1961. Continental Trust Company (Washington, DC)

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: February 28, 1933
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini
Short Digest: 9af471f5

Response Measures

None

Description

Articles indicate Continental Trust Co. was merged/taken over by Commercial National, was insolvent, placed in receivership and liquidation under Receiver John F. Moran. No article describes a depositor run or any reopening; the institution remained closed and in receivership with legal actions and stock assessments following. Suspension date is not explicitly stated in the OCR text, but contemporaneous reporting places the company closed in the early 1930s; I use Feb 28, 1933 as the likely suspension/date-of-valuation reference (see events) — year inferred from context of 1933 bank closures and nearby articles. Significant OCR errors in Article 2 made some figures garbled; corrected bank name and receiver references are supported by other articles.

Events (4)

1. February 28, 1933 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Continental was insolvent, merged with Commercial National Bank, and paid dividends while lacking unpledged assets; receivership and liquidation followed.
Newspaper Excerpt: The Continental Trust Company, which on February 28, with assets valued at $2,298,530.88, has since acquired $52,772.88 in additional assets.
Source: newspapers

2. September 15, 1934 Receivership

Newspaper Excerpt: Liquidation Work To Shift Monday This is the last day on which liquidation matters of the North Capitol Savings Bank and the Continental Trust Company, will be handled from the two institutions. Receiver John F. Moran announced yesterday records of the two banks have been moved to the Park Savings Bank ... and beginning Monday affairs will be transacted there.
Source: newspapers

3. September 30, 1934 Other

Newspaper Excerpt: John F. Moran, receiver for the Continental Trust Co., yesterday filed suit in District Supreme Court to recover $105,000 from 125 shareholders and directors who allegedly received dividends after the trust company was insolvent.
Source: newspapers

4. May 29, 1935 Other

Newspaper Excerpt: ASSESSMENT UPON SHAREHOLDERS... In the matter of Continental Trust Company... a corporation doing business in the District of Columbia, now in receivership... I do hereby make an assessment and requisition upon the shareholders of the said Continental Trust Company for one Million ($1,000,000.00) dollars. ... John F. Moran, the Receiver heretofore appointed, to take all necessary proceedings... J. F. T. O'CONNOR. Comptroller of the Currency.
Source: newspapers

Newspaper Articles (11)

1. February 13, 1934 Evening Star Washington, DC

Article from Evening Star, February 13, 1934

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

2. 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

3. September 15, 1934 The Washington Times Washington, DC

Article from The Washington Times, September 15, 1934

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Liquidation Work To Shift Monday This is the last day on which liquidation matters of the North Capitol Savings Bank and the Continental Trust Company, will he handled from the two institutions. Receiver John F. Moran announced yesterday records of the two banks have been moved to the Park Savings Bank at Fourteenth and Kenyon Streets, and beginning Monday affairs will be transacted there.

4. September 30, 1934 Evening Star Washington, DC

Article from Evening Star, September 30, 1934

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CONTINENTAL TRUST CO. DIVIDENDS ASKED REPAID Receiver Files Suit in D. C. Supreme Court to Recover $105,000 From 126 Persons. John F. Moran, receiver for the Continental Trust Co., yesterday filed suit in District Supreme Court to recover $105,000 from 125 shareholders and directors who allegedly received dividends after the trust company was insolvent. The suit, filed through Attorney Brice Clagett, asserted they were paid after the trust company had been merged with the Commercial National Bank. An accounting and return of the payments was asked. Among defendants is Wade H. Cooper, former president of the trust company.

5. June 1, 1935 Evening Star Washington, DC

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SPECIAL NOTICES. DAILY TRIPS MOVING LOADS AND PART loads to and from Balto.. Phila. and New York. Frequent trips to other Eastern cities. Dependable Service Since 1896. THE DAVIDSON TRANSFER & STORAGE CO. phone Decatur 2500. I WILL NOT BE RESPONSIBLE FOR debts incurred by any person other than myself GEORGE M. MAYNARD, 2844 Wisconsin ave. 3* WANTED-RETURN LOADS FROM ASHEville. Atlantic City, Buffalo. Charleston. Cleveland. Detroit: also local moving SMITH'S TRANSFER & STORAGE CO., 1313 You st. n.w. Phone North 3343. ASSESSMENT UPON SHAREHOLDERS. TREASURY DEPARTMENT OFFICE OF the Comptroller of the Currency. Washington. D. C., May 29. 1935.-In the matter of Continental Trust Company. Washington. District of Columbia-TO ALL WHOM IT MAY CONCERN: WHEREAS. it appears to my satisfaction that in order to pay the debts of the "Continental Trust Company.' a corporation doing business in the District of Columbia. now in receivership. it is necessary to enforce the individual liability of the stockholders therefor to the extent hereinafter mentioned. as prescribed by law. NOW. THEREFORE. by virtue of the authority vested in me by law. I do hereby make an assessment and requisition upon the shareholders of the said "Continental Trust Company" for one Million ($1.000.000.00) dollars. to be paid by them on or before the Sixth Day of July. 1935. and I hereby make demand upon each and every one of them for the par value of each and evely share of the capital stock of said corporation held or owned by them. respectively at the time of its failure; and I hereby direct John F. Moran. the Receiver heretofore appointed. to take all necessary proceedings. by suit or otherwise. to enforce to that extent the said Individual liability of the said shareholders. IN WITNESS WHEREOF I have hereto set my hand and caused my seal of office to be affixed to these presents. at the City of Washington. in the District of Columbia, this Twenty-ninth day of May. A.D. 1935. (Seal.) J. F. T. O'CONNOR. Comptroller of the Currency.

6. June 22, 1935 Evening Star Washington, DC

Article from Evening Star, June 22, 1935

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SPECIAL NOTICES. I WILL NOT BE RESPONSIBLE FOR debts contracted by any one other than myself. JOHN E. FRANCIS. Herald Harbor. Md. I WILL NOT BE RESPONSIBLE FOR ANY bills. from this date. contracted by persons other than myself. JOSEPH A. PESSAGNO. Jr. 27* I WILL NOT BE RESPONSIBLE FOR ANY debts contracted by any one other than myself. for Temple Wrecking Co. or myself. MURRAY T. SHIPP, 56 F st. S.W. THE NEXT EXAMINATION IN OPTOMetry will be held on August 15. 16. and 17. 1935, in the office of the secretary. All persons desiring to take this examination will file application with secretary on or before July 10. 1935. M. LUTHER DICUS. Secretary. 1319 F St. N.W.. Wash., D. C. ASSESSMENT UPON SHAREHOLDERS. TREASURY DEPARTMENT. OFFICE OF the Comptroller of the Currency. Washington, D. C., May 29. 1935. the matter of Continental Trust Company Washington, District of Columbia-TO ALL WHOM IT MAY CONCERN: WHEREAS. it appears to my satisfaction that in order to pay the debts of the "Continental Trust Company. a corporation doing business in the District of Columbia, now in receivership. it is necessary to enforce the individual liability of the stockholders therefor to the extent hereinafter mentioned. as prescribed by law. NOW. THEREFORE. by virtue of the authority vested in me by law. I do hereby make an assessment and requisition upon the shareholders of the said "Continental Trust Company" for one Million ($1,000,000.00) dollars. to be paid by them on or before the Sixth Day of July. 1935. and I hereby make demand upon each and every one of them for the par value of each and every share of the capital stock of said corporation held or owned by them. respectively. at the time of its failure; and I hereby direct John F. Moran. the Receiver heretofore appointed. to take all necessary proceedings. by suit or otherwise. to enforce to that extent the said individual liability of the said shareholders. IN WITNESS WHEREOF I have hereto set my hand and caused my seal of office to be affixed to these presents. at the City of Washington, in the District of Columbia. this Twenty-ninth day of May, A.D. 1935. J. F. T. O'CONNOR. (Seal.) Comptroller of the Currency. WANTED-RETURN LOADS FROM CEDAR Rapids. Denver, Detroit. Charleston. Albany and New York City: also local moving. SMITH'S TRANSFER & STORAGE CO., 1313 You st. n.w. Phone North 3343. OWNER-DRIVER. 1½-TON TRUCK, HAUL anything. anywhere. $1 hours. Phone 22* Columbia 3724. DAILY TRIPS MOVING LOADS AND PART loads to and from Balto.. Phila. and New York. Frequent trips to other Eastern cities. "Dependable Service Since 1896.' THE DAVIDSON TRANSFER & STORAGE CO., phone Decatur 2500. A DEAL FUNERAL AT $75 Provides same service as one costins $500 Don't waste "insurance money." Call DEAL. with 25 years' experience. Lincoln 8200 is one of the largest CHAMBERS undertakers in the world. Complete funerals as low as $75 up. Six chapels. twelve parlors, seventeen cars. hearses and ambulances, twenty-five undertakers and assistants.

7. July 16, 1935 The Washington Times Washington, DC

Article from The Washington Times, July 16, 1935

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# PARK SAVINGS ASSETS PUT AT $2,953,402.29 With the book value of assets at the date of suspension, March 6, 1933, placed at $2,556,383.68, additional assets acquired since then by Park Savings have raised the total to $2,953,402.29, according to a report by John F. Moran, receiver. Total cash collections on assets of the bank amount to $1,299,787.94. The Continental Trust Company, which on February 28, with assets valued at $2,298,530.88, has since acquired $52,772.88 in additional assets. Cash collected on the total amounts to $183,046.48. Since its suspension date, July 14, 1932, North Capitol Savings has added $112,697.47 to its assets, which were valued at $1,231,227.58 in the receiver's first report. Cash collections from assets and stock assessment total $366,231.61. The Departmental Bank had assets of $1,118,867.65 on the date of suspension, July 14, 1932, to which it has since added $57,964.14. Stock assessment of 100 per cent amounts to $106,060.00. Cash collections total $822,784.55.

8. October 27, 1935 Evening Star Washington, DC

Article from Evening Star, October 27, 1935

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TRIAL OF COOPER TO RE DD RESUMED Frederick W. Pimper Will Continue Testimony Tomorrow Morning. The trial of Wade H. Cooper. former president of three local banks, will be resumed tomorrow at 10 a.m. before a jury in District Supreme Court. Cooper is charged with misapplication of funds of the defunct Commercial National Bank, Frederick W. Pimper, one-time head note teller of the Commercial Bank, will continue testimony begun Friday, when the trial was adjourned by Justice Daniel W. O'Donoghue because of conflicting court business. Pimper has identified numerous ledgers, account slips and other papers in connection with loans made by the Commercial Bank to the old Continental Trust Co. in order to permit the latter to meet dividend payments. The Government claims these dividends were illegal because the Continental was without unpledged assets. The Continental had turned over its deposit liabilities of more than $2,800,000 to Commercial in an affiliation deal under which Col. Cooper. then president of the Continental, became head of the joint institution. Receivers for the Commercial and Continental banks are among witnesses waiting to be called by Irving Goldstein, assistant United States attorney in charge of the prosecution. The Government may complete its case before the middle of the week and the case may go to the jury toward the end of the week. The defense is being led by William E. Leahy.

9. February 28, 1936 Evening Star Washington, DC

Article from Evening Star, February 28, 1936

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CONTINENTAL B BANK DIRECTORS SUED Receiver Moran Seeks $1,093,541, Plus Interest, to Make Losses Good. Suit was filed in District Supreme Court today to hold the directors of the defunct Continental Trust Co. personally liable for a loss of more than $1,000,000, said to have been occasioned by their negligence. The receiver, John F. Moran, who brought the action, informed the court that the company's assets were insufficient to pay creditors, making it essential to recover all losses sustained. $1,093,541 Sought. The total Moran sought to obtain from the directors was $1,093,541.75, plus interest. This was made up of three items involving purchases of Continental stock and stock in the closed Commercial National Bank. The latter institution took over the assets and liabilities of the trust company several years before the widespread bank closings in 1933. Stating that the stock of both the Commercial and the Continental now are worthless, Moran contended, through his attorneys, Brice Clagett and Charles E. Wainwright, that the directors should have known that the securities were not good investments. Banking Law Violation. He argued further that purchase of Commercial stock by the Continental was in violation of the banking laws and beyond the authority of the board. On December 14, 1929, the court was told, the directors authorized the purchase of between 3,000 and 4,500 shares of capital stock of the Commercial at a price not to exceed $250 per share. The following January, it was said, the officers and Executive Committee (See BANK, Page 3.)

10. January 23, 1937 The Washington Times Washington, DC

Article from The Washington Times, January 23, 1937

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COOPER SUED FOR $178 000 Suit for $178,300 against Col. Wade H. Cooper, former head of three local banking institutions, now defunct, was instituted today in the United States District Court by John F. Moran, receiver for the Continental Trust Company, one of the closed Cooper interests. Moran alleges the amount he asks represents the assessment on Continental shares, which he charges Colonel Cooper transferred when he realized his bank was financially shaky. The court is asked to declare Cooper the beneficial owner of the transferred shares, which, the suit declares, numbers 1,783. The stock is alleged to have been transferred to the Hanover Investors, Inc., a Delaware corporation controlled by Colonel Cooper. The Comptroller of the Currency, at the time of the Continental's crash, ordered a 100 per cent stock assessment, according to Moran, who asks that the shares now held by the Delaware corporation be brought under the terms of that order.

11. March 18, 1937 Evening Star Washington, DC

Article from Evening Star, March 18, 1937

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CONTINENTAL DEBT IS FIXED AT $885,786 COOC Payment to Commercial Decided by Court-Both Institutions to Appeal. A decree entered today in the District Court suit to determine the amount owed to the Commercial National Bank by the Continental Trust Co., which were merged in 1930, today fixed the sum at $885,786.40. For several years the tangled affairs of the two closed institutions have been before the court. The decision today, made by Justice Daniel W. O'Dongghue, will be taken to the Court of Appeals by both parties, each objecting to particular items in the decree. On January 18, 1930, a contract was executed between the two institutions by which the Commercial assumed the Continental's $2,800,000 depositor liabilities and took over its assets. Both institutions closed during the bank collapse and now are in the hands of receivers. O'Donoghue Lists Sums. Justice O'Donoghue held that $367.036.40 of the $2,800,000 still remains to be paid out of the Continental assets. He listed this sum as a debt due the Commercial and authorized the Commercial's receiver to liquidate the (See BANK, Page A-2.)