Bank of Brightwood. Wednesday.

3. July 15, 1932 The Washington Times Washington, DC

Article from The Washington Times, July 15, 1932

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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.

4. February 8, 1933 Evening star Washington, DC

Article from Evening star, February 8, 1933

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BRIGHTWOOD BANK STATEMENT FILED Sales Receiver Reports Steady Progress in Handling Affairs of Institution. BY EDWARD C. STONE. The Bank of Brightwood's statement of condition filed with the controller of the currency since the last Treasury bank call indicates that steady progress is being made with the present receiyership proceedings. Since the Brightwood Bank suspended operations last July cash collected from all sources has totaled $223,595 Of this sum 347.34 was collected from as425.35 was collected from interest, and rents. Cash by the receiver and held as trustee for owners amounted $1,118.88, the statement says. Up to the time the recent statement was filed, secured and preferre liabilities had been paid the amount of for the protection of assets in the form of taxes, insuretc., had to the amount and up to December 31 1932. the receivership had required $7,512.93. Over $185,000 in cash is now in the hands of the reand Brightwood Bank's assets at the of the suspension were given as $955 824 on Addiacquired that time total together with a stock of $100,000. making total of accounted for the showing total cash from stock as $011,347 on December 31, 1932. at of the statement sent to the controller amounted to $825. The report of the receiver. Claude H. Woodward, former president the Mount Vernon Bank. shows that the institution never any loan from the Reconstruction Finance Corporation. -Fifth District Mill Operations. Higher prices for cotton and higher consumption are signs pictured in the latest review of the Bank Textile contirrued at high rate in December, higher than the same month in 1931. Cotton the district December totaled bales. of which 100 751 bales were used by North Carolina mills, 107 260 bales were used South and 11,201 were used by mills. North Carolina mills used cotton last month than in December 1931, but both South Carolina and Virginia mills increased their consumption. In November, 1932 the mills in the and Virginia 246,775 bales. in December 1931, they used 198,076 bales. Total consumption in the Fifth disin 1932 to 2,403,441 bales, of cent in comparison with 2,507,332 bales used in 1931, all of the dur ing the five months of April, May, June, and August. Consumption of cotton in the Richmond Reserve district in December. 1932, totaled 49.81 per national with 99 cent in November, 1932, and 47.68 per cent in December, 1931. International Bank's Report. The semi-annual statement the International of which John Waller president, showed on January 31, 1933: Resources. Due from Banks $18,855.24 Discounts 99 Estate 50 $1,541,078.08 Liabilities. Capital Payments 4.038.41 $1,541,078.08 The International Bank is not the past year, President Walfer tells the that drastic economies have been effected The fixed policy of indebtedness continued, Mr. Waller says, and expresses the belief that present unfavorable conditions the try will be overcome by legislation and National Life Increases Assets. The National Life Insurance which has had local office 1887. increased in 1932 648, according to the annual report of President Fred Howland, just received by the Washington office, in charge of General Agent Karl S. paid to policyowners during 1932 $20,818,082. the largest disto policyowners in the company's history. This figure does not include policy loans, which reach a high decline of cent for the last six months thus marking favorable in cash requirements. Mr. Hoffman reports that during the office agency was increased 50 per cent. life insurance was increased almost 100 per cent and the annuity business was over 100 per cent. Gleaned in Financial District. On the Stock today, 000 Washington Gas Light 6s, series sold at 100. and 000 Washington Railway & Electric 4s changed hands at 90. Francis M. Eavage has been elected president emeritus the Business Many years the association met the Northwest Savings Bank: Mr. Savage being president of the bank at that time, and showing great interest in the development of the R. Ogsbury, who for the past three has district of the tabulating International Business with Washington has been to of the insurance division the with headquarters in New York City. Mr Ogsbury has been with the company 22 years. Otis Glazebrook. jr., of G. Murphy & has been elected diTri-C Mr. Glazebrook Graymur Corporation, assets of which were by Continental Corporation. New Treasury Bill Offering. Secretary Mills has announced the offer of 000,000 of 91-day Treasury bills dated February 15. upon which bids will be received until Friday at Federal Banks. Finance of Baltimore has declared the regular of 20 cents each on the Class A and B 26% common 17½ cents on the preferred, all payable March to stock of 19% The Norfolk Southern Railroad showed in report for 1932 net loss of $984 424, against one of $498,043 in 1931. In December the net loss against $102,057 December, 1931. Crown Cork & Seal. BALTIMORE, February 8 (Special) -Directors and Seal Co. have the regular quarterly dividend of 67 share on the company's pay. able March 15 to holders of record

5. February 9, 1933 Evening Star Washington, DC

Article from Evening Star, February 9, 1933

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7,500 DEPOSITORS WILL GET $375,000 Departmental and Brightwood Banks to Make First Payment. Nearly 7,500 depositors in two suspended Washington banks soon will receive $375,000 as the first payment on approved claims against the institutions, it was announced this afternoon at the office of the Controller of the Currency, Treasury Department. The Departmental Bank, 1726 Pennsylvania avenue, will distribute checks totaling $220,000 to 3,444 depositors, while the Bank of Brightwood, at Georgia and Colorado avenues, will pay $155,000 to approximately 4,000 depositors, according to the receivers of the two banks, W. B. Allman of the Departmental and Claude H. Woodward of the Brightwood institution. 30 and 20 Per Cent. The announcement, released by acting Controller F. G. Awalt, said the payments represented 30 per cent of total claims thus far approved against the Departmental Bank, and 20 per cent of total approved claims against the Bank of Brighwood. Other depositors' claims may be approved in the future, it was pointed out, in which case they will be entitled to the first payment announced today. "The checks will be available for delivery at the offices of the respective receivers within a short time," Awalt's announcement said. "The holders of claims against these suspended banks must present their receiver certificates at the time of delivery of the dividend checks." To assist Government employes in collecting their checks from the Departmental Bank, Receiver Allman announced the institution would remain open all day tomorrow and Saturday until 9 p.m. on both days. Beginning Monday, however, he said, the regular banking hours of 8:30 to 5 will be observed. No "Open" Announcement. No announcement as to keeping the Bank of Brightwood open after its regular closing time was made by Receiver Woodward. The Bank of Brightwood, at Georgia and Colorado avenues, closed last July 13, and up until December 31 last, (Continued on Page 2, Column 5.)

6. February 10, 1933 The Washington Herald Washington, DC

Article from The Washington Herald, February 10, 1933

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HERE Brightwood Will Distribute 20 Per Cent to Depositors; Departmental 30 Per Cent By RICHARD HATTON Depositors in two of the four Washington banks closed July order the Comptroller of the Currency able to their "dividend" checks today, according information given out by the Comptroller's of fice. The which have been in charge of receivers are the Bank of and the Departmental Bank About 7,500 depositors in the two banks will benefit the disbursement which will about PAYMENT AT BANKS According to office of the Comptroller the "dividend" be paid by the Departmental Bank will amount to 30 cent. while the disbursement by the Bank of Brightwood will be 20 per cent. Holders of claims against these banks must present their ceivers at the time payment made. that depositors will have to call the banks for their checks. Claude Woodward, the Bank of Brightwood. stated that institution would open at 8:30 today, tomorrow and Monday and remain open until days for convenience of those will receive their the Departmental Bank. Receiver B Allman stated that the bank would open at to day, and Saturday and remain open until and that next week the bank would be open for payments from 8:30 until Neither of the institutions had received loans from the Reconstruction Finance Corporation as had the other closed Washington banks. the International Exchange and the North Capitol of condition of the Bank of issued few days Receiver Woodward gave total assets accounted for as with total liabilities accounted for of Total collections from assets were reported as this figure added from stock assessment This stock assessment was made necesary, reported. because the deficiency was determined to be excess of the capital the bank. The receiver has collected cash Cash in the hands of the receiver and Comp troller amounts Secured and preferred liabilities paid amount Advances for protection assets. amount to and penses of receivership ported as Receiver Allman of the Departmental. and Claude H. Woodward. of the Brightwood in stitution. additional payments will be made soon assets are liquidated and claims proven.

7. February 10, 1933 Evening Star Washington, DC

Article from Evening Star, February 10, 1933

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Reserve Reporting district. *January. stores. Cities. 439 211 -24 Total 48 24 -27 Boston 54 27 -25 New York 30 12 -22 Philadelphia 13 29 -22 Cleveland 21 50 -18 Richmond 13 19 -23 Atlanta 60 33 -25 Chicago 21 9 -23 St. Louis 10 16 -21 Minneapolis 19 14 -20 Kansas City 22 10 -18 Dallas 25 71 San Francisco. -27 *Figures preliminary; in most districts the month had the same number of business days this year and last year. Reference to the December réport shows that sales in Washington were off 20.6 per cent from December, 1931. Sales in the Fifth district were down 22 per cent from the same month in the previous year. Today's January reports are more favorable than either of these statements, the first month in 1933 furnishing an encouraging trade sign. N. & W. Steamboat Officers Named. At the annual meeting of stockholders of the Norfolk & Washington Steamboat Co., held at their general offices yesterday, the following directors were elected to serve for the ensuing year: Woodbury Blair; E. C. Brandenburg, Col. Wrisley Brown, Henry N. Brawner, G. W. Forsberg, William D. Hoover, Clarence F. Norment, sr.: Clarence F. Norment, jr.; George P. Sacks, George L. Starkey and Odell S. Smith. Immediately following the stockholders' meeting the directors met and elected the following officers: C. F. Norment, sr., chairman of the board; C. F. Norment, jr., president; G. W. Forsberg, vice president; E. C. Brandenburg, second vice president and general counsel; O. S. Smith, secretary-treasurer, and J. A. Riordon, general manager. D. C Exchange Closes Monday. The board of governors of the Washington Stock Exchange voted today to close the Exchange next Monday in observance of Lincoln's birthday anniversary. The New York Stock Exchange will not be open, so all the branch offices in this city will be closed. All the banks in Washington will be open as usual. Bonds commanded good prices on the Washington Exchange today. Potomac Electric Power 6s figured in a $1,000 sale at 1081/2. Washington Gas Light 6s, Series B, came out in a $1,000 transfer at 104, and $500 Washington Railway & Electric 4s moved at 901/4 Stocks were neglected, the only sale being in Potomac Electric Power 6 per cent preferred at the strong price of 1091/2, ex-dividend. The unlisted department was given the usual Friday attention, checking up the list showing no changes in quotations. In the main list Potomac Electric Power 6 per cent preferred and 51/2 per cent preferred stocks are being quoted ex-dividend following the recent regular dividend declarations. Two Banks Paying Depositors. The Departmental Bank, 1727 Pennsylvania avenue, started distributing checks today to 3,444 depositors who had filed claims since the institution was closed last July. It is intended to pay out about $222,000 at this time, a 30 per cent "dividend" taken from the assets so far collected by the receiver, W. B. Allman. The Bank of Brightwood also started today paying out $155,000 to about 4,000 depositors, this being the amount of assets collected so far by Claude H. Woodward, receiver of the institution, located at Georgia and Colorado avenues. This was a dividend of 20 per cent.

8. February 10, 1933 Evening Star Washington, DC

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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.

9. February 10, 1933 The Washington Times Washington, DC

Article from The Washington Times, February 10, 1933

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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.

10. May 1, 1933 The Washington Herald Washington, DC

Article from The Washington Herald, May 1, 1933

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PAYMENT SOON Departmental and North Capitol Savings Savings to Distribute Part of Liquid Assets Two Washington banks, closed before the Roosevelt bank holiday, will begin paying depositors part of their savings today. They are the Departmental Bank and the North Capitol Sevings Bank, the receivers of which, through process of liquidation, gradually have been liquidating the assets. 20 PER CENT DIVIDEND The Departmental Bank, which has been the hands Receiver W. Allman, will pay 20 per cent dividend on deposits. This will amount to about $160,000. will be the second dividend paid on deposits by the Departmental, 30 per cent distribution been made last February. That released Thus with the dividend now about to paid, the Departmental will have turned back to depositors per cent of their deposits, About 4,000 depositors will receive dividend checks. These will be distributed from 8:30 to o'clock morning, and in the same period tomorrow day mornings. Those failing them at that time may call during regular business hours thereafter. The North Capitol Savings Bank, which being liquidated Receiver John S. Ryan, today will begin paying out $125,000, which on first since the bank closed. About 6,000 depositors will share. NEW DIVIDEND DUE The Bank of Brightwood now being by Receiver Claude H. Woodward. expected pay within two weeks dividend 25 per cent on deposits, which will mean the releasing of about This will bring the total of dividend to 45 per cent, 20 per cent dividend having been paid in February. Meanwhile, the thousands of positors whose money became tied when 13 banks failed open after Roosevelt holiday, are anxiously awaiting some word the Treasury Department. In the banking world. all signs point to huge merger

11. May 13, 1933 Evening Star Washington, DC

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Bank of Brightwood Depositors to Get $200,000 Monday Payment to 4,000 Will Be Second Since It Failed to Open. The Bank of Brightwood, closed since last July, will distribute $200,000 among 4,000 depositors Monday, it was announced today. The payment will be the second since the bank failed to open 10 months ago. In February $155,000 was distributed. Monday's payment represents 25 per cent of approved claims, bringing the total paid out to 45 per cent. Receivers' certificates must be presented by all depositors entitled to payment, it was announced. The bank will observe regular hours from 8:30 a.m. to 3 p.m., except on Saturday, when the closing time is 1 o'clock.

12. May 13, 1933 The Washington Times Washington, DC

Article from The Washington Times, May 13, 1933

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ompoleon Scratched; 10 In Preakness Love Tragedy REBECCA C. ROCHE Brightwood 2 MONEY CHECK OBERTSON REDS QUIT Bank to Pay HITS MEANS' OT TO RIDE AS FT HUNT $200,000 Four thousand checks, totaling approximately $200,000, will be ready for distribution to deposiTESTIMONY LEADERS HEAD PLAY tors of the Bank of Brightwood on Monday morning, Claude H. Ransom Cash Not Found When singer Replaces Him on Admitting Communism Link, Woodward, receiver, announced Hassel-Greenburg Fortune Favorite; Broker's Tip They Resign to "Unify" today. This is the second receiver's In N. J. Is Checked Declared Sound Rival B. E. F. Factions dividend to be made since the bank closed last July 13 and Gaston B. Means' sensational DAVIS J. WALSH Emanuel Levin and Harold amounts to 25 per cent. tional News Service Sports Editor The first dividend of 20 per story of the kidnaping of the Hickerson, Communist leaders cent, totaling approximately $155,MLICO RACE TRACK, of the bonus army encamped Lindbergh baby today was 000, was distributed in February. TIMORE, May 13 (I.N.S.). at Fort Hunt, Va., resigned shattered in one vital part. The second dividend is made horse, Pompoleon, was today to bring about peace available 10 months after the inMeans, on trial with Norman between rival veterans' forces. stitution closed its doors. itely out. So was one T. Whitaker, "The Fox," on a Receivers' certificates must be The resignations were unaniA. Robertson, on the charge of conspiring to secure mously accepted at a dramatic presented at the bank for payite. But, barring a few $35,000 from Mrs. Evalyn Walsh open-air meeting attended by ment, Woodward stated. No ional changes of mind more than a thousand veterans. checks will be mailed locally. McLean in connection with the A vote of thanks to them was conditions, the annual Banking hours will be from 8:30 return of the child, testified that adopted by the assembly. a. m. to 3 p. m. daily except Satness stake was ready for the $50,000 ransom turned over Immediately after the resignaurday, when the doors close at to the kidnapers by "Jafsie" was inning this afternoon at noon. tion was accepted, George D. in the possession of Max Hassel, le and three-sixteenths,

13. July 26, 1933 Evening Star Washington, DC

Article from Evening Star, July 26, 1933

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Commissioners Instruct Corporation Counsel to Seek Writs of Mandamus. BRINGS ISSUE WITH CURRENCY CONTROLLER S. Official Has Refused to Order Banks Under Conservators 1 to File Returns. Corporation Counsel Bride today was Instructed by the District Commissioners to apply to District Supreme Court next week for writs of mandamus to compel local banks now in the hands of conservators to file returns on gross earnings during the calendar year 1932. The action will be taken after next Monday at the end of the seven-month period which is allowed for the filing of the gross earnings returns, upon which there is a levy of 6 per cent. The decision to seek to compel the filing of these returns makes a direct issue between the District government and Controller of the Currency J. F. T. fo'Connor, who has refused to instruct the 12 Washington banks now in the hands of conservators to file these returns, so long as they are under operalion of the Treasury Department. Face Responsibility. The Commissioners took action in the (case today on the ground they should not accept responsibility for not attempting to force the banks to file gross earnings returns as required by District law. The controller of the currency, however, has taken a different view of the legal aspects of the case, as revealed in letters to Corporation Counsel Bride. Referring to the case of the FederalAmerican National Bank & Trust Co., which had protested to the District against the filing of a gross earnings return, since it is in the hands of a conservator, Controller O'Connor informed Mr. Bride the conservator of the bank had been instructed not to make a return for the year ending June 30, 1932. O'Connor added: Must Report Taxes. "The conservator of the subject bank has been further instructed to certify to the assessor of taxes for the District of Columbia the fact that no funds are in his hands for the payment of taxes of the character indicated," and "that in the event sufficient assets are collected by the conservator of the bank to pay the depositors and creditors of the bank 100 per cent, the conservator will then be instructed to file a return for his bank for the year ending June 30, 1932, and after payment of the depositors and creditors of the bank in full, to allow the assessor of taxes to file his claim, which will be paid prior to the remittance of any of the bank's assets to its shareholders." O'Connor also told the District that the receiver of the Bank of Brightwood had been instructed not to make a return to the assessor for the year ending June 30, 1932, to certify to the assessor that the bank is insolvent, and that no funds are in his hands for payment of taxes for which the return is requested. O'Connor said the receiver had been instructed that if and when the depositors and creditors of the bank have been paid in full, the District would be entitled to payment of taxes for the year ending June 30, 1932, prior to distribution of any funds or assets to shareholders.

14. August 30, 1933 Evening Star Washington, DC

Article from Evening Star, August 30, 1933

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SEEK BANK FILINGS OF GROSS EARNINGS Commissioners Enter Suits Against Federal and Brightwood Institutions. Seeking to compel the Federal-American National Bank & Trust Co., and the Bank of Brightwood to file reports of gross earnings for the past fiscal year for local tax purposes, two suits were filed in the District Supreme Court yesterday by the District Commissioners. Defendants named were John Poole, conservator of the Federal-American Bank, and Claude H. Woodward, receiver of the other institution. The suits pointed out that all local banks are legally obligated to make a return of gross earnings at the close of each fiscal year. Tax Assessor William P. Richards certified he had asked the two banks for such returns, but that they have not been filed. Justice Daniel W. O'Donoghue signed an order requiring the bank officials to answer the suits by October 2. The Commissioners also filed mandamus suits, seeking to compel 14 private citizens to file personal tax returns. These defendants are: John Carey, Woodward Building; Clifford Allen. 4500 Broad Branch road; Frederick M. Bradley, Colorado Building: Dr. J. L. Elliott, Medical Science Building: L. Edward Flaherty, International Building: J. H. Gillis, Mather Building: J. B. Grice, Munsey Building; Charles W. Jones, Munsey Building: H. L. McCormick, Munsey Building: Junior Owens. 3010 Cleveland avenue: Dr. J. W. Palmer. International Building; Dr. G. N. Payette, Kresge Building: Dr. N. K. Rogers, 2737 Devonshire place, and Jerome Saks. 3403 Woodley road. The suits were filed by Corporation Counsel William W. Bride and his assistant, Francis H. Stephens.

15. February 13, 1934 Evening Star Washington, DC

Article from Evening Star, February 13, 1934

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H.O.L. C. OUTLINES MORTGAGE POLICY To Refund All Eligible Funds Held by Receivers or Conservators. The District office of the Home Owners' Loan Corporation is in the process of refunding all eligible mortgages held in financial institutions in hands of receivers or conservators, in accordance with a policy announced last month by the Board of Directors of the Home Owners' Loan Corporation. In communications to those banks and financial houses as yet unopened in the District, Paul J. Frizzell, manager of the H. O. L. C. here, during the last week has requested each of them to furnish him with applications from every home owner in Washington whose mortgage is in such ownership. To Liquidate Assets. The action is being taken, Frizzell explained, to liquidate such assets as quickly as possible for the benefit of depositors in these institutions, and also to provide home owners whose mortgages are in such a category with permanent financing and remove from them the fear of having their mortgages called at maturity. It is estimated that more than 760 of such mortgages are held in closed banks here, having a total value in excess of $2,000,000. Frizzell's office has sent out communications to 19 banks either in the hands of conservators or receivers. He has asked them to either have the home owners whose mortgages they hold to file an application with the H.O.L.C., or that the banks furnish him with the names of the home owners so that his office may solicit the applications. Communciations Sent Out. The communication went out to the Franklin National Bank, Federal American National Bank & Trust Co., District National Bank, Potomac Savings Bank, Washington Savings Bank, Northeast Savings Bank, WoodridgeLangdon Saving & Commercial Bank, United States Savings Bank, Seventh Street Savings Bank, Mount Vernon Savings Bank, Industrial Savings Bank, Park Savings Bank, Chevy Chase Savings Bank, the Departmental Bank, Bank of Brightwood, International Exchange Bank, North Capitol Savings Bank, Continental Trust Co. and Commercial National Bank. Seven of the above named banks opened as members of the Hamilton National Bank merger, and the Chevy Chase Savings Bank is now a branch of Riggs National Bank.

16. July 7, 1934 Evening Star Washington, DC

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BRIGHTWOOD BANK TO PAY 10PER CENT Distribution of Third Dividend Set Monday-Total Will Be 55 Per Cent. Payment of a 10 per cent dividend, for which about $100,000 is available, will begin Monday at the Bank of Brightwood, Claude H. Woodward, receiver, announced today. This is the third dividend to be paid by the institution, which was closed in July, 1932. The first dividend of 20 per cent was paid in February, 1933, and the second, of 25 per cent, was paid in May, 1933. Already a total of $356,550.36 has been paid out. In order to get their new dividend, depositors are asked to present their receiver's certificate as proof of claim. The hours at the bank will be from 8:30 to 3, daily, except Saturday, when the bank will close at noon. No checks will be mailed to depositors, except to those at distant points.

17. July 9, 1934 Evening Star Washington, DC

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BRIGHTWOOD BANK PAYS OUT $100,000 Unpaid Deposits of 19 District Institutions Amount to $22,000,000. With the Bank of Brightwood today out its to was amounting paying about $100,000, third dividend, it learned that the 19 closed banks in the District have a total of unpaid deposits amounting to about $22,000,000. In a statement made public by Controller of the Currency J. F. T. O'Connor it was disclosed that nearly $21.000,000 had been unpaid by 16 closed the unbanks banks, which but still figures have Franklin substantial omitted National, three paid deposits-the the Mount Vernon Savings and the Industrial Savings Bank. None of these is in receivership, the first two were absorbed by the Washington Mechanics Savings Bank, which later became the City Bank of Washington, and the Industrial Savings Bank still is trying to reorganize. Total Liability $40,836,641. The total deposit liability of the 16 receivership banks at the time of ciosing amounted to the controller's and ing to $40,836,641, banks statement, have accordout of this these paid a total of $19,909,464, leaving an unpaid deposit liability of $20,927,177. Adding to this the unpaid liability of the three closed banks not listed would bring the figure nearer $22,000,000, it was believed. Details are shown in the controller's statement published herewith. Efforts are being made by the controller and his receivers in charge to liquidate the banks as orderly as possible, and pursuant to this, the assessment cent was on stockholders urday of 100 per Official of five levied notices of Sat- the receivership banks. to stockholders of the Federal-American National Bank & Trust Co. were by receiver being signed for this today institution, Cary A. and Hardee, will be mailed this week by registered mail. Norman R. Hamilton, receiver for the four other banks whose stockholders are assessed, also will push forward the work of collecting the assessment from shareholders in the District National, Potomac Savings, Bank. of Savings Northeast Savings The and primé Seventh assets Street all these banks were sold to the new Hamilton National Bank merger, and it is only the so-called class B assets which remain in the hands of the receivers. Large loans were made by the Reconstruction Finance Corporation to all of these five banks, and the receivers have been paying off these loans as rapidly as possible before they will be able to declare another dividend to depositors. More Loans Sought. Efforts are being made to obtain more loans from the R. F. C., it was learned from Controller of the Curnew is rency payoff O'Connor. legislation, Under the the R. F. C. bank authorized to make loans on values as of normal times, instead of depressed values. This applies also to real estate large holding of which proved one of the difficulties in the case of some of the closed Washington banks. Before the bank payoff law, the R. F. C. made loans on the basis of current market valuation. Speculation was rife today as to the possibility of new dividends from some of the closed banks, but there was no definite information as to when any of the closed banks may pay another dividend. The Bank of Brightwood began this morning its third dividend of 10 per cent, for which $100,000 was available, according to Receiver Claude A. Woodward. This brings the total payments to up to 55 as had depositors per cent, of this they institution previously received two dividends of 20 and 25 per cent, respectively. The controller's statement in another column of The Star is of July 7 and does not include the new 10 per cent dividend paid today by the Bank of Brightwood.

18. October 20, 1935 Evening Star Washington, DC

Article from Evening Star, October 20, 1935

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BANK'S ASSETS $112,168 The Bank of Brightwood, which was closed in July, 1932; still has remaining asests of an estimated value of $112,168.10, according to the latest quarterly report of the receiver, Claude H. Woodward, made public yesterday. This bank has paid dividends totaling 55 per cent, amounting to $436,673.81. It has repaid its loan of $147,000 from the Reconstruction Finance Corp. and now has cash on hand amounting to $8,972.27.