1977. Federal American National Bank (Washington, DC)

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 10316
Charter Number: 10316
Start Date: March 6, 1933
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini
Short Digest: 894d8fe7

Response Measures

None

Description

The Federal American National Bank was closed during the March 1933 bank holiday (government action) and placed in conservatorship; later (Nov 1933) the Comptroller appointed receivers and the bank entered liquidation. Newspaper articles describe receivers taking assets, stockholder assessments, and dividend payments from liquidation. There is no explicit description of a depositor run prior to suspension in the provided texts, so this is classified as a suspension that resulted in permanent closure/receivership.

Events (5)

1. March 6, 1933 Suspension

Cause: Government Action
Cause Details: Closed as part of the national bank holiday proclaimed by the President in March 1933; bank remained in conservatorship after the holiday.
Newspaper Excerpt: At 1 a.m. March 6 President Roosevelt declared the bank holiday.
Source: newspapers

2. November 1, 1933 Receivership

Newspaper Excerpt: Comptroller ... designated ... as receivers of the assets of the eight closed District banks now operated by conservators. The banks involved are ... Federal American National ... . Under present plans ... Receiver Hardee will be in charge of liquidation of the assets of the Federal American ... .
Source: newspapers

3. November 15, 1933 Other

Newspaper Excerpt: Receiver gets bank assets ... Cary T. Hardee ... has completed physical transfer of the assets ... and has receipted for them to John Poole, former president of the bank, who has been its conservator since the holiday last March.
Source: newspapers

4. July 7, 1934 Other

Newspaper Excerpt: 100% Levy Made on Stockholders ... Federal-American National $2,000,000 642 ... assessments aggregating $3,340,000 have been levied against 1,343 stockholders in five closed Washington banks ... Federal-American National included.
Source: newspapers

5. July 17, 1934 Other

Newspaper Excerpt: Receiver Cary A. Hardee reported for the Federal American National Bank $9,000,000 of the original $17,400,000 of the bank assets remain to be collected ... It is expected to be a long time before depositors get any more than the 50 per cent, or $4,000,000 paid them when the Hamilton National Bank opened.
Source: newspapers

Newspaper Articles (11)

1. July 26, 1933 The Washington Times Washington, DC

Article from The Washington Times, July 26, 1933

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2 INSTITUTIONS NAMED IN ACTION Federal-American and Bank of Brightwood Follow Advice Of Comptroller The District Commissioners today instructed William W. Bride, Corporation Counsel, to institute proceedings in the District Supreme Court asking a writ of mandamus be issued compelling the national banks in Washington now in the hands of conservators to file returns on their gross earnings during 1932. This action was taken despite letters from J. F. T. O'Connor, Comptroller of the Currency, regarding the Federal - American National Bank and the Bank of Brightwood, the latter organized under the laws of Arizona. Mr. O'Connor wrote that he had instructed the conservator of the Federal-American not to file a return with the Assessor of Taxes for the District and had taken a similar course with the Brightwood institution. The Federal-American conservator and the receiver for the Brightwood Bank were told to certify to the Tax Assessor that they had no funds in hand for payment of taxes. The Comptroller of Currency cited several cases in the letters to Mr. Bride in which it was held any money in closed banks belonged to depositors and creditors, even though the bank had been solvent during the time the tax returns cover.

2. November 1, 1933 The Washington Times Washington, DC

Article from The Washington Times, November 1, 1933

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RECEIVERS GET ASSETS OF 8 SHUT BANKS Comptroller Shifts Task of Setting Up Affairs From Local Conservators Cary A. Hardee, Florida exgovernor and banker, and Norman R. Hamilton, Portsmouth (Va.) published and former Customs Collector, were designated by the Comptroller of the Currency today as receivers of the assets of the eight closed District banks now operated by conservators. The banks involved are Chevy Chase Savings, Federal American National, District National, Northeast Savings, Seventh Street Savings, Washington Savings, Woodridge-Langdon Savings, and Commercial and Potomac Savings. Under present plans of the Comptroller, Receiver Hardee will be in charge of liquidation of the assets of the Federal American and Chevy Chase Savings banks, while Receiver Hamilton will take over the remainder. Hardee Takes Charge Mr. Hardee entered upon his duties today, visiting the office of John Poole, conservator of the Federal American National Bank. Hamilton is not expected to arrive in the city until November 8. The receivers are expected to take over the assets of one bank at a time. According to this plan, the dual receivership will not be in full swing for several weeks as it will take a week or more for the checking-in process in the case of each bank. Approximately 65 per cent of the assets of the Chevy Chase Savings Bank were taken over by the Riggs National Bank in a "Spokane" purchase several months ago while 50 per cent of the assets of the other seven banks were taken over by the Hamilton National Bank. Move for Economy Replacement of the eight conservators by two receivers, Comptroller J. F. T. O'Connor explained, was in the interest of economy. Six salaries and high bond premiums will be eliminated in the new system. Assets of the Mt. Vernon Bank While it has been the uniform policy of the Treasury to make a survey of the condition of a bank as soon as it is placed in receivership and prepare a schedule of stock assessments commensurate with the uncollectible amount of assets, there was no indication of the Treas ury's policy in the case of the eight banks involved in the present receiverships. Four conservators replaced under the new system have been acting without pay since the Hamilton Bank opening as they had accepted positions with the new bank. They are Joshua Evans, jr., District National; George F. Hoover, Northeast Savings Bank; R. A. Sisson, Washington Savings Bank, and E. L. Norris, Woodridge-Langdon. The others are John Poole, Federal-American; George W. Offutt, Potomac Savings, and John D. Howard, Seventh Street Savings.

3. November 1, 1933 The Free Lance-Star Fredericksburg, VA

Article from The Free Lance-Star, November 1, 1933

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HAMILTON NAMED Portsmouth Publisher to Aid in Liquidation of Washington Banks. WASHINGTON Nov. Comptroller the Currency, announced today that Cary Hardee, former Florida, Norman R. Hamilton, Virginia publisher, had been appointed liquidate District Columbia banks now operated The Comptroller explained the constructive, designed hasten payment depositors from assets remaining after other District banks took over part of business of the banks to liquidated. The eight local institutions are the Federal American National Bank, the Chevy Chase Savings Bank, District National Bank. the Northeast Savings Bank, the Seventh Street Savings Bank, the Washington Bank, the Savings Bank and the tomac Savings Bank. Harder Governor of Florida from 1921 1925. Hamilton, publisher of the Portsmouth, Star, born reared in Virginia. For several years he has been director of bank Norfolk, Va., and now director of the Mutual Building Association there. From 1913 1922 collector of customs News, representing both the Treasury and State enforcing laws Virginia waters. In this position was virtually the head of business with annual income approximately $5,000,000. Under tentative plans, the FedAmerican Chevy Savings Banks be Chase charge Hardee; while Hamilton will take charge the District National, Northeast Savings, enth Street Savings, Washington Savings, and the Potomac Savings Banks. assumed duties Hardee Hamilton was today, until Nopected Washington vember O'Connor said the Comptroller two receivers eight was to minimize stead pense.

4. November 15, 1933 The Washington Times Washington, DC

Article from The Washington Times, November 15, 1933

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RECEIVER GETS BANK ASSETS Cary T. Hardee, who was named receiver for the remaining assets of the Federal-American National Bank two weeks ago, has completed physical transfer of the assets, it was learned today, and has receipted for them to John Poole, former president of the bank, who has been its conservator since the holiday last March. Hardee declined to state the condition of the assets nor what the policy of the Treasury would be in the matter of stock assessments. It is believed, however, that substantial assessments eventually will be levied before dividends will be forthcoming. Hardee is expected to be named receiver also for the Chevy Chase Savings Bank. Progress in the negotiations for reopening the Industrial Savings Bank, a colored institution, was reported today by Deputy Comptroller Gibbs Lyons.

5. November 16, 1933 The Washington Times Washington, DC

Article from The Washington Times, November 16, 1933

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RECEIVERS GET BANK ASSETS Liquidation of the assets of closed Washington banks proceeded a step further today when two recently appointed receivers began taking over assets of the Chevy Chase and Northeast Savings banks. Cary A. Hardee, former governor of Florida, and Norman Hamilton, Virginia publisher, were named two weeks ago as receivers for the eight Washington banks in conservatorship. Earlier in the week Governor Hardee completed his task of taking over assets of the FederalAmerican National Bank and yesterday Hamilton receipted for the assets of the District National Bank. Today Hardee was directed to take over the Chevy Chase Savings Bank and Hamilton was instructed to take over the Northeast Savings Bank. The physical transfer of the assets will require about one week.

6. 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

7. July 7, 1934 The Washington Daily News Washington, DC

Article from The Washington Daily News, July 7, 1934

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100% Levy Made on Stockholders in 5 D. C. Banks Huge Sum Would Be Available for Depositors and Other Creditors By ROBERT M. BUCK The blow, expected for a year, has fallen on the stockholders of five of Washington's closed banks. J. F. T. O'Connor, Comptroller of the Currency, today announced that he had levied 100 per cent assessments against shareholders of the following banks: The receivers of the five banks, the best assets of all of which were taken over by the Hamilton National Bank, which was organized for that purpose, have been instructed to demand of each stockholder $1 in cash for every $1 he has invested in stock. INTEREST AFTER AUG. 13 These assessments are payable Aug. 13, but may be paid in four equal instalments monthly beginning on that date. They bear 6 per cent interest after Aug. 13. The collections, when made, will be added to the other assets of the No. of stockBank Assessment holders Federal-American National $2,000,000 642 District National 1,000,000 325 140,000 68 Potomac Savings Northeast Savings 100,000 185 Seventh Street 100,000 123 Savings Totals $3,340,000 1343

8. July 7, 1934 The Washington Times Washington, DC

Article from The Washington Times, July 7, 1934

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DEPOSITORS MUST TAKE LOSSES Five Institutions in Hamilton Merger Can't Make Full Payoff, Says Receiver Assessments aggregating $3,340,000 have been levied against 1,343 stockholders in five closed Washington banks, Comptroller of the Currency J. F. T. O'Connor announced today. The assessments, which are 100 per cent, must be paid between now and November 13, a 25 cent down payment being 13, Mr. made per August O'Connor said. Other installments on the assessments can be made September 13 and October 13. The five banks affected by the the amount comptroller's of ruling assessment and Federal- the for are: The National be by 642 American each 000, to bank paid Bank, stockhold- $2,000,District 325 ers; $1,000,000, the by National stockholders; Bank, the Potomac Savings Bank, $140,68 Northeast 000, by Savings stockholders; Bank, $100,000, the stockholders; the Seventh Bank, by Street 185 Savings $100,000, by 123 stockholders. Depositors to Lose exception of the Federal-American With the National Bank, are in receiverthe ship these under institutions jurisdiction is also of NorR. Hamilton, who rethe defunct Bank. Mr. man ceiver ton Savings for Hamilton Washing- of today that all hope to full announced payment thousands banks which of depositors in these five merged with the Hamilton National Bank have been definitely blasted. Although they already have recent of when the five ceived posits 50 per defunct their by the de- inwere taken over Bank, the a 100 per stitutions had Hamilton anticipated depositors cent payment on the remaining part of their savings. Two Others in Doubt Besides these five banks, two taken over Hamilton others the present were to National create are the Federal National American Bank. These Bank the Wood- and Company and Bank. It ridge-Langdon Trust Savings Commercial could not and be just banks could pay on ascertained these two today how off much the amounts due depositors. venMr. Hamilton would much not to just how the for reoff. five ture ceiver banks could say pay which Shrinkage he is market value assets the banks was Mr. of held the by Hamilton the of for reason not off 100 per cent given paying by to savings. depositors on their remaining however, real He extraordinary added, estate that boom "an in Washington" might result cent in a 100 per pay-off, event but pointed out that such an is "extremely remote." May Pay By December There were indications payment today to that at least some in these made before would depositors be five December. officially banks this was not it seemed announced, Although to be a conclusion from a stateMr. for loans foregone ment applications made by Hamilton from that the Reconstruction Finance Corpora(Continued on Page 2, Col. 1)

9. July 9, 1934 The Washington Times Washington, DC

Article from The Washington Times, July 9, 1934

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D. C. BANKS TIE UP MILLIONS (Continued from Page 1.) course, meant less money for the banks. The largest amount of money still due Washington depositors is held by the defunct Commercial National Bank, which closed its doors with deposits aggregating $11,058,615. Since its failure it has paid off half this amount. Local financial speculation centered today on just how much money would pour into the coffers of five of the banks in receivership here as a result of a 100 per cent levy on 1,342 stockholders for $3,340,000. Assessments were levied against stockholders in the FederalAmerican National Bank, the District National Bank, the Potomac Savings Bank, the Northeast Savings Bank, and the Seventh Street Savings Bank. May Collect One-Third It developed over the week-end that scores of stockholders in these banks are not in a position to meet the demands of the Comptroller of the Currency. Bankers, baring their estimates on past experience, believe that only one-third of this debt will be paid. This fact, plus an appreciable shrinkage in assets held by the banks, makes eventual loss to thousands of depositors a certainty. There was considerable discussion today regarding the possibility of assessments being levied against stockholders in the Washington Savings Bank and the Woodridge-Langdon Savings and Commercial Bank, two which joined with the five that have been assessed in forming the present Hamilton National Bank. Whether the Comptroller of the Currency will levy assessments against stockholders in these banks could not be ascertained.

10. July 17, 1934 The Washington Daily News Washington, DC

Article from The Washington Daily News, July 17, 1934

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Dividend Being Paid on Stagger Plan; Other Banks Report Receivers in Closed Institutions Tell Comptroller Progress on Their Liquidation By ROBERT M. BUCK Depositors of the United States Saving Bank, 14th and U streets nw, closed since March, 1933, today began actual collection of some of their money. Receiver Carter B. Keene placetd $1,000,000, or 65 per cent of creditor claims, out on dividend begininng this morning. It had been announced that this would happen this week, but Keene expected to begin payment tomorrow. LAST night, however, he found himself able to mail part of the notices. The dividend is being paid by a stagger system, some creditors being notified to come each day for several days. T day, also, receivers of failed ban IS began to make quarterly reports to the comptroller of the cur- FEDERAL AMERICAN REPORT Receiver Cary A. Hardee reported for the Federal American National Bank $9,000,000 of the original $17,400,000 of the bank assets remain to be collected. Out of the $9,000,000 (face value), $2,000,000 RFC loans must be repaid before the depositors and other creditors may begin to realize on the $4,500,000 still owing them. Thus there are $7,000,000 to pay out of $9,000,000 of assets. It looks like a hopeful situation, but the $9,000,000 is book, not real, value. It is expected to be a long time before depositors get any more than the 50 per cent, or $4,000,000 paid them when the Hamilton National Bank opened. Cost of the receivership for the seven months since Nov. 1, when Hardee was appointed, has been $56,000. For the nine months of conservatorship before that cost $295,000. COMERCIAL BANK Receiver Robert Baldwin of the Commercial National Bank, reported to the comptroller that he has collected $8,300,000 of the bank's original $14,750,000 of assets, leaving $6,444,000 to be realized on. This again is face and not real value. Against it stand RFC loans of $1,500,000, deposits of $2,750,000 and other liabilities making a total of $4,500,000. Depositors have received 50 per cent or $2,800,000. The RFC has been repaid $1,900,000 of its $3,400,000 loans. Expenses of receivership for the 16 months have been $102,000. Stockholders were assessed $1,000,000. They have paid $213,700 and still owe $783,000. CHEVY CHASE BANK Receiver Hardee reported also for the Chevy Chase Savings Bank. It has not yet been decided whether or not stockholders of this bank will be assessed. That means the bank is expected to pay 100 per cent to creditors without a stock assessment. Its assets at closing were Collections have been $588,000. Uncollected assets are $297,000. Some losses were charged off. There remain $281,000 of deposits to pay, but the remaining assets (also at face value) are said to be much higher in value than those of most of the other closed banks. Depositors have had 60 per cent of $662,000, or $403,000. Cost of Hardee's receivership, since Nov. 15, was $2964. Cost of the conservatorship, prior to that date, was $11,000.

11. May 17, 1937 Evening Star Washington, DC

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CHECK ON HOLIDAY ISHELDUNLAWFUL Federal-American Case Is Reversed by Court of Appeals. In a ruling said to be applicable to a large number of similar claims, the United States Court of Appeals reversed a District Court ruling and held today that payment of a cashier's check by the former Federal-American National Bank during the 1933 bank holiday was contrary to law. The. question was raised by Cary A. Hardee, Federai-American receiver, who sought to recove% for the bank $1,500, representing half of a $3,000 cashier's check given to a depositor, Mrs Minnie Dixon Young, March 3. Mrs. Young deposited the check in the Washington Loan & Trust Co. the same day. The next day, March 4. was Inauguration day and a holiday, and March 5 was a Sunday. At 1 a.m. March 6 President Roosevelt declared the bank holiday. Cash Received for Check. A week later the Washington Clearing House Association decided that District banks should pay cashier's and certified checks. Immediately after this decision the Washington Loan Trust Co. presented Mrs. Young's check at the Federal-American for payment and received the sum in cash. That evening Federal-American offcials learned that the institution had not been approved for reopening. Later, the Federal-American receiver demanded return of half the amount of the check, the other half being represented by a 50 per cent dividend to Federal-American depositors. The demand was refused and the receiver filed suit in the District Court, which decided against him. Prohibited in Holiday. The Court of Appeals said that the payment of the cashier's check was a banking transaction within the meaning of the President's proclamation and was prohibited during the holiday. The court stated that the situation was no different than it would have been had the check been paid directly to Mrs. Young rather than the Washington Loan & Trust Co. Hardee was represented by Attorneys Huston Thompson, Herbert S. Ward and Thomas H. Patterson. Attorneys George Barse and James M. Kane of the Treasury Department's Division of Insolvent Banks appeared in the case as friends of the court.