1942. Chevy Chase Savings Bank (Washington, DC)

Bank Information

Episode Type: Run → Suspension → Reopening
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: d37fcb47

Response Measures

Partial suspension, Full suspension

Other: Bank was purchased by Riggs National Bank and operated as a branch; assets later liquidated by a receiver (conservatorship then receivership).

Description

March 1933 heavy withdrawals prompted many DC savings banks, including Chevy Chase, to invoke time-withdrawal clauses (60-day/limited percentage). The bank was part of the March banking holiday closures and later its prime assets were purchased by Riggs National Bank and it reopened as a Riggs branch by September 1933. Classification: run led to suspension (bank holiday/government action) and eventual reopening as branch.

Events (3)

1. March 1, 1933 Run

Cause: Macro News
Cause Details: Heavy withdrawals during the March 1933 banking crisis/banking holiday period; general panic/nervousness leading to invocation of time-withdrawal (60-day) rules.
Measures: Invoked 60-day clause/limited withdrawals (time clause) and permitted limited percentage withdrawals to protect depositors.
Newspaper Excerpt: Among the local banks which have adopted this rule... are: United States Savings Bank, Chevy Chase Savings Bank... Several savings banks here invoked the 60-day clause on withdrawal of savings accounts.
Source: newspapers

2. March 6, 1933 Suspension

Cause: Government Action
Cause Details: Banks were ordered closed by presidential proclamation (the March 1933 banking holiday), placing many institutions under conservators or receivership.
Newspaper Excerpt: ...the money has been tied up since March 6, when all banks were ordered closed by presidential proclamation.
Source: newspapers

3. September 16, 1933 Reopening

Newspaper Excerpt: Since that time none of the banks placed under conservators here has opened except the Chevy Chase Bank, which was bought by the Riggs National Bank. (Evening Star, 1933-09-16).
Source: newspapers

Newspaper Articles (18)

1. March 1, 1933 Evening Star Washington, DC

Article from Evening Star, March 1, 1933

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LOCAL BANKS ACT TO PROTECT FUNDS District National Limits Withdrawals-Others Invoke 60Day Clause on Savings. The District National Bank opened today on a 5 per cent withdrawal basis, following action taken by the directors early this morning, for the protection of depositors. President Joshua Evans, jr., announced. (The following notice was addressed today to the depositors in the bank: "Owing to heavy withdrawals of deposits during the last few days, and in order to safeguard all of our depositors, the board of directors has passed a resolution allowing depositors to withdraw 5 per cent of their balances in this bank at the close of business February 28, 1933, until further notice. All new deposits and new accounts opened March 1, 1933, and thereafter are subject to 100 per cent withdrawal at any time after actual realization cf funds by the bank." 60-Day Clause Invoked. The officials stressed the fact that all deposits made today and after this date can be withdrawn in full at any time. It was announced in the financial district that most of the local building and loan associations have invoked their time clauses on withdrawals, limiting the amount to $100. For larger amounts notice must be given in advance. Officials said the rule would be in force for the present. Several savings banks here invoked the 60-day clause on withdrawal of savings accounts. Some of these banks permit the withdrawal of 10 per cent up to $100. Above that amount, the 60day or two-month notice, is being required. Protective Measure. Among the local banks which have adopted this rule-the same plan which has been adopted extensively in other cities-are: United States Savings Bank, Chevy Chase Savings Bank, Security Savings & Commercial Bank, Park Savings Bank, Seventh Street Savings Bank, Washington Savings Bank, Anacostia Bank, Mount Vernon Savings Bank and the Northeast Savings Bank. (In an earlier edition of The Star the name of the Washington Mechanics' Savings Bank was included with those involking the 60-day clause. This was incorrect.) Officials said the action was taken merely as a protective measure, both for the banks and for the depósitors. The Commercial National Bank. which closed yesterday, has been placed in the hands of Robert C. Baldwin, a receiver of the office of the controller of the currency. Mr. Baldwin has taken over the receivership from J. L. Bailey, who took charge when the bank was closed. It was explained that Mr. Bailey will remain for a while in his capacity as a national Bank examiner to assist Mr. Baldwin. Has Considerable Experience. In the meantime, it was said at the Treasury Department, the new receiver probably will use a large part of the staff of the bank for his work. The new receiver. before Joining the office of the Controller of th è Currency, had considerable liquidating experience. Under the auspices of the Government he has been receiver for e bank at Lynn, Mass., since the latter part of 1931, and has been directing its liquidation. An official of the Treasury said in regard to Mr. Baldwin: "By reason of his ability in liquidating that bank, the Treasury Department saw fit to transfer him to the Commercial National Bank. We have every confidence that he will administer the affairs of the institution in a manner satisfactory to all concerned."

2. September 16, 1933 Evening Star Washington, DC

Article from Evening Star, September 16, 1933

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CONSIDER OPENING DATE OF HAMILTON Bank Directors Meeting Today in Effort to Reach Final Decision. BULLETIN. The last legal step in the local courts looking toward the opening of the Hamilton National Bank was taken in District Supreme Court t day when Justice Jennings Bailey approved leases of seven bank properties to the new institution at a total annual basic rental of $45.500. The leases were executed by conservators of five of seven banks involved. three of the properties belonging to the old Federal-American National Bank & Trust Co. The Board of Directors of the new Hamilton National Bank was meeting today to make a final decision on the date on which the bank is to open for business. Immediately after the decision is made, conservators of the seven banks which will sell assets to the new institution, will begin the task of calculating the value of the assets to be turned over. with adjustments for interest due, on the opening date. This task, which involves a separate calculation for each note. bond. mortgage or other assets to be turned over, will occupy not less than a week. so that the earliest date that could be selected is Monday, September 25. On the day selected. depositors in the seven banks going into the merger will be able to obtain one-half of the amounts to their credit in the closed banks by application to the Hamilton Bank. The money has been tied up since March 6, when all banks were ordered closed by presidential proclamation. Since that time none of the banks placed under consrevators here has opened except the Chevy Chase Bank, which was bought by the Riggs National Bank. The seven banks going into the merger are the District and FederalAmerican National Banks and the Woodridge-Langdon, Northeast, Potomac, Seventh Street and Washington Savings Banks. There are nine other closed banks here. Of these, the Commercial National, Park Savings, North Capitol, International Exchange, Departmental Banks and the Bank of Brightwood are in the hands of receivers and will not reopen. The Franklin National, United are in States ings Savings the and hands Mount of conservators, Vernon Savwho are negotiating for the opening of their respective banks.

3. October 22, 1933 Evening Star Washington, DC

Article from Evening Star, October 22, 1933

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These were declared Savings Bank. insolvent and placed in the hands of receivers in July. Each has declared a dividend. Only two banks have been turned over to receivers since January-the Commercial National Bank and the Park Savings Bank. The former has paid a dividend of 20 per cent, but the Park Savings Bank, where there is a shortage estimated at more than $2,000,000, is the center of an involved court battle, which will come to trial next Wednesday morning. The Commercial National appears clearly to be in line for help from the Deposit Liability Board, but the status of the Park Bank, where so little assets remain, virtually puts it in a class by itself. 12 in Conservators' Hands. In the third general class of closed banks here are 12 now in the hands of conservators. This includes seven institutions, whose prime assets were taken over by the new Hamilton National Bank merger, but whose remaining assets are in the hands of conservators. Controller of the Currency O'Connor plans to place these remaining assets in the hands of two receivers shortly. The new Hamilton National Bank is moving substantially forward. according to reports, and is not officially involved in any way by the liquidation of assets remaining in the hands of conservators. There is one link, however, to the advantage of the Hamilton Bank, in the "right of substitution" clause of the contract by which the conservators sold their prime assets to the Hamilton. Within six months after the execution of the contract, the Hamilton may substitute any of the assets it bought, for any of the assets remaining in the hands of conservators. So that, although the controller of the currency may place these remaining assets in the hands of two receivers, in place of the present conservators, the old tie of that "right of substitution" clause still would hold. It may complicate the business of attempting to get new R. F. C. loans on these remaining assets. It is understood, however, that the controller himself is interested in this subject, here in the National Capital, and will give attention to it, besides the study to be given by the local committee of the Deposit Liquidation Board. Another in Litigation. Another of the banks in the hands of a conservator. the United States Savings Bank, is in litigation, with trial in its case scheduled for November 6. Other conservatorship banks are the Mount Vernon Savings Bank, the absorption of which by the Washington Mechanics' Savings Bank, through a special merger agreement, is expected to be effected this week; the Franklin National Bank. which is trying to reopen on a plan of its own, and the Industrial Savings Bank. colored institution, which is working on a plan of reorganization to become a national bank. Part of the assets of the old Chevy Chase Savings Bank which since has become a branch of Riggs National Bank, are still in the hands of a conservator.

4. November 1, 1933 Evening Star Washington, DC

Article from Evening Star, November 1, 1933

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RECEIVERS TO PUSH BANK LIQUIDATION Former Governor of Florida and Publisher Are Appointed. Former Gov. Cary A. Hardee of Florida and Norman R. Hamilton, publisher of the Portsmouth, Va., Star, today were appointed by Controller of the Currency O'Connor to take charge of the liquidation of eight banks here now in the hands of conservators. Mr. Hardee assumed his new duties today, taking charge of the assets remaining in the Federal-American National Bank and Trust Co. and the old Chevy Chase Savings Bank. Mr. Hamilton is not expected to arrive here until November 8. when he will begin taking over one bank receivership at a time until he is in charge of the remaining assets in the other six banks in the hands of conservators, as follows: The District National Bank, the Northeast Savings Bank, the Seventh Street Savings Bank, the Washington Savings Bank, the Woodridge-Langdon Savings and Commercial Bank and the Potomac Savings Bank. Purchased by Riggs. The Chevy Chase Savings Bank was purchased by the Riggs National Bank several months ago and is now operated as a branch of Riggs. Assets remaining in the hands of the conservator there, John C. Walker, will be liquidated by Mr. Hardee. The Riggs National Bank had paid the first dividend to depositors of the Chevy Chase Bank when it became a branch. The other seven banks thrown into receivership today were members of the Hamilton National Bank merger, which bought their prime and liquid assets to make available a dividend of 50 per cent to depositors. Controller O'Connor pointed out that the plan of appointing two receivers instead of eight was decided upon so as to lessen expense. "It will save depositors large sums which (Continued on Page 2, Column 8.)

5. November 1, 1933 The Tampa Times Tampa, FL

Article from The Tampa Times, November 1, 1933

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HARDEE NAMED BANK RECEIVER m Florida Governor Gets Federal Post at Washington Washington, Nov. 1.-(AP)comptroller of the announced today that Cary Hardee, former governor of Florida, and Norman R. Hamilton, Virginia publisher, had receivers liquidate eight District of Columbia banks now operated by conservaThe comptroller explained the move designed to hasten payment of dividends to depositors from assets remaining other District banks took over of the business of the banks be liquidated. The eight local institutions are the American National Bank, the Chevy Chase Savings Bank, the District National Bank, the Northeast Savings Bank, the Seventh Street Savings Bank, the Washington Savings Bank, the Woodridge Langdon Savings and Commercial Bank and the PotoSavings Bank. Hardee was governor of Florida from 1921 to 1925. He has interested in banking since 1902, when he served as director, vice president and president of this bank. Still an interest in this he president of the Commercial Bank of Live Oak. Hamilton, publisher of the Portsmouth Star, was born and reared in Virginia. For several years he has been director of bank Norfolk, now director of the Mutual Building there 1913 to 1922 collector of customs at News, representing both the treasury and state departments enforcing laws Virginia waters. In this position he was virtually the head of annual income of approximately Under testative plans, the FedAmerican and the Chevy Chase Savings Banks will be charge of Hardee; while Hamilton take charge of the District Northeast Savings, Street Savings, Washing ton Woodridge- Langdon and the Potomac Savings Banks. Hardee assumed his duties today. but Hamilton was not pected in until Nov. Comptroller O'Connor said the appointment of two receivers instead of eight was to minimize expense.

6. November 1, 1933 The World-News Roanoke, VA

Article from The World-News, November 1, 1933

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HAMILTON AND HARDEE NAMED BANK RECEIVERS Will Liquidate Eight District of Columbia Banking Connor. comptroller the currency announced today that Cary Hardee former Hamilton Virginia publisher, had appointed Bquieight District Columbia banks comptroller explained constructive, hasten payment dividends depositors assets remaining trict banks took part business the banks be liquidated. eight institutions Federal National the Chevy Chase trict National Northwest Savings the Street Bank the Washington Savings Bank the Savings Commercial Bank and the PoFlorida 1921 1925 has interested banking since 1902. he ganized First National Bank Live He served director and president this bank Still retaining interest this institution president the Commercial Bank of Portsmouth Star born and reared Virginia. For several years he has director bank Norand director the Mutual Building Association there From to 1922 he collector customs representing the Treasury enforcing trality laws in Virginia In this position virtually the head business with annual income approximately $5,000,000 Under tentative plans. Federal American and the Chevy Chase ings banks will Harwhile Hamilton will charge District Northeast Savings, Seventh Street Washington Savings, and the Potomac Savings banks. Hardee assumed his dutles Hamilton was not expected in Washington November Comptroller pointment two instead eight was to minimize expense.

7. November 2, 1933 The News and Advance Lynchburg, VA

Article from The News and Advance, November 2, 1933

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and Harry Flood Byrd, the state's The receivership appointment was made by J. O'Connor, comptroller of the currency. Served Under Wilson Hamilton was customs collector during the administration of President Woodrow Wilson and campaign to have him named again was started before Mr. Roosevelt was Under the distribution of patronage between Glass and Byrd. selection the collector left to the junior senator. Glass, backed up Byrd in his selection of Truxtun. Cary A. Hardee, former governor of Florida, was the other receiver named with Hamilton. They will have charge of the Federal-A National Bank. the Chevy Chase Bank, the Seventh Street Savings Bank. the Washington Savings Bank, the Woodridge-Langdon Savings and Bank and the Potomac Savings Bank. Under the tentative plan, Hardee will have charge of the first two and Hamilton the remainder. Hamilton, publisher of the Portsmouth Star, was director of bank at Norfolk for several years and now is on the board of the Mutual Building Association there. During his eight year term as collector he had charge of enforcing neutrality laws in Virginia waters. He enterned the German raiders "Prinz Eitel Frederick' and "Kron Prinz Wilhelm," and the German prize ship "Appam" at Newport News. He also boarded the Russian steamer "Omsk," loaded with $3,000,000 worth of allied foodstuffs and placed under arrest the heavily armed crew of 47 mutinous

8. November 8, 1933 Evening Star Washington, DC

Article from Evening Star, November 8, 1933

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BANK DEPOSITORS ARE REASSURED O'Connor Promises Orderly Marketing of Assets of Eight Institutions. Controller of the Currency J. F. T. O'Connor, in a formal statement today, announced that appointment of receivers for banks in this city "does not mean that the assets of such institutions will be thrown upon the market indiscriminately." The controller's statement was made in response to many requests concerning the policy to be carried out by the two receivers recently appointed to liquidate the assets of eight banks here. "In the first place," the controller pointed out, "it is obviously impossible to throw assets on the market at once. Moreover, even if this could be done, it would be poor policy, since the controller, acting in the capacity of trustee, has the duty of realizing as much as possible for creditors." In this connection. the controller pointed out that his position on this point was made clear in his speech to the American Bankers' Association last September 7. Minimum Expense Promised. Mr. O'Conner also called attention to the fact an orderly liquidation will be accomplished at a minimum expense. The average cost of liquidating national banks, he added, has been 3.9 per cent of book value and 6.65 per cent of actual collections. These percentages, he said, are much lower than found in "ordinary receiverships." Under the law it was necessary to appoint receivers to replace conservators, the controller pointed out, "in order that proper notice to creditors could be given and the trust finally liquidated. The controller in these cases," he continued, "has no option. He must appoint receivers." This interpretation of policy was designed particularly to apply to the operation of receiverships to which the controller recently appointed Cary Hardee of Florida and Norman R. Hamilton, Portsmouth, Va. Will Distribute Checks. Mr. Hardee, who was former Governor of Florida, is liquidating two banks here. the Federal American National Bank & Trust Co., which he has already taken over, and the Chevy Chase Savings Bank, of which he soon will assume charge. Mr. Hamilton yesterday took over the District National Bank and soon also will take charge of these institutions: Potomac Savings Bank, Washington Savings Bank, Northeast Savings Bank, Woodridge-Langdon Savings & Commercial Bank and the Seventh Street Savings Bank. Meantime, Controller O'Connor announced that Robert C. Baldwin, receiver of the Commercial National Bank, will start distribution of checks in payment of the second dividend to depositors next Monday. This will be for 30 per cent, and will be available to 34,000 depositors. When distribution of this 30 per cent is completed it will make a total of 50 per cent paid to the creditors of this bank in the aggregate amount of $3,000,000.

9. November 15, 1933 Evening Star Washington, DC

Article from Evening Star, November 15, 1933

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by the receiver to the conservator, John Poole, former president of the bank. Mr. Hardee also is scheduled to take over the remaining assets of the Chevy Chase Savings Bank. Meantime, counsel for depositors in the Park Savings Bank are preparing an amended bill designed to establish before the court a liability of directors and stockholders of this bank. Justice Jesse C. Adkins Monday signed in District Supreme Court the decree putting into effect his recent decision denying a court receivership for this bank, but leaving open the question of liability of directors and stockholders. The depositors are endeavoring to collect as much as possible to make up for a shortage of more than $2,000,000 discovered in the bank after the sui-

10. December 14, 1933 Evening Star Washington, DC

Article from Evening Star, December 14, 1933

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M'LEAN APPOINTED TOD. C. BANK POST Former Governor of North Carolina to Aid Liquidation in Capital. Angus W. McLean. former Governor of North Carolina, who has been practicing law here for about six months, today was appointed by Controller of the Currency J. F. T. O'Connor to be attorney for the six Washington banks now being liquidated by Receiver Norman R. Hamilton. Mr. McLean is the third prominent public figure to be brought into the Washington closed bank situation. Mr. Hamilton, who has already taken over three of the six local banks which he is to liquidate, was appointed from Portsmouth, Va., where he is the publisher of the Portsmouth Star. Former Gov. Cary Hardee of Florida has taken charge of liquidation of the remaining assets of two banks. the old FederalAmerican National Bank & Trust Co. and the Chevy Chase Savings Bank. The six institutions which will be served by former Gov. McLean as attorney are the District National Bank, the Northeast Savings Bank and the Washington Savings Bank, which have been taken over officially by Receiver Hamilton, and these three others: Seventh Street Savings, Woodridge-Langdon Savings & Commercial and the Potomac Savings Bank. In announcing McLean's appointment, a statement from the office of the controller said: "Mr. McLean brings to his new duties a wealth of experience as a lawyer and as a public servant. A practicing lawyer in his native State for the past 30 years, he was chosen president of the North Carolina Bar Association in 1920. During the World War and for two years thereafter he was director and then managing director of the War Finance Corporation in Washington. "Mr. McLean also served during 1920 and 1921 as Assistant Secretary of the Treasury, in charge of customs, internal revenue, prohibition enforcement f and secret service. Throughout the I same period he also served as chairman 1 of the Railway Loan Advisory Committee, for Secretary of the Treasury D. F. Houston. "From 1925 to 1929, Mr. McLean was Governor of North Carolino. "He has maintained, with his associates, law offices in Lumberton and Raleigh, N. C., for many years. while he established a law office in the : Southern Building here about six months ago. He has been in active practice here since then." Mr. McLean took over his new duties as attorney for Hamilton today. Headquarters for liquidation of the six banks is in the District National Bank Building on G street near Fourteenth.

11. January 14, 1934 Evening Star Washington, DC

Article from Evening Star, January 14, 1934

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Second Bank Consolidation Virtually Assured by Action. WAIVER OF 35 PER CENT OF FUNDS TO BE ASKED Mt. Vernon Savings Disposes of All Quota of Stock Required for New Institution. Paving the way for release of 65 per cent of deposits from the Franklin National Bank, amounting to about $2.000.000, Controller of the Currency F. T. O'Connor late yesterday signed the official plan for reopening the Franklin Bank as a member of the Mechanics-Franklin Savings Bank merger This vital action virtually assures the formation of the second bank merger to result out of the 13 District of Columbia banks which were unlicensed at the close of the President's banking holiday in March. The first merger, formed from seven unlicensed banks built up the new Hamilton National Bank, which has been operating with it steadily increased success since opened in September and which now has deposits of more than $9,000 000 This second merger is built around the Washington Mechanics Bank, which never was closed except during the banking holiday along with every bank in the country. and which, has been operating always on a 100 per cent basis. The first unit to join the second merger was the Mount Vernon Savings Bank. which now has sold all of its quota of stock in the new merger and has also received from depositors the required 75 per cent of waivers necessary toward reopening Forms Nearly Complete. The Franklin National Bank. under terms of the plan formally approved now by the controller, will ask its depositors to waive 35 per cent of their deposits in order to restore the bank to solvency Acceptable assets of the Franklin Bank will be sold to the Mechanics, in order to make available 65 per cent of the depositors' money when the Franklin reopens as a part of the merger The necessary forms for this waiver were virtually completed last night by experts at the Treasury Department and it is expected that they will be turned over to the bank tomorrow or Tuesday to be printed. The bank will then rush these in the mails to depositors. It will be necessary to receive waivers from depositors holding 75 per cent of the total deposits of the Franklin Bank before the plan can become effective. Much of the success of the plan therefore will depend now upon the depositors themselves and the speed with which they return to the bank the necessary waivers The Franklin Bank also will launch a campaign to sell stock in the new merger to build up the capital structure by $100,000. It is believed that this stock will sell for the same price at which it was offered by the Mount Vernon, $20 a share, half of which goes to par value and half to surplus. Lee to Be Vice President. It is understood that John B. Cochran, president of the Franklin Bank, is to be chairman of the board of the merger, while Thomas P. Hickman, vice president of the Franklin, will be vice president of the merger and will be in charge of the branch at the old Franklin location, at Tenth street and Pennsylvania avenue The Mount Vernon Savings Bank brings to the merger Frank W. Lee president of the Mount Vernon, who is to be a vice president of the merger Depositors of the Mount Vernon have waived 60 per cent in order to receive 40 per cent when the bank opens. This is expected to release about $800, 000 in deposits. The two mergers thus provide for reopening 9 out of the 13 unlicensed banks. One of the others, the Chevy Chase Savings Bank, became a branch of Riggs National Bank. The Industrial Savings Bank colored institution, is now selling stock in a plan to reopen alone as the Industrial Bank The Park Savings Bank where there is an estimated shortage of about $2. 250,000 is still in litigation with a date set yesterday, for January 25 when the District Supreme Court will hear both the equity and law suits brought by the Depositors Committee in an effort to establish the liability of directors and to collect from them as much as possible of the loss. The equity and law suits in this bank had been filed separately but have now been set down for simultaneous hearing. Conservator Remains. The status of the United States Savings Bank is still very uncertain. Col. Wade H. Cooper, president, has appealed from an adverse decision of the District Supreme Court which had denied him a writ of mandamus to force the Treasury to reopen the bank on a Cooper plan. which had been rejected by the Treasury Department Cooper reopened negotiations to get the bank open by itself, outside of a merger, and offered to advance certain money to rebuild the surplus of the bank. But these negotiations have not vet reached a successful conclusion. The bank still is in the hands of its a conservator, Wilbur H. Zepp, who is Treasury representative. Meantime. Col. Cooper has been indicted by the Federal grand jury on charges of misapplying funds in the Commercial National Bank, of which he was president and which now is in the hands of a receiver. Cooper charges the indictment was a "frameup" on the part of Treasury officials. What will happen to the United States Savings Bank is a question of vital interest to more than 14,000 depositors, but the prospect of reopening this bank is still uncertain.

12. 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

13. May 26, 1934 Evening Star Washington, DC

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SPECIAL NOTICES. I WILL NOT BE RESPONSIBLE FOR ANY debts contracted by any other person than myself. CLARENCE K. YOUNG. 2 Sheridar ave., Albany. N. Y. TREASURY DEPARTMENT. OFFICE OF the Comptroller of the Currency. Washington. D C. May 24. 1934.-Notice is hereby given to all persons who may have claims against "Chevy Chase Savings Bank," Washington. District of Columbia. that the same must be presented to Cary A. Hardee. Receiver. with the legal proof thereof. within three months from this date or they may be disallowed. J F. T O'CONNOR. Comptroller of the Currency. THE HOME BUILDING ASSOCIATION organized 1883. 2006 Pennsylvania avenue n.w. phone West 1227. has funds to loan on homes in the District of Columbia. repayable monthly. secured by first deec of trust Nc commission or premium charged. Its installment shares offer an ideal way to save monthly and are now earning 5% interest compounded monthly. Ask about it. FRED L. VOGT Pres., JAMES M. WOODWARD Sec., W. K. REEVE. Treas

14. July 11, 1934 The Washington Times Washington, DC

Article from The Washington Times, July 11, 1934

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EARLY PAYMENT OF DIVIDEND PROBABLE Remaining Assets Unlikely to Provide Full Settlement For Depositors That a severe blow in the form of assessments will soon be dealt stockholders of the defunct Chevy Chase Savings Bank appeared almost a certainty today. When the bank closed its doors it had deposits aggregating $732,203 and has since paid out in dividends $468,668. Its prime assets were taken over by the Riggs National Bank, and attempts are being made to quickly liquidate remaining assets, and notes. Officials Are Silent It appeared unlikely today that liquidation of these notes would bring in enough to pay off depositors in full, which leads observers to believe that the Comptroller of the Currency will levy assessments against stockholders to make up the difference. The possibility of assessments would not be discussed by either officials of the Treasury Department or the bank's receiver, Cary A. Hardee. It was learned, however, that an early substantial payment to depositors is probable. The bank has succeeded in paying off its debt to the Reconstruction Finance Corporation. The outlook for the FederalAmerican National Bank and Trust Company is not so good, and any nearby payment of diviS dends is unlikely. It was learned 1 on high authority that depositors . in the bank, which also comes i under the jurisdiction of Mr. Hardee, will ultimately suffer a substantial loss. : : Owes RFC $2,000,000 . , The bank owes about $2,000,000 < to the RFC, and although it is possible to borrow more money : from that institution on assets already put up as collateral, the : future borrowings, if any, would be scant. When the bank collapsed it : had deposits totaling $9,583,793 , and has since paid off $5,271,086, according to figures given out today at the office of the Comptroller of the Currency. Letters to stockholders of the bank were being sent out today s pursuant to the recent order of the Comptroller of the Currency . that assessments aggregating $2,, 900,000 must be paid by the 642 : stockholders. It was considered unlikely that anything like this amount would be forthcoming from the stockholders, many of whom are in financial straits. Observers believe the receiver will be fortunate if he gets one-third of the amount.

15. January 14, 1935 Evening Star Washington, DC

Article from Evening Star, January 14, 1935

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SEEN IN PROSPECT FOR CLOSED BANK Federal-American May Give Depositors Added 10 Per Cent. DEFINITE PREDICTION AS TO TIME NOT MADE Receiver Hardee Reports on Condition of Institution to Controller of Currency. Prospects for another dividend of 10 per cent for depositors of the insolvent Federal-American National Bank & Trust Co. are seen in the quarterly report of the receiver, Cary A. Hardee, available today No definite official prediction can be made now as to the possible date of payment, as this may depend somewhat on a court case now pending, which questions the stock assessment: Receiver Hardee declined to announce a dividend, as this statement must come from the controller of the currency. But figures in this report to the controller showing condition of the receivership at the end of 1934 give ample hope of a dividend soon. The Federal-American is the largest insolvent bank in Washington, and declaration of another dividend would have wide-spread effect throughout the city. It would mean payment of more than $859,000 to more than 25,000 depositors. The new dividend would be the second paid out of this institution, and would bring the total dividends up to 60 per cent. The first dividend of 50 per cent was made possible and was paid in September, 1933. when the Federal-American reorganized and reopened as part of the new Hamilton National Bank merger. Since the receiver has taken charge the total paid on the original 50 per cent dividend has mounted to the sum of $4,134,487.73, out of the total deposit liability of $9,692,017.91 Total offsets allowed by both the conservator and the receiver amounted at the end of 1934 to $1,051,517.68, and total losses were charged off. cluding those on assets and stock assessment amounting to $561,025.80 Payment Above Average. The stock assessment, out of which most of the cash which will be ready for a 10 per cent dividend comes, is being paid by shareholders owning the $2,000,000 capital stock of the bank. The assessment was for 100 per cent and is being paid at rate said to be in excess of the average assessment collections over a period of years in the liquidation of national banks by the controller of the currency. Cash collected from the stock assessment by the end of 1934 amounted to $727,575.41, which is about per cent of the entire $2,000,000. This constitutes the largest part of the item marked "cash in hands of receiver and controller, which amounts to $870,567.78 From this sum of more than $800, 000 cash now ready there must be subtracted a total of $36,289.61 held trust for owners of various kinds, leaving about $834,000 actually available for payment of a 10 per cent dividend, about $25,000 short of that actually needed At the rate of collections, however, this is expected to be coming in soon. There are still more than $348,000 in unsecured liabilities whose owners have not proved their claim, nor asked for payment. Sufficient funds must be on hand for a dividend to meet demands from these people should they suddenly file their claim and ask for payment. The total deposit liabilities, including both those for which receivers' certificates have been issued and those which have not been claimed, amount to $8,590,000. Liquidation Proceeding. The Federal-American liquidation still is proceeding and there are several important pieces of real estate belonging to the institution which some day are expected to bring substantial funds into the receivership, if sold. Among the principal pieces of real estate are the old American Building 1315 F street, where the American National Bank once was located: the old Federal-American National Bank Building at Fourteenth and G. now rented to the Hamilton National Bank as its headquarters; a branch bank house at Twentieth street and Pennsylvania avenue, another at Twelfth and Newton streets northeast, both of which are rented as Hamilton Bank branches, and several apartment houses. Receiver Hardee also has filed with the controller of the currency his quarterly report on condition of the Chevy Chase Savings Bank, which was bought and reopened by the Riggs National Bank as a branch Total assets of the Chevy Chase Bank are listed at $1,008,810.12, and there has been no stock assessment against shareholders. Total cash collected from assets was $580,363.74 at the end of the year and from that had been paid one 60 per cent dividend of $405,390.50. Depositors of this bank got an additional 5 per cent because the bank went 5 per cent restricted basis before the President's bank holiday. This bank borrowed nothing from the R. F C. Cash in hand was listed at $41,550.51. WOMEN FLEE AS FIRE

16. July 11, 1935 Evening Star Washington, DC

Article from Evening Star, July 11, 1935

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# $1,000,000 in Closed Bank Tied # As Stockholders Oppose Levy # Funds Enough for 10 Per Cent Dividend # Frozen in Federal-American by # Action Against Receiver. Although the closed Federal-American National Bank & Trust Co. now has cash of more than $1,000,000 on hand, it cannot pay another dividend to depositors because of pending litigation in which stockholders are contesting the right of the receiver to collect a 100 per cent assessment. Enough funds are on hand to pay the depositors an additional dividend of 10 per cent, according to the report of quarterly condition of the bank, made public today by Receiver Cary A. Hardee. The bank still owes large sums to the Reconstruction Finance Corp., but has collected such a large proportion from stockholders who did not protest but paid up in full, that the receivership could easily pay another 10 per cent to depositors if it were not for the pending litigation. Cash Totals $1,005,842.47. The report shows the cash on hand totals $1,005,842.47. Most of this was paid in by stockholders, who have paid up to date the proportionately large total of $882,749.46. This is about 45 per cent of the total 100 per cent assessment of $2,000,000 on the capital stock of this bank. Some stockholders protested, however, principally the Davis Trust Co., trustee for the Elkins estate of West Virginia. When the receiver went to court in West Virginia to attempt to collect an assessment of $100,000 the Davis Trust Co. filed here a suit for injunction to prevent the receiver from making the collection. The stock on which the $100,000 assessment is due in the Elkins estate is understood now to be divided among several persons. Deposits in the Federal-American at the time of suspension in March, 1933, were $9,332,245.87, and a 50 per cent dividend was declared in September of the same year. Offsets of $1,059,325.32 have been allowed, and the actual amount paid out to depositors on the 50 per cent dividend amounted on June 30 to $4,148,322.57. Borrowed $2,3425.97 From R. F. C. The bank borrowed from the R. F. C. $2,348,425.57, and has set aside in a collateral account to repay the R. F. C. a total of $992,057.91. Money paid by stockholders on assessment cannot be used to repay the R. F. C. under the law, but must be set aside for dividends to be paid depositors. Under the regulations, the dividend could not be paid, however, to depositors, without permission from the R. F. C., before all the R. F. C. loan was paid off. But it is believed that if stockholders' litigation was out of the way, such permission could be obtained from the R. F. C. and the dividend paid. The condition of the Chevy Chase Savings Bank, whose depositors may get another dividend of between 15 and 20 per cent some time in the indefinite future, also is shown by Receiver Hardee's quarterly report. This bank has remaining assets of $162,103.91, no loan from the R. F. C. and no assessment against stockholders. Depositors have been paid a 60 per cent dividend since the bank closed, amounting now to $404,806.94. The bank was bought by Riggs National, and is now operated there as a Riggs branch.

17. September 27, 1935 Evening Star Washington, DC

Article from Evening Star, September 27, 1935

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Chevy Chase Bank Dividends Idle, Awaiting Claims Depositors of Closed Institution Fail to Cash Checks. Thousands of dollars are lying idle at 1336 New York avenue, the office of the receiver for the Chevy Chase Savings Bank, it was learned yesterday, because depositors of this closed institution are failing to call and get their checks for the additional 20 per cent dividend, recently declared. More than 4,000 depositors already have been notified by postal cards to call at the receiver's office for their checks, but so far only about 1.500 have called. The total amount of the checks not yet claimed was not disclosed, but the total dividend of 20 per cent has made available $134,000. Two more groups of depositors were being notified today and tomorrow by the last two batches of postal cards, bringing the total of all depositors notified up to 4,500. This new 20 per cent dividend in addition to the 60 per cent, brings the total available from this bank to 80 per cent of the original deposits. No dividend checks are available at the former location of the bank, which is now being operated as a branch of Riggs National Bank.

18. October 14, 1935 Evening Star Washington, DC

Article from Evening Star, October 14, 1935

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TO DISCUSS HEAVY INDUSTRIES Program for Durable Goods Recovery to Be Studied at Convention. BY EDWARD C. STONE. Washington members of the Investment Bankers' Association re ceived word today that program built around the heavy industries has been arranged for a forenoon discussion at the association's twenty-fourth annual convention late this month at White Sulphur Springs. President Ralph T Crane announces that two prominent speakers. Charles R Hook. president, American Rolling Mill Co., and Dr. Benjamin H. Anderson, jr. economist Chase National Bank, will speak. Mr Hook's subject will be "The Durable Goods Industry -Bellweather of Prosperity, while the Anderson address will be on The Financial Situation The concluding ceremonies of the convention will include the election of the regular ticket headed by Orrin G. Wood of Boston to serve as president for the ensuing year Mr Crane said that reservations for the convention at this time are double the number received at headquarters on the same relative date last year He estimates an attendance of between 700 and 800 Much interest was also manifested here today in the letter just sent by B. Howell Griswold, jr. of Baltimore, chairman of the association's Conference Committee, to all investment bankers informing them of negotiations carried on with the Securities Exchange Commission regarding overthe-counter trading. An effort is being made to assist the commission in the handling of this difficult problem. 18 More Banks Liquidated. Of the national banks which went into receivership since March, 1927 18 were completely liquidated and the accounts closed during September 1935. Controller of the Currency J F o 'Connor reports T The closing of the accounts in these 18 banks brings total receivership cases disposed of by the controller's office to 144 since October. 1934. Some of the 144 banks involved in the receiverships were restored to solvency by loans of R F C and agreements between the banks and the depositors over adjustment of deposit claims The recent quarterly reports submitted by the receivers of the closed banks in this city showed progress in the collection of former frozen assets The progress. however did not appear sufficient to indicate any further payments to depositors at this time In two or three instances pending court matters are also a factor in delaying early payments to waiting depositors At present, it appears that the next payment here will be made to depositors in the Woodridge-Langdon Bank & Trust Co., the next disbursement being expected to permit this bank to pay out in full or 100 per cent This is likely to come soon It will be recalled that the Chevy Chase Savings Bank now has payment under way Dollar's Buying Power Up The purchasing power of the dollar invested in common stocks during September advanced appreciably above the level existing at the end of August, making another new high for the year, according to the monthly index prepared by Administrative & Research Corp. On the other hand. the bond dollar's buying power declined slightly, as did the purchasing power of the dollar held in cash the As of the end of September index of the purchasing power of the common stock dollar stood at 120.6 compared with 117.9 at the close of August. In comparison, the bond dollar was substantially below the common stock dollar. being 96.2 at the end of September, against 96.3 at the close of the previous month The index of the purchasing power of the dollar held in cash. which is related to the United States Bureau of Labor Wholesale Commodity Index. declined from 95. at the end of August to 95.2 at the end of September Bank President Back at Desk Rolfe E Bolling, president of the Liberty National Bank, who has been away because of illness. is being cordially welcomed back at his desk by officers and patrons alike He has been in the bank on several different days and will soon assume his regular work His recovery has been rapid W W Spaid, senior partner in the brokerage firm of W. B. Hibbs & Co. was back in the financial district today after motor trip to Arizona, to visit relatives John S Walden, jr. controller of the Federal Reserve Bank of Richmond, widely known among Washa ington bankers, has been appointed deputy governor, succeeding Charles A. Peple, resigned The Insurance Women's Club of Washington will hold its first Fall meeting this evening when important changes in the constitution will be discussed and the educational and social program for the coming year be planned. Miss Mabel V. Royce of the Washington Loan & Trust Co., president of the club, will conduct the meeting Capital Transit More Active. Capital Transit stock was more active on the Washington Stock Exchange today starting off with. an 80share block selling at 18. same as the last previous transfer This sale was followed by four 10-share lots and one 5-share lot all selling at the same price The final bid was 17 1/2 with 18 asked Woodward & Lothrop preferred stock was in demand on the exchange today, three 10-share lots changing hands at 1131/2 Two more sales were recorded at 1131/4 Final bid 113. asked 115. The preferred stock pays & 7 per cent annual dividend and is one of the strongest issues on the board. Potomac Electric Power 51/2 per cent preferred stock sold at 113 1/2 same as other recent sales In the bond division, Washington Gas 5