1956. Commercial National Bank (Washington, DC)

View Charter #7446 on SPMC

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 7446
Charter Number: 7446
Start Date: February 27, 1933
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini
Short Digest: 9c8a1804

Response Measures

Full suspension

Other: Bank placed in receivership and liquidated; dividends later paid by receiver.

Description

Commercial National experienced heavy/abnormal withdrawals in late February 1933 (a run), was closed by the Controller of the Currency on Feb 27-28, 1933 and placed in receivership (receiver Robert C. Baldwin). The bank did not resume normal operations but was liquidated under a receiver with dividends paid later (20% Sept 1933, additional 30% Nov 1933). Run cause likely tied to bank-specific distress amid the broader March 1933 banking panic; suspension was by government action (controller).

Events (5)

1. February 27, 1933 Run

Cause: Bank Specific Adverse Info
Cause Details: Abnormal and heavy withdrawals from the Commercial National Bank in late February 1933; depositors withdrew funds fearing closures (local panic/concern about the bank's solvency).
Measures: No specific liquidity-support measures described in articles prior to suspension; depositors later able to obtain statements from receiver.
Newspaper Excerpt: had personal knowledge that there had been abnormal withdrawals from the Commercial National Bank. On the morning of February 27 he became apprehensive that all banks in the District might close and in order to protect the interest of the beneficiaries of the estate withdrew about $9,000 in cash
Source: newspapers

2. February 28, 1933 Receivership

Newspaper Excerpt: Robert C. Baldwin, receiver for the Commercial National Bank, today made public a statement of the condition of the bank at the date of its suspension, February 27, showing total assets ... Baldwin, receiver for the bank, announced that the doors of the bank would be open ... for obtaining statements ... the bank is in the hands of a receiver, plans to present ... a plan for reorganizing the bank, which was adopted ... by a committee of 20 business men. Receiver Baldwin later paid dividends (20% Sept 1933; additional 30% Nov 1933).
Source: newspapers

3. February 28, 1933 Suspension

Cause: Government Action
Cause Details: Closed by order of the Controller of the Currency (official suspension and placing the bank in receivership).
Newspaper Excerpt: On the morning of February 28 ... he went to the bank for work as usual, and found it closed by order of the controller of the currency.
Source: newspapers

4. September 26, 1933 Other

Newspaper Excerpt: The insolvent Commercial National Bank today began the payment of its first dividend under direction of the receiver, Robert C. Baldwin. The dividend checks for 20 per cent of deposits were all ready ... The Commercial National Bank, which closed its doors on February 28, is the largest of the insolvent institutions in this city, and the payment of this first dividend ... releases to the city more than $1,000,000.
Source: newspapers

5. November 13, 1933 Other

Newspaper Excerpt: the disbursement of the second dividend since the bank went into receivership last February Checks now being paid bring the total amount up to 50 per cent so far distributed to depositors.
Source: newspapers

Newspaper Articles (23)

1. March 2, 1933 Los Angeles Evening Post-Record Los Angeles, CA

Article from Los Angeles Evening Post-Record, March 2, 1933

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STATES RELIEVING BANKS Nevada, Arizona, Oklahoma, Among Last to Join BY UNITED PRESS The to restrict withdrawals of deposits spread through the south and west today bringing the total number of states to enact emergency legislation to 16. Beside California, the four most recent states to take action are Arizona, Nevada, Oregon and Oklahoma, Mississippi acted late last night. Louisiana went step further and also declared three-day holiday for all Executives announcing the new holidays generally blamed conditions in other states for forcing the extension of restrictions by placing an unusual strain on banks which sought to continue business EIGHT CLOSED Eight banks in the District of Columbia imposed restrictions on withdrawals as an aftermath of the clos* ing of the Commercial National Bank. In several states already operating under restrictions, business appeared to be moving back toward nor- President-elect Roosevelt, after discussing the bank situation with William H. Woodin, who will be his secretary of the treasury, indicated that he would not issue any state= ment on the subject. Washington dispatches had reported pressure upon him make reassuring declaration before he is inaugurated CUT WITHDRAWALS The states in which banks had been authorized to operate emergency status before last night were Alabama, Kentucky, Michigan, Ohio, Pennsylvania, Arkansas, West Virginia and Maryland, In several others passed measures permitting governors and banking officials restrict with drawals should become necessary, In Indiana, Illinois and some other states, some banks operated under restrictions without formal authorization of the state Efforts continued in Michigan to put into effect the plan of Henry Ford to take over two big banks and reorganize them. One of the banks, was indicated, might reopen soon without Ford's assistance.

2. March 17, 1933 The Washington Times Washington, DC

Article from The Washington Times, March 17, 1933

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EXECUTOR SUES JULU CLOSED BANK A fight was begun in District Supreme Court today by Thomas B. Smith, assistant cashier of the Commercial National Bank, to recover $29,000 from a safe deposit vault in the bank. The money represents a trust fund of which he is executor. Smith, as executor, withdrew the money from his checking account the day before the bank was closed. According to the petition filed today, he withdrew the money because he "became apprehensive that all banks in the District might close." The fund belonged to the estate of Gertrude L. Hoffman, who died in March, 1931. In compliance with provisions of the will, Smith said, he sent a check for $20,233.42 to the Domestic and Foreign Missionary Society of the Protestant Episcopal Church against the money on deposit in the bank. Before the check was honored he withdrew slightly more than $29,000 from the checking account, representing the entire fund he had on deposit as executor, placing it in the safe deposit box. Subsequently he learned that the check had been returned from the missionary society marked "unpaid," Smith said. Robert C. Baldwin, receiver for the bank, refused to give him I ermission to take the money from the box to pay the missiontry legacy, Smith says, on the theory that the banking law governing transfers and withdrawals with a view to giving preference to one depositor over another was violated.

3. March 17, 1933 Evening Star Washington, DC

Article from Evening Star, March 17, 1933

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BANK OFFICER SUES FOR FUNDS PLACED IN SAFETY DEPOSIT (Continued From First Page.) requiring the receiver to show cause why the money should not be turned over to him as executor and to decide whether the bank or the society is entitled to the funds. Justice Daniel W. O'Donoghue set March 28 as the date for the hearing on the petition. The will directed that $20,000 be paid to a hospital at Fort Yukon, Alaska, but the hospital was not incorporated and could. not accept the money. Withdrew Funds. The court ordered it with interest turned over to the society which operates the hospital. After drawing the check Smith transferred the amount it called for from his savings account as executor to his checking account as executor. In his petition, Smith said: "For many years your petitioner has been employed by the bank in charge of the savings department with the title of assistant cashier. He had knowledge of the fact that banks in several States had been closed, and was informed that there had been abnormal withdrawals from certain banks in the District and had personal knowledge that there had been adnormal withdrawals from the Commercial National Bank. On the morning of February 27 he became apprehensive that all banks in the District might close and in order to protect the interest of the beneficiaries of the estate withdrew about $9.000 in cash, the same being the entire balance to his credit as executor in a savings account. and later on the same day withdrew the $20,233.42 from the checking account." Both sums were placed in the safe deposit box which already contained various notes and other property of the estate. Found Bank Closed. Smith told the court he was not a general executive officer of the bank. that he was not a member of the board of directors, that he was not informed as to the bank's policies and that on the day of the withdrawals he did not know the bank was insolvent, nor that its closing was in contemplation. On the morning of February 28. he said. he went to the bank for work as usual, and found it closed by order of the controller of the currency. Some time later. he said. he learned that the check had been returned unpaid to the missionary society. On March 13. he applied to Baldwin for access to the box, but this request was refused. The refusal was on the theory that the transfers violated a section of the United States code relating to transfers made in contemplation of insolvency, or with a view to preferring one creditor to another. Smith says the transfers were made. not with any intention of violating the law. but to carry out an order of the court to safeguard the trust funds. The petition was filed through Attorneys G. B. Craighill and B. D. Boteler.

4. April 12, 1933 The Washington Times Washington, DC

Article from The Washington Times, April 12, 1933

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Boyer Pleads Guilty as Bank Embezzler Depositors COURT RULES 30,000 TO SEE To Receive ROOSEVELT PROBATION Bank Data The receiver of the Commercial National Bank today announced that the doors of the bank would TOSS BALL POSSIBLE be open to commercial depositors tomorrow morning at 9 o'clock Al Crowder Is Slated to Face Federal - American's as Cashier that they may obtain statements of at the suspenAdmitted He Converted Grove in Opening Game sion Februa 27. Statements only are to be of Baseball Season $26,000 to Own Use furnished, the receiver says, and the cancelled checks will be held LINE-UP PROBABLE Charles D. Boyer, former PHILADELPHIA for the present. WASHINGTON Bishop, second base cashier of the Federal-AmeriKuhel, first base Depositors in the savings deFinney, left field Myer, second base partment will be notified later Cochrane, catcher can Bank and Trust Company, Manush, left field Cramer, centerfield Cronin, shortstop when they may have their passJohnson, right field Goslin, right field pleaded guilty in District Subooks balanced and file their Higgins. third base Schulte, centerfield claims. preme Court today to an inWilliams, first base Bluege, third base Cihocki, shortstop Sewell. catcher The future of 13 Washington dictment charging embezzleGrove, pitcher Crowder, pitcher banks, closed since the bank holiment of $26,000 from the day, hangs on the detailed studies By GARRETT WATERS bank. and reports now being made for Clearing skies shortly before HAGOOD OFFERS At the request of the cashier's Walter J. Cummings, executive noon made the opening game assistant to the Secretary of the attorney, Lucien H. Van Doren, between the Washington GriffTreasury. the case was referred by JusThese reports will list the men and Philadelphia A's a tice Daniel W. O'Donoghue to assets of all the institutions and DEFENSE PLAN definite item today, and the the probation office. will classify them according to official announcement from their liquidity. The indictment was laid in 12 was Predicting "collapse of the War that the

5. April 13, 1933 Evening Star Washington, DC

Article from Evening Star, April 13, 1933

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STATEMENTS ISSUED BY COMMERCIAL BANK Depositors Get Some Idea of How Their Accounts Stand. Many of the 20,000 depositors in the Commercial National Bank visited the bank today and obtained statements showing how much money they had on deposit in checking accounts when the institution suspended business on February 27. Shortly after the doors were opened the lobby was filled with former customers anxious to find out just how they stood. While their passbooks told the story in a general way, they did not know just how many of their final checks had been cashed before the bank closed. The receiver, Robert C. Baldwin, announced yesterday that the Commercial National would be open today for the obtaining of this information on commercial accounts. He expects to have similar information ready for savings depositors in a short time. After all these statements have been given out, the next step will be the filing of claims by the depositors. That date has not yet been fixed. Depositors of the Park Savings Bank will meet this evening at the Mount Pleasant branch of the Public Library to hear a report from a special committee on the bank's financial condition. J. W. Thompson of 3155 Nineteenth street, a retired Interior Department employe, is chairman of this committee. The chairman hopes to have a statement from the conservator, Richard Hargreaves, which will give the depositors some idea how they stand.

6. April 15, 1933 Evening Star Washington, DC

Article from Evening Star, April 15, 1933

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COOPER TO PRESENT BANK PLAN TO AWALT Commercial National Reorganization Proposal Approved by Committee of 20. Col. Wade H. Cooper, president of the Commercial National Bank, which is in the hands of a receiver, plans to present to Controller of the Currency Awalt, as soon as possible, a plan for reorganizing the bank, which was adopted yesterday by a committee of 20 business men. The committee was appointed by Col. Cooper as a result of a mass meeting of depositors at the Mayflower Hotel, and developed the plan at a lengthy meeting yesterday afternoon. The action of the committee was said to be unanimous. Col. Cooper said today he would not discuss details of his plan for the present.

7. April 28, 1933 Times Herald Washington, DC

Article from Times Herald, April 28, 1933

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BANK TO FIGHT $30,000 SUIT A denial that T. Blackwell Smith, assistant cashier of the Commercial National Bank, is entitled to $30,031.09 now held by the institution was made yesterday in District Supreme Court by Robert C. Baldwin, the bank's receiver, in answer to a suit for the money instituted by Smith. Smith, as executor of the estate of Gertrude L. Hoffman, to whom the money belonged. withdrew the funds on February 27, the day before the bank closed, and placed it in a safe deposit bank. The receiver, later, refused to turn over the money and Smith filed Baldwin alleged Smith was an officer of the bank, knew the institution's solvency was in peril by large withdrawals, and by his action sought to make himself a preferred creditor in violation of law. Baldwin said Smith had acted similarly in withdrawing $853 on deposit in another case, and the bank also refused to turn the money over to him. D. C. CADET PRAISED Edgar Morris, jr., of 5242 Colorado Ave., cadet colonel in the Clemson College military corps, was commended by Major William Spann, as the result of a review of drills at Clemson, it was announced yesterday.

8. April 28, 1933 The Washington Times Washington, DC

Article from The Washington Times, April 28, 1933

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BANK TO FIGHT $30,000 SUIT A denial that T. Blackwell Smith, assistant cashier of the Commercial National Bank, is entitled to $30,031.09 now held by the institution was made yesterday in District Supreme Court by Robert C. Baldwin, the bank's receiver, in answer to a suit for the money instituted by Smith. Smith, as executor of the estate of Gertrude L. Hoffman, to whom the money belonged, withdrew the funds on February 27, the day before the bank closed, and placed it in a safe deposit bank. The receiver, later, refused to turn over the money and Smith filed suit. Baldwin alleged Smith was an officer of the bank, knew the institution's solvency was in peril by large withdrawals, and by his action sought to make himself a preferred creditor in violation of law. Baldwin said Smith had acted similarly in withdrawing $853 on deposit in another case, and the bank also refused to turn the money over to him.

9. May 9, 1933 Evening Star Washington, DC

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IMMERCIAL BANK SETS $14,754,877, RECEIVER REPORTS Total is $1,630,780 Less Than Amount in Dec. 31, 1932, Statement. NOTICE TO FILE CLAIMS EXPECTED FIRST OF JUNE Liabilities at Present Are Placed at $13,100,583, According to Robert C. Baldwin. Robert C. Baldwin, receiver for the Commercial National Bank, today made public a statement of the condition of the bank at the date of its suspension, February 27, showing total assets of $14,754,877.56. as compared to total assets of $16,385,668.22, shown by the bank itself on December 31, 1932, a decrease of $1,630,780.66. The assets as of February 27 shows a decrease from the June 30, 1932, statement of $2,512,633.68. It is believed that progress has been made in the receivership so that notice may be sent out to depositors about the first of June for them to come to the bank to file claims, but this notice might be later. The statement of the bank's condition at this time showed that its liabilities are $13,100,583.30. as compared with total assets of $14,754,877.56, but it is explained that the value of assets shown are "book values and do not represent actual values." The statement by Mr. Baldwin showing condition of the bank on February 27, when he took it over from Col. Wade H. Cooper. president of the bank, and his associates is as follows: ASSETS. $4,021,009.12 Bills receivable 379,571.77 Cash on hand Assets other than bills receivable and cash on hand 10,354,296.67 Total $14,754,877.56

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

Article from The Washington Times, May 9, 1933

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COMMERCIAL ASSETS DIP $1,630,000 Bank Figures Showing Decline in 2 Months Based on "Book Value" Only Assets of the Commercial National Bank shrank $1,530,782 in the two months intervening between the last call of the Comptroller of the Currency on December 31,1932, and the date on which the bank suspended operations, February 27. This figure is obtained through comparison of "book values" placed by bank officers on the two dates. The assets of the Commercial National totaled $16.385,660 at the end of the year, according to official statement. The assets on February 27, at the close of business that day, totaled $14,754,877.56, according to a statement made today by Robert C. Baldwin, receiver. Book Value Only Baldwin in his statement included a note stating: "The value of assets set forth are book values and do not represent actual values." It is believed that filing of claims against the bank will begin about June 1. Comparison of the two statements shows that "cash on hand" shrank from $1,466,330 the last day of 1932 to $379,571.77 at the close of business February 27, a loss of $1,086,759. This sharp loss, it is conjectured, occurred during the last few days that the bank was open when depositors withdrew large amounts. Baldwin To Sell Baldwin, as receiver, has been authorized by a District Supreme Court order to sell securities of the bank in the liquidation process. Condition of the bank as of December 31, 1932, was shown as follows: ASSETS $4,152,220 Loans and discounts 6,768,730 Bonds and securities 3,998,380 Miscellaneous 1,466,330 Cash items $16,385,660 Total assets LIABILITIES $1,000,000 Paid up capital 629,590 Surplus and undivided profits 11,302,620 Total deposits 3,453,450 Other liabilities $16,385,660 Total liabilities Current Statement Following is a copy of the statement issued today by Robert C. (Continued on Page 2, Col. 1)

11. June 3, 1933 The Washington Times Washington, DC

Article from The Washington Times, June 3, 1933

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BUSINESS MEN FAVOR JOINING NEW BANK Central Association in Favor of U. S. Savings Institution Entering Merger Entrance of the United States Savings Bank into the new Hamilton National Bank is approved by the Central Business Men's Association "to relieve business conditions" in the area served by the institution. Wilbur H. Zepp, vice president and conservator of the bank, told members of the organization yesterday that applications for stock in the new bank are being received and that subscription blanks are being mailed to 3,000 stockholders and depositors. Col. Wade H. Cooper, president and majority stockholder, has called a mass meeting of stockholders for Monday night "to decide the bank's future." He has opposed entrance of the bank into the merger. . Letters urging depositors of the District National Bank, leader in the merger movement, who have not yet done so, to subscribe for stock in the new bank have been mailed. Capt. Chester Wells, chairman of the general subscription committee, while pleased with returns reported at "well over $750,000" toward the $1,250,000 capital and surplus, reminds stockholders and depositors of the seven participating banks that nothing can be done toward incorporation of the new bank until the full amount is obtained. Starting next Monday the Commercial National Bank will be opened from 4:30 to 5:30 p. m. each day except Saturday for the convenience of Government employes in filing their claims against the closed institution, it was announced today by Robert C. Baldwin, receiver for the bank. Only Government workers who are depositors will be allowed to file claims during these late banking hours, Baldwin pointed out, other persons being required to visit the bank during the usual times.

12. June 4, 1933 Evening Star Washington, DC

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of an extra hour in the late afternoon during which the bank will be open for them, it was announced yesterday. Robert C. Baldwin, receiver of the bank. issued a formal statement in which he said that "for the convenience of Government employes only. who are depositors in the Commercial National Bank of Washington, the doors of the bank will be re-opened from 4:30 p.m. until 5:30 p.m., the first five days of

13. July 21, 1933 The Washington Times Washington, DC

Article from The Washington Times, July 21, 1933

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# MRS. M'LEAN # SUED BY BANK Mrs. Evalyn Walsh McLean, estranged wife of Edward B. McLean, former publisher of the Washington Post, as executrix for the estate of Carrie B. Walsh, and the American Employers Insurance Co., have been sued in District Supreme Court for $14,431 by Robert C. Baldwin, receiver of the Commercial National Bank. The suit alleged that Mrs. Walsh on February 8, 1932, gave the bank a promissory note for $14,431 and failed to pay the note. The insurance company was sued as surety for the bond which Mrs. McLean posted when she was appointed executrix of the estate.

14. September 25, 1933 Evening Star Washington, DC

Article from Evening Star, September 25, 1933

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BANK WILL MAKE 20% PAYMENT Commercial Announces Plan by Which Depositors May Receive Quotas. Procedure by which depositors of the insolvent Commercial National Bank can get their initial dividend checks of 20 per cent tomorrow was announced today by Robert C. Baldwin, receiver for the bank. The first dividend was recently authorized by Controller of the Currency J. F. T. O'Connor. The official statement issued by Mr. Baldwin was as follows: "The doors of the bank will be open, beginning Tuesday, September 26, from 9 a.m. to 5 p.m. daily except Saturday, when the hours will be from 9 a.m. to 1 p.m. "All creditors are required to bring the orange-colored receipt issued when claim was proved, as no dividend checks can be issued unless this receipt is surrendered. A receipt prepared by the receiver is to be signed for each check at the windows of the bank. "Receiver's certificates will be delivered together with dividend checks with the first dividend indorsed thereon. "Where accounts are in joint names both parties must sign the receipt for check. "Where accounts are in the hands of executors, administrators, guardians or trustees by court appointment an up-todate certification of appointment must be produced. "All available windows at the bank will be open, yet it is requested, to avoid congestion, that those who can conveniently do so, kindly postpone claiming dividends for several days, since checks can be obtained later at any time suited to their convenience. "Payment will be made by checks of the controller of the currency only, as no cash will be given. "As the clerical facilities of the bank will be taken up in disbursement of dividends, the further filing of proofs of claims will be suspended until October 9, 1933. "The payment of this dividend covers all claims proven through September 12. Creditors filing claims after September 12 will be notified by the receiver by letter when to call for dividend checks."

15. September 26, 1933 Evening Star Washington, DC

Article from Evening Star, September 26, 1933

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COMMERCIAL BANK PAYS 1ST DIVIDEND Checks for 20 Per Cent Are Ready, but Depositors Arrive in Small Numbers. The insolvent Commercial National Bank today began the payment of its first dividend under direction of the receiver, Robert C. Baldwin. The dividend checks for 20 per cent of deposits were all ready, but the depositors came in small numbers early in the morning with no signs of any crowd or long lines forming. The Commercial National Bank, which closed its doors on February 28, it the largest of the insolvent institutions in this city, and the payment of this first dividend, which Receiver Baldwin has made available in an unusually short time, releases to the city more than $1,000,000. Controller of the Currency J. F. T. O'Connor in recently signing the charter for the Hamilton National Bank merger indicated that open banks in the city had requested him to delay the payment of the first dividend of the Commercial National Bank until after the Hamilton was opened. so that all banks could have an equal chance at the released funds. This was done, as the Hamilton opened yesterday and the first dividend checks from the Commercial were payable today. Baldwin is understood to have been commended by the Treasury Department for his efficiency in liquidating the Commercial National Bank and the early time at which he was able to make payable the first dividend. The bank will be open each afternoon until 5 o'clock, Baldwin said, for the convenience of depositors. This will give Government employes a full half hour after closing time to get their checks out of the bank.

16. November 7, 1933 Evening Star Washington, DC

Article from Evening Star, November 7, 1933

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DEFAULT JUDGMENT A default judgment against Ayoob M. Rizik, 1213 F street, for $126,299 in favor of the Commercial National Bank, was ordered in District Supreme Court by Justice F. D. Letts. Robert C. Baldwin, receiver for the bank, brought the suit on five promissory notes. He was represented by the firm of Sheriey cut & Wilson

17. November 11, 1933 The Washington Times Washington, DC

Article from The Washington Times, November 11, 1933

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COMMERCIAL TO PAY AGAIN Robert C. Baldwin, receiver for the Commercial National Bank, Monday will commence the payment of the second dividend of $1,850,000, representing 30 per cent, to depositors. This will make a total of 50 per cent in dividends to be paid out since the bank closed last March. Baldwin warned depositors that there probably will be considerable congestion about the teller's windows during the first few days, and requested all who can conveniently do so to postpone claiming their divideds for the first few days as the checks can be obtained at any time during the month. Claimants must take their receiver's certificates, as no dividend checks will be paid without a certificate or the orange colored receipt. Comptroller's checks will be given for each receipt so surrendered.

18. November 14, 1933 Evening Star Washington, DC

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common Edward C. Baltz. will be composed of James Berry. Marvin A. Curtis and Edward C. Baltz Mr. Baltz, the secretary is one of the most active building and loan men in the city and has held many high offices outside of his own association The stockholders were informed that the company's assets had eased $1,500,000 during the year ending October 20, 1933, and that the concern had made $5.000.000 in new loans during the past 12 months Loans were in such condition that very few foreclosures were necessary, the stockholders were told The organization is the largest of the kind in the city and ranks sixth largest among the members of the United States Building and Loan League. D. C. Brokers See Upward Trend. The majority of stock brokers in this city consider that the latest report on the short interest in the New York stock market indicates a wide belief that the long-term outlook is much more favorable than unfavorable. The total short interest existing as of the opening on October 31 as compiled from information secured by the New York Stock Exchange from its members was 779.228 shares. The last published figure as of September 29 showed total short interest of 875,000 shares. The short position on October 31 last was the smallest on record since the New York Stock Exchange began the practice of publishing short interest figures in the Spring of 1931 The largest short position reported was May 25. 1931, when total short interest was reported at 5.589.700 shares. Capital brokers state that the latest report might not reveal such a light short interest if good signs did not outweigh poor ones. Enough progress has been made in the last eight months, or since the administration's recovery plans were started, to lead to a stronger market when some present uncertainties are out of the way. While most of the gossip in the board rooms relates to the gold-buying effort to raise commodity prices, trade, earnings, profits, industrial expansion and a host of other factors must not be overlooked, brokers assert. Just when the next big move will come, nobody attempts to say Rail Presidents on Committee. The Association of Railway Executives has decided to reorganize its Advisory Committee by increasing membership from 11 to 15 members and establishing the committee on a regional basis, with 6 from the East, 6 from the West and 3 from the South. A. H. Ashton has been re-elected chairman of the Executive Committee and R. V. Fletcher has been reappointed its general counsel. These men will be ex-officio members of the Advisory Committee which will have its own chairman At a meeting in Chicago the other day three additional members of the Executive Committee were elected N P Pitcairn receiver for the Wabash Railway; N Hicks, president of the Virginian Railway, and George Be Bagby, president of the Western Maryland Fiduciaries Section to Meet. The next meeting of the Fiduciaries Section of the District Bankers Association. will take place Friday afternoon at 4 o'clock in the board room of the American Security & Trust Co. Various matiers of special interest to this department of bar king will come up for discussion This year's officers of this section are T Stanley Holland chairman: Sidney F Taliaferro, vice chair man; David Bonet secretary James A Soper and Irving Zirpel, members of the executive council During the first 10 days of November 13 national banks completed reorganization plans and were issued licenses to resume business or were granted charters for new banks. Controller of the Currency O'Connor announces Frozen deposits of the banks which reopened aggregated $15,062,000 with unrestricted deposits totaling $1,022,000. The lobby of the Commercial National Bank was a lively place again today as further payments were made in connection with the disbursement of the second dividend since the bank went into receivership last February Checks now being paid bring the total amount up to 50 per cent SC far distributed to depositors. Bonds Lead Exchange Trading. Bonds were the most active securities on the Washington Stock Exchange during today's session. The market opened with $1,000 Potomac Electric Consolidated 5s coming out at 1031/4 The next bond sale was in Washington Gas 6s. series B, $500 moving at 1021/4 Washington Railway & Electric 4s moved to the extent of $500 at 85 Interest then turned to Capital Traction 5s which strengthened as the session advanced. The first sale of $500 was made at 61, after which $1,000 changed hands at 61% and $1.000 and $500 at 61 1/2 In the stock division the day's only sales were in small lots of Potomac Electric Power 51/2 per cent preferred, all made at 1051 Noted in Financial District. Secretary Woodin has announced his full support of the President's monetary policy, at the same time making the following comment The President has been good enough to consult me on his plans from time to time I am thoroughly in accord and heartily in sympathy with all of his policies, and will back him to the limit. The administral plan for expanding bank capital by issuance of preferred stock, part of which would be bought by the R F C., has been ap proved by the Pittsburgh Clearing House Association, also in Los Angeles. Bankers here say that many other clearing houses all over the country have also approved it since New York and Chicago took such action. It is left to the individual banks to decide whether they wish to expand their capital or leave as it is The Georgia Central Railway has requested authorization from the Interstate Commerce Commission to establish a local passenger coach fare of 2 cents per mile. effective December until May 3. 1934 Wholesale commodity prices advanced sharply during the week ended November 11. according to the index of the National Fertilizer Association. The index advanced 9 points to 69.4 from 68.5; during the preceding week the index declined 4 points. The index nowfis back to where it was September 30.

19. April 1, 1934 Evening Star Washington, DC

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dating assets, it is generally admitted that there will be considerable losses, whereas under the McLeod bill, a slow orderly liquidation extending over a period of 10 years would, it is believed by the best authorities, eliminate any possibility of loss." Expanded to State Banks. The McLeod bill provides for payment to depositors of 100 per cent on their deposits, in the case of certain specified banks. The bill first included national banks, then was expanded to State banks which were members of the Federal Reserve system, and now is proposed to include also banks which borrowed from the R. F. C. Col. Cooper has been the center of prolonged litigation since he started the fight which kept the United States Savings Bank from joining the proposed Hamilton merger. At present, Col. Cooper is under an indictment growing out of his presidency of the now insolvent Commercial National Bank. Another Cooper case involving the United States Savings Bank is now pending before the Court of Appeals. in which he still is endeavoring. after a decision against him in District Supreme Court. to force the Treasury to reopen the bank. This bank is now one of the 15 banks in this city in the hands of a receiver, and is one of those understood to be under consideration for a 100 per cent stock assessment. Meantime, the complex case of the Park Savings Bank. still is pending in District Supreme Court before Justice Jesse C. Adkins. In that case. the Treasury Department's receiver, John F. Moran. has joined with the depositors committee in an attempt to sue directors for the complete losses in the bank, exceeding $2,500,000. According to reports from the reorganization committee of the Industrial Savings Bank, colored institution, the campaign to raise the $65,000 required capitalization for the new Industrial Bank will be completed during the coming week. More than 95 per cent of the stock has now been sold and plans for the reopening are being worked out.

20. July 27, 1934 Evening Star Washington, DC

Article from Evening Star, July 27, 1934

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to secure fully deposits of a State or Government agency unless specifically authorized by law. All Government deposits, amounting to large sums in the Commercial, were secured by collateral and under the court decisions Buldwin is attempting. in some cases, to avoid this security, so as to keep the funds for pro rata distribution to depositors, instead of paying the Government agencies in full. In an official statement, Awalt said: "When the Commercial National Bank of Washington, D. C., suspended it had large deposits of the United States and its agencies secured by collateral. Subsequent to the decisions of the Supreme Court of the United

21. August 14, 1934 Evening Star Washington, DC

Article from Evening Star, August 14, 1934

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RECEIVER OF BANK ACCUSED IN SUIT Commercial Official Faces Charge of Illegally Paying Deposits. Robert C. Baldwin, receiver for the Commercial National Bank, was accused of paying in full deposits of two quasi-governmental agencies and a private corporation while the majority of the bank's depositors were receiving only 50 cents on the dollar, in a suit filed in District Supreme Court today by Thomas E. Rhodes, Southern Building. Rhodes charged this action by the receiver was "unlawful, illegal and unconscionable and to the prejudice of the rights and in fraud of the interests of this plaintiff as well as all other creditors of the bank." Pledges Held Illegal. The deposits paid in full, it was alleged, had been illegally secured by officials of the bank before the receiver took charge. The suit said the former officials induced the three agencies to open the accounts by pledging assets of the bank to guarantee their payment in full. Rhodes declared this was in violation of the banking laws and a fraud on the other depositors. The alleged preferential payments, it is alleged, were made to the alien property custodian, the United States Shipping Board's Merchant Marine Fleet Corp. and the Philippine-Manila Railway Co. The plaintiff said similar action was taken in the case of other depositors, whose names he does not know. Security Totaled $1,683,377. Rhodes said he does not know the amounts of the several deposits, but that the security given the Merchant Fleet Corporation aggregated $1,683,377.08. Through Attorneys Robert H. McNeill and Philip H. Marcum, he asked that a receiver be appointed to take charge of the moneys so paid out and that Baldwin be required to make full disclosure of the identities of the creditors receiving full payment and the amounts paid to them.

22. October 11, 1934 Evening Star Washington, DC

Article from Evening Star, October 11, 1934

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COMMERCIAL BANK INCOME $328,685.51 Quarterly Figures Released by Receiver Shows Reduction of R. F. C. Loan. Current income of the insolvent Commercial National Bank, including interest, premiums and rents, amounted to $328,685.51 at the end of the quarter, September 30. The cost of receivership was placed at $114,354. These figures were disclosed today in the quarterly report by Receiver Robert C. Baldwin, which shows the loan from the Reconstruction Finance Corporation to the bank, amounting to $3,327,400, had been reduced by $2,059,400. Out of a total of assets to be accounted for amounting to $15,902,919.73, including a stock assessment of $1,000,000, there has been collected a total of $11,910,265.67, including the R. F. C. loan. Collections on the stock assessment were $218,338.43, while total cash from assets and stock assessment was $8,228,288.84. Offsets were allowed totaling $556,758.96, and losses have been charged off including $743,851.52 on assets, and $2,500 on stock assessment. Total remaining uncollected assets, including the stock assessment, stand at $6,371,520.41. Secured and preferred liabilities paid in cash were $6,834,206.60. Unsecured liabilities for which receivers' certificates have been issued total $5,572,833.41, and dividends of 50 per cent have been paid to unsecured creditors amounting to $2,786,854.56.

23. December 1, 1934 The Washington Times Washington, DC

Article from The Washington Times, December 1, 1934

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BANK DEFERS PAYMENT OF DIVIDEND Federal-American Holds Up Funds Till Spring; Commercial National May Pay Depositors in the defunct Federal-American National Bank and Trust Company will receive another dividend sometime in the spring, it was disclosed at the Treasury Department today. This definitely blasts hopes of depositors who had been anticipating a payment before the Christmas holidays in view of the collections recently made by the receiver of the bank as a result of assessments levied against the stockholders, Levy Insufficient These assessments, aggregating about $700,000, will not prove sufficient to pay a substantial dividend at this time, and, furthermore, it was explained by Treasury officials, it would require more than a month to make a disbursement of this amount. Neither will there be another dividend at the District National Bank for some time, Treasury officials said. This bank, likewise, has a large sum of money "on tap" for the depositors, but the payments will not be made before spring, it was predicted. Commercial May Pay Treasury officiais indicated today there will be an interesting announcement soon regarding the status of the Commercial National Bank. The Commercial National Bank refunded to many of the Government agencies with savings accounts there the full amount of the deposits, while the ordinary depositors received only 50 per cent of their funds. It was hinted a readjustment will be effected whereby some of the funds paid to the Government agencies will be returned to the bank and then paid to the depositors.