2032. Hamilton National Bank (Washington, DC)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: national
Bank ID: 12194
Charter Number: 12194
Start Date: March 6, 1933
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini
Short Digest: e0bebabc

Response Measures

None

Description

Several Washington banks were closed by the March 1933 bank holiday; seven closed banks' assets were merged into the new Hamilton National Bank which opened Sept 25, 1933 and made 50% of deposits available. No run on the Hamilton is described in the articles.

Events (3)

1. May 5, 1922 Chartered

Source: historical_nic

2. March 6, 1933 Suspension

Cause: Government Action
Cause Details: Banks were closed by the national presidential bank holiday proclaimed in March 1933; member banks were operating on a restricted basis under conservatorship.
Newspaper Excerpt: tied up since March 6, when all banks were ordered closed by presidential proclamation.
Source: newspapers

3. September 25, 1933 Reopening

Newspaper Excerpt: the Hamilton National Bank threw open its doors for 100 per cent banking business today ... the new institution being a merger of seven banks ... The Hamilton Bank opened next Monday morning, would release about $8,000,000 in deposits. Opening of the Hamilton bank next Monday morning Mr. Graham said, would release to depositors about $8,000,000 which, supplemented by payments made out of insolvent banks ... The Hamilton National Bank opened today, releasing about $8,000,000 in deposits. the new institution opened today, Sept. 25, 1933 (articles dated Sept. 25, 1933).
Source: newspapers

Newspaper Articles (12)

1. June 10, 1933 Evening Star Washington, DC

Article from Evening Star, June 10, 1933

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GROUP REAFFIRMS MERGER SUPPORT Central Business Men Again Ask U. S. Savings to Join New Bank. Merger of the United States Savings Bank with the Hamilton National Bank, which is being stoutly opposed by Wade H. Cooper, president of the United States Savings, was unanimously indorsed yesterday by the Central Business Men's Association at a luncheon meeting at the Ann Clarendon Club, Seventeenth strec and Rhode Island avenue. This was the second action which the association has taken in the matter, a previous resolution of a less decisive character having been adopted at a meeting of the association last week. Clarendon Smith, of Arthur today president there the association, explained was no question about the action yesterday. although there had been some members at the meeting a week ago, who had been uncertain about their position. The vote yesterday was unanimous, Mr. Smith said. Explained by Conservator. "As a merchant who has talked with many people about this matter in the past week, and as president of the Cen- will tral Business Men's Association I give my unqualified support to this merger movement." he added. The proposal to merge the United States Savings Bank with the Hamilton was explained to the meeting by Wilbur H. Zepp, vice president and conservator of the bank. It was discussed freely by several members of the association, and was reclared by speakers to be the best pian for the depositors. the D1 of Cooper attempt tr. bank alone, of the - known to Mr. Smith association, to While reopen merger explained, members the to outside meeting, of there the was no discussion of it at and no one spoke in favor of it. Cooper still is understood to be makefforts to get the bank reopened the ing outside of the merger, but none of plans which Cooper proposes has bee approved by the Treasury Department Approved by Treasury. The plan to merge the United States NaBank with the Hamilton is known to have Savings tional, the and approval will the Treasury Department, out, no doubt, in efforts, which of be succeeds carried unless he take says Cooper the he has under consideration, to matter to court. He has been in conference with his attorney in the matter, but said' this morning final decision what has not yet been reached as to course he will pursue. Meantime the campaign to sell stock the Hamilton National continued a in today with the figures running over million dollars, and working toward the of $1,250,000, which is to be set new up as goal the capital structure of the seven bank merger. The only member of the merger is over the which a controversy has arisen others United States Savings Bank, the from all going forward with support the old officers and directors. Should the stock be sold and a Edwin charis obtained, it is the hope of bank, ter Graham. president of the new probC. the bank early in July, definite to open Wednesday, July 5. No howably for opening can be made, arplans until many other preliminary including ever. are completed, stock, rangements sale of the necessary capital selection the setting up of personnel, sethe branches, adoption of by-laws, of of a charter and court approval of curing contracts between conservators of the the the member banks and officials new Hamilton.

2. July 6, 1933 Evening Star Washington, DC

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BANK DEPOSITORS WILLI BE TOLD HOW TO COLLECT MONEY 75,000 to Get Merger Letters With Opening Likely on August 1. FORM GIVES DETAILS FOR PRESENTING CLAIMS Conservators of Eight Member Banks Busy Getting Statements of Accounts Ready. Letters were being prepared today to inform the 75,000 depositors in the new Hamilton National Bank merger as to the method they must use to get their money when the bank opens, probably August The form for these letters will be the same for each of the eight member banks of the merger and was understood to be in the final stages of preparation today Legal experts of the Treasury Department were completing the form of this letter and as soon as it is approved, it will be forwarded direct to the eight conservators in charge of the member banks of the merger The conservators then will send them out to all their depositors Details of the letter and the instruc tions which it will contain were not available today but it was understood that with the letter there will be sent to each depositor a form for proving the depositor's claim This form will contain complete instructions as to what the depositor must do to get his money It is believed the plan will be for the depositor to file this form, duly certified, at his old bank When he does this, it will open the way for him to get 50 cents on the dollar of his deposits in the new Hamilton Bank. Five Sites to be Abandoned. In view of the fact that five of the banking houses are to be abandoned the depositors will be informed how they can arrange to get their money from a new Hamilton branch The old banking houses to be abandoned will not pay out any money These places will be used only for proving claims of depositors and include the District National Bank headquarters and its two branches, located at Connecticut avenue and K street and Ninth street and New York avenue the branch of the Federal American National Bank & Trust Co., at Fifteenth and H streets, and the Washington Savings Bank The nine places where money will be available are the Federal American headquarters and its three branches, in Brookland, at Dupont Circle and at Pennsy Ivania avenue and Twentieth street; the Potomac Sav ings Bank, the Northeast Savings Bank the Wcodridge-Langdon Savings and Commercial Bank, the Seventh Street Savings Bank and the United States Savings Bank Conservators of the eight member banks today were busily directing the clerical work preliminary to getting the statements ready for depositors Exactly how the depositors will be informed of the amount available was not disclosed prior to the final approval of the official letter and the official form but it was believed that this letter which each depositor soon will receive direct from his conservator. will contain the figures showing his account Where depositors have more than one account, arrangen nents are being made to consolidate the report so the depositor will be informed officially as to what he has in his checking account his savings account. his Christmas savings account or on certificate of deposit The task of getting out these leters of course. will be tremendous. even after the conservators receive the necessary form. It was expected this form would likely reach the conservators tomorrow. Loans Reorganized. Meantime, the member banks of the merger are reorganizing their loans with the Reconstruction Finance Corporation so as to provide for their quick assets being turned over to the Hamilton National Bank to provide for payment of the 50 cents on the dollar Progress also was reported today in the plan of the Franklin National Bank to reopen alone outside the merger although the final preparation of its plan to reopen has been admittedly slow This bank has had in hand for some time the necessary amount of depositors agreements from depositors representing more than three-fourths of the deposits in the bank But many other details of the reorganization of this bank have been slowing up the procedure of reopening, so that it was impossible today to predict just when this bank would reopen The Treasury Department has promised it will reopen alone as soon as it can be properly prepared Among the difficult questions facing this bank are understood to be those concerning personnel. At the Park Savings Bank four different committees are studying the problem presented by the tangled affairs where Robert S Stunz, the vice president, committed suicide leaving a shortage of about $1,700,000 An important statement is expected with the next 24 hours from the so-called Depositors' Committee. headed by J. W Thompson. This committee has been working on a plan, the details of which are not disclosed as yet, but which they hope to put into operation to gain a much larger percentage for the deposia tors than would be possible through receivership. There is a sharp difference of opinion between this committee and the three other committees at the Park Bank over the question of Treasury Department receivership, the Thompson Committee being stoutly opposed to the Government appointing a receiver under the direction of the controller of the currency.

3. September 1, 1933 Evening star Washington, DC

Article from Evening star, September 1, 1933

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ACTION OF COURT IN HAMILTON BANK CONTRACTS DELAYED (Continued From First Page.) conservator: Tobriner, Graham, Brez & United Savings Bank. which hub the part the the Hamilton not open Cooper bank the that not have and was able debts. Details Pushed. Meantime few movements under which be pushed forward for the merger instance. articles association the Hamilton drawn an that the going and are required before the charter to Treasury approval. details the sale assets from the eight member banks issuance books depositors the proceedings Justice Adkins chambers about today, the anticipated approval by the court postponed Cooper's jection. to have been somewhat dramatic. Issue Expected. Both sides to controversy for some the Hamilton came Decision had been reached late night present the question the this morning Although and the Hamilton National officials claimed proceeding. they notified about The Hamilton notification extended Cooper courtesy. formed from time general they Cooper claimed chambers should notified advance and move this sudden attempt claimed had formulated should prepare papers. Adkins was presented with contracts attorneys senting the the Hamilton Cooper who had rushing bill the about the middle to the his was against the the United States Savings against When attorney Thomas claimed Col. Cooper the the Savings Bank therefore. was enthe Roger the Hamilton counsel for the Treasury his own for George general counsel the division insolvent of the office assistant counsel, the Justices Protested. Justice Adkins. volunstockholder the Federal- American which owned the American National Trust Co., members Thomas objected Justice hearing He jected Justice F. Dickenson Letts Whether of jurisdiction hearing be Tuesday morning Government and the Hamilton officials claimed should hearing. sisted hearing and that he has right Col. Cooper's legal staff. headed by Thomas. Staggers and Louis Whitestone

4. 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.

5. September 20, 1933 Evening Star Washington, DC

Article from Evening Star, September 20, 1933

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RECOVERY SEEN BY NEW BANK HEAD Graham Tells Ad Club Capital Is Pulling Out of Its Slump. Predicting that Washington was recovering from several blows to its prosperity, such as Government economy, closed banks and depression psychology, President Graham of the new Hamilton National Bank forecast yesterday in an address to the Advertising Club at the Raleigh Hotel a turn for the better and better business 1 Fall. The Hamilton Bank will add to this upward swing. he pointed out. by releasing to depositors in seven member banks a total of about $8,000,000 when the new merger opens next Monday morning, to return full banking facilities to the public In outlining the many steps necessary to opening of the new merger. Mr Graham referred to the raising of capital stock and other details. and explained loans from the Recon: ruction Finance Corporation to member banks were reorganized and a new refunded loan of more than 000.000 was advanced to member banks by the R. F C "Let me emphasize here. he said. "that the new Hamilton Bank does not owe a nickel to the R. C. Those obligations rest between the R. F. c. and the member banks Program Is Broadcast. Mr Graham was followed by Roger J Whiteford, counsel for the Hamilton, who took up other phases of the new financial institution. explaining it as a 'community bank with wide appeal The speakers were introduced by W.D Barkdull, president of the Advertising Club. A half hour of the program. including the addresses, was broadcast by station WRC. Among the guests were W. Irving Shuman of the Treasury Department. who has been active in organization of the Hamilton Discussing the prospect for recovery here, Mr Graham summarized Recovery after all is proper psychology growing out of sound conditions. Conditions generally have improved here. Retail trade is substantially better It is useless to say building and real estate have been going forward. Real estate here was the last to feel the benefit of prosperity and is now among the last to be affected adversely by the depression It should and will improve in time. for Washington still is underbuilt Sees U S. Policy Changing. Government threats of reduced per sonnel and cut pay rolls are gradually fading into the reality of more personnel and bright promise of restored pay Frozen deposits in banks are about to flow again into the channels of trade Bank facilities are returning to the community long deprived of their bene. fits Washington the last to feel the weight of the depression, already is rapidly pulling back toward normal Prospects for Fall business have nothing but favorable elements The National Capital is on the verge of economic revival Let us all pull together to make that revival a golden reality Opening of the Hamilton bank next Monday morning Mr. Graham said, would release to depositors about $8. 000.000 which, supplemented by payments made out of insolvent banks in the form of dividends. would make available frozen funds to the total of about $12,000,000. The Hamilton Bank he said, would provide complete bank ing service and the use of 50 per cent of depositors funds tied up since the bank holiday. Predicts Money Movement. Release of, the money. he predicted, would have a beneficial effect both ac debts. tual and psychological Many no doubt. will be paid. he said, "many expenditures will be made and new obligations contracted This cannot but help Washington. It should prove a vital stimulus to business Referring to the other half of the depositors' funds left in the hands of conservator of member banks of the merger, Mr. Graham said: While the Hamilton is not direct responsible for release of this second 50 per cent of the depositors money, officers of this new bank will continue to keep in close touch with the Treasury Department, the conservators and others, hoping that the largest amount possible can be realized from this second 50 per cent The amount probably will vary with the banks different member Denying rumors that he had come into the new bank "only to get it organized. Mr. Graham said am in this movement to carry on so long as I am needed The depression, he pointed out. had hit Washington later and much less than other cities. The 15 per cent pay cut in the Government had reduced income here by $15,000,000. he estimated declaring further. however, that this amounted to cutting the income of Washington from $165,000,000 to $150. 000.000. But other cities with comparable incomes had suffered worse, he said. Recovery Program Felt. The recovery program was having effect here already he said Hotels were filled with delegations and committees, Government personnel had been increased and the President had held out promise of restoration of the 15 per cent which had been cut from salaries Mr Whiteford characterized the Hamilton as a *community' bank because about 4.500 depositors in closed banks had assigned part of their deposits to buy stock and. in addition more than 400 citizens, including some corporations here had subscribed to raise the $1,250,000 capital structure of the new institution. More than 50.000 depositors in all parts of the city, he said. also gave it a city-wide interest. Mr. Graham was praised by the speaker as a business man who had been trained in banking and thus knew the business needs for banking service as well as the sound principles of good banking Mr. Whiteford explained that the bank had depositors in many parts of the world, including South Africa. Egypt, Turkey, Italy, France Latvia, Greece, Chile, Argentina, Brazil and Japan. Forbids Dogs to Bark. CLEVELAND (AP).-If City Council

6. September 23, 1933 Evening Star Washington, DC

Article from Evening Star, September 23, 1933

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asked to be relieved from service on the committee on account of pressure of other work for the organization The bankers code comes up for hearing in this city on September 28 Victor B. Devber president of the Second National Bank who was made a member of the Executive Committee of the National Bank Division of the A.B.A. at the Chicago convention. now has been appointed by the chairman of that section as a member of the Committee on Relations with the Federal Reserve System He is to represent the fifth district, which includes Washington, Maryland, Virginia, West Virginia and the Carolinas. He also has been appointed member of the National Bank Division's Committee on Federal Legislation Howard Moran. vice president of the American Security & Trust Co. also has been accorded more honors than were first announced from Chicago Besides being made a member of the Savings Bank Division's Committee on Bank Management, he was elected vice president of that division of the to B. A Having just completed a threeyear term on the Executive Committee of the Savings Bank Section. he was rewarded for his service with the vice presidency Many Loan Inquiries Received. The Reconstruction Finance Cor poration has received 'lots of in quiries' relative to its loans to bank for the expansion of credit, Chairman Jesse Jones reports. Officials anticipate that not all of the banks will be eligible to receive such advances. due to their inabiliti to furnish satisfactor collateral To date no such loans have been made. the chairman explained The loans would bear 3 per cent interest and extend for not more than six months, with the understanding that the money so furnished would b re-lent to business and industry at no more than 5 per cent So far as learned in the local financial district the banks here have not applied for any of these loans. Stockholders Here Surprised. Holders of Paramount-Publix Corporation stock in this city, who have been carrying the stock over a long period, expressed great surprise when they read the Associated Press dispatch which stated that Adolph Zukor, head of the company, had received a salary in 1929 of $120.000 and a cash bonus of $757.500 and that Jesse Lasky had received a like salary and bonus It was also brought out in court that other officers had also received similar high salaries and bonuses. Capital brokers recalled today that Paramount stock traders here paid as high as 70 and 75 for the stock shortly before the Wall Street tumble in 1929 The high for that year was 761/2. The stock now is selling around 1 1/2 on the Produce Exchange in New York When the firm went bankrupt, the stock was taken off the big board A group of creditors in New York are bringing legal action against the officials, and the salaries paid were brought to public attention during the hearing before the referee. Speedier Farm Loans Urged. Federal land banks and all agencies of the Farm Credit Administration en gaged in refinancing farm mortgages have been called on by Henry Morgenthau jr. chief of the Farm Credit Administration, to speed activities Both the land banks and the national farm loan associations are required to make sound loans. but they need not exact excessive security. he stated He urged that all applications for loans be considered sympathetically and everything possible be done to remove part of the burdens now carried by farmers The $150,000,000 granted to the Farm Credit Administration by the Reconstruction Finance Corporation recently will be distributed to the Federal land banks as they need funds. Mr. Morgenthau stated He said the funds would not be allocated to the various banks but would be put out wherever needed More Normal Times Predicted. Bankers and business men in this city are predicting more normal times during the remainder of the year. the forecast being based on the opening of the Hamilton National Bank Monday morning The new institution. a consolidation of seven restricted Washington banks. will free some $7,500,000 which has been tied up since the Nation wide moraof torium last March The liberation 50 per cent of the funds in these various banks will be felt in every line of business in the city, in the opinion of leading financiers The money will be available for use in wholesale or retail trade. the payment of debts. interest loans and a countless number of other ways. Depositors can leave it all in the new bank if they wish and go on building up ac counts from where they left off last Spring Funds can be switched from checking to savings accounts if depositors desire. as checking accounts no longer are permitted to pay interest in any bank The Washington Clearing House figures will reflect the new bank's opening as clearings are certain to increase in monthly totals during the rest of the year. To date local clearings are considerably behind the figures during the similar period in 1932 Heard in Financial District. As noted in late editions yesterday, the directors of the National Metropolitan Bank have declared the regular semi-annual dividend of 3 per cent on the capital stock. pavable October 16 Transfer books will be closed from October 6 to 15. inclusive. Payment of more than $1,000,000 to depositors of the Commercial National Bank now in ceivership, will be made next Tuesday This is the day after the opening of the Hamilton National Commercial National depositors have waited ever since last February for the first payment and are naturally greatly pleased that it is coming so soon The Washington Rapid Transit Co reports to the Public Utilities Commission that in August net income showed a deficit of $8,363 compared with the higher figure in August last year of $9.874 This is an improvement of over $1,500 in the month's business over Au1932 gust, Bradstreet's report of much better retail trade during the last week and steady expansion in purchasing power was greeted here with unusual interest. New Traffic Lights. New traffic signals at Trafalgar

7. September 25, 1933 Evening Star Washington, DC

Article from Evening Star, September 25, 1933

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BANKING EXPANDED HERE BY OPENING New Hamilton National Adds Substantially to City's Facilities. BY EDWARD C. STONE. Washington's banking map, which has been very much contracted since last March, was expanded materially today by the opening of eight banking offices in various parts of the city As noted in detail elsewhere in today's Star. the Hamilton National Bank threw open its doors for 100 per cent banking business this morning, the new institution being a merger of seven banks which have been operating on a restricted basis ever since the bank holiday last Spring The consolidation gives citizens access to 50 per cent of the funds that were tied up in 11 different banking offices The new bank has a main office and seven branches. While the District National's building and that of the Washington Savings Bank are not being used by the new institution, yet these banks are in the merger and half the funds in these two banks were made available today to their old depositors who opened accounts in the Hamilton The branch of the FederalAmerican at Fifteenth and H streets northwest not was reopened The Hamilton's main office is located at Fourteenth and G streets. in the former Federal- American National Bank & Trust Co Building. The seven branches are the Potomac at Wisconsin avenue and M street in Georgetown Woodridge-Langdon, at 2027 Rhode Island avenue northeast Northeast formerly Northeast Savings Bank. 800 H street northeast Seventh Street Seventh and N streets northwest Brookland. at Twelfth and Newton streets northeast Dupont Circle. Connecticut avenue at Dupont Circle, and Pennsylvania Avenue at Twentieth street northwest All eight offices did a rushing busi ness today Some depositors put in money others took some out. New ac. counts were opened After banks have been closed several months. there is banking business of every kind to be transacted Tellers had to hustle Officers were rushed attending to important matters for customers All day bank officials were showered with congratulations and best wishes by other bankers. business men old and new depositors and personal friends. Each banking office was literally buried with flowers the gifts of business friends and admirers 'A blessed event said one visiting banker By far the most important local financial development in the past six months, said another Daylight Savings Time Ends. Tickers in the brokerage offices here started off at 10 o'clock this morning an hour later than usual because of the conclusion of daylight savings time in New York Local offices were well filled with customers as the new sebedule went into effect Clocks in many of the offices which have been running on davlight time all Summer, were set back on standard The market opening was irregular and somewhat lower in the majority of stocks. It is generally believed among traders that there is to be no inflation of currency The President is understood to favor inflation of credit This means that speculators will have a hard time forcing stocks up with wild inflation talk Some brokers here think that the price of wheat cotton and other commodities and the price of the dollar abroad may be the leading market factors for time Now Comes Kidnaping Insurance. So far as known, Washington residents are about to be offered kidnaping insurance for the first time Old-time life insurance. accident insurance and every other kind, including insurance against hurricanes, has been offered here for years M Leroy Goff. in the Woodward Building, says that insurance against kidnaping was first started in London Risks have been taken on both adults and children The insurance companies in England have been unwilling to take any risks on people who have been threatened by kidnapers. Up to this time there has been quite variation in rates. It was understood today that definite rates have not been established in Washington Rates in England have been based partially on the prominence of the people insured and the amount of wealth which they are supposed to have Security Storage Dividend The board of directors of the Security Storage Co. have declared the regular quarterly dividend of $1.25 per share on the stock of this company payable on October 10. to the stock holders of record at the close of business October 6. the books to be closed between said dates respectively The first sale on the Washington Stock Exchange today was $1,000 transfer in Washington Railway & Electric 4s at 85. Washington Gas 5s. 1960, came out at 103 3/4 on $1.000 sale Washington Gas 6s series B, moved in $1.000 sale at 1031 a Capital Traction 5s appeared on the board twice, both $1,000 sales. one at 54 and the other at 531% The closing bond sale was a $500 transaction in Washington Gas 5s 1958 at 85 Trading in the stock division was confined to Railway & Electric preferred small lot moving at 861/2 and another small lot advancing to 87 Heard in Financial District Tomorrow is the date announced for the payment by the Commercial National Bank of more than $1,030,000 to depositors in this institution which is now in receivership This will be the first payment since the bank was closed last February and is about 20 per cent. according to Receiver Baldwin National Power & Light Co. has declared the regular quarterly dividend of $1.50 on the per cent preferred stock. payable November 1 to stock of record October One hopeful sign for the utility companies comes from Philip Lieber, president of the United States League of Building and Loan Associations Mr Lieber declares, according to the Wall Street Journal that re-employment will enable 1,000,000 families to leave the homes of relatives and set up their own homes within a year If Mr Lieber's prognostication proves correct the change would mean substantial pick-up in domestic business for utility companies The 'doubling up' process was one of the important factors in cutting down utility companies' domestic load

8. September 25, 1933 Evening Star Washington, DC

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HAMILTON BANK'S OPENING MARKED BY NEW DEPOSITS One Receipt of $100,000 and Another for $50,000 Reported. BALANCE EXPECTED TO GROW DURING DAY President Graham and Other Officers Recipients of Many Congratulations With its headquarters and seven branches decorated with flowers and comfortably filled with customers, the new Hamilton National Bank opened today, releasing about $8,000,000 in deposits. To the surprise of both officials of the bank and police who had been stationed at each of the buildings. no lines formed before the opening hour of 8:30 and early crowds were small. The number of customers increased, however, during the morning hours until just before noon most of the lobbies were fairly well filled. Some persons were withdrawing while some others were making new deposits. President E C. Graham of the Hamilton merger and other officers were flooded with congratulations arriving by mail and by wire and there was a spectacular floral exhibit of baskets of flowers at headquarters. Deputy Controller of the Currency Lioyd G. Awalt called at the Hamilton Bank shortly after noon to greet President Graham and congratulate the officers on the opening of the new institution. Awalt was acting controller of the currency when the movement for merger of the Hamilton Bank was first started He came to the bank in the company of Maj. W Irving Shuman of the Treasury Department. who had handled the Government's negotiations for opening the new merger Most of the withdrawals were said to be small while there were many substantial new accounts. officials said Among the deposits at Hamilton headquarters at Fourteenth and G streets were one for $100,000 and another for $50,000. Larger Deposits Seen. While some bank officials were too conservative to make a prediction about the net business for the day. it was freely predicted in some quarters where the flow of business was being watched closely that by the end of the day the Hamilton would have ,larger deposits than when it opened for business this morning. The first customer at Hamilton headquarters arrived at 7:15 a m. with a request to make a deposit. He was George Tait. 421 Fifteenth street southeast He was admitted and made a deposit While the formal opening hour was 8 :30. the front doors of the Hamilton headquarters were actually opened for a little group of about four women who were there at 8:15. and from then on the customers came in a small but seadily increasing stream during the morning Established with a capital stock of $1,000,000, with $250,000 surplus. the Hamilton had on hand this morning to meet the demands of its depositors $2,500,000 in cash, President Graham said Most of this had been delivered to headquarters and to four of the member branches Saturday, but some of it was distributed to the three branches of the old Federal-American National Bank & Trust Co. early this morning President Graham. in an official statement on the financial set-up of the bank today said With a capital structure of $1.250.000, the Hamilton National Bank eniovs the unique position of being practically without liabilities beyond its deposits. Unencumbered by Loans, "In respect to assets. the Hamilton is a particularly model example We are unencumbered by loans or real estate All assets taken over by the bank consist of cash Government bonds, listed bonds at Saturday's selling prices. and loans on which schedules are checked up to date by the United States Treasury and Federal Reserve Board. This statement plainly shows that the Hamilton Bank has nothing but prime assets upon which depend the security and financial integrity of an institution of this kind. The value of equipment for the several banks comprising the Hamilton institution amounts to less than $50,000 The Hamilton has not borrowed a dollar from the R. F. C. or from any other source. Meantime, the Treasury Department had no appointed new conservators to take the place of four men who were taken over by the Hamilton National Bank for its official staff What the Treasury will do in this respect remains to be seen, although the business of conservatorship was moving forward today in these four banks- the District National. the Washington Savings, the Northeast Savings and the WoodridgeLangdon Savings and Commercial Bank. Some kind of action by the Treasury is anticipated soon in this respect as the situation regarding these in old member banks is now left "up the air." This, however, does not affect in any way the operation of the new Hamilton merger and it is anticipated that the Treasury will clear up the inservatorship question shortly Reports received at Hamilton headquarters from its seven branches pointed to a situation in the outlying houses very similar to that at headquarters. Many persons were making withdrawal (Continued on Page 3. Column 5.)

9. 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.

10. 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)

11. July 23, 1934 Evening Star Washington, DC

Article from Evening Star, July 23, 1934

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E. Leahy and William considered J. William Jr. attorneys. I the Hughes, the grounds upon which stockalso committee proposed that assessments the might defeat the of holders on them by the controller a telelevied Mr. Leahy in repudithe currency conversation with me said that phone the entire contract and he had ated read It and that subhe never given any opinion on the letter or never matter expressed in the not given ject contract and had whether in the study to the question of defeat any not the stockholders could take or assessment and that he would his the steps to withdraw name immediate as a party to the contract. 'As a director and counsel for the National Bank, it of is the my Hamilton that the stockholders defend District opinion National Bank cannot attheir assessment by an into against the contract entered Bank tack upon the Hamilton National District between the conservator of the of and National Bank through the office by controller of the currency, the which prime assets of the District the National Bank were purchased by Hamilton National Bank. The conhad the authority to make this troller contract and contracts of character the have been made all been over country and have already instant approved the by courts and the juscontract was also approved by a the of the Supreme Court of assets tice District of Columbia. For the purchased the Hamilton National value paid in cash the market of Bank all securities as of the day all transfer of and the face value of innotes, together with accumulated terest thereon. "If attack upon this contract was for an it would be necessary successful stockholders or the District those National Bank to return to the Hamil- for National Bank the cash paid these ton assets, which, of course, neither able bank nor the stockholders are into to the do, as the sum involved runs the millions. "This attempt of a self-constituted a stockhalders' committee, headed by Napresident of the District former Bank, to attack the contract tional the Hamilton National Bank or should with not command the attention of many of the stockholders These respect the District National Bank. stockholders of are stockholders in an insolvent institution and they owe the a and legal obligation to moral of the District National fullest Bank creditors that they are paid to the double to see and that includes a these liability extent. upon the stock that Disstockholders have enjoyed in the trict National Bank for many years. Transaction Legal. "The only dividend representing 50 cent of their deposits that the creditors per of the District National Bank have received for a period of more Naa year since the District the tional than Bank closed came from cash made available by the Hamilton of Bank for the purchase was National assets. The transaction entirely these legal, the District National Bank is insolvent, the controller, the of the currency is compelled under the to make an assessment and law conduct of a few minority stockholdthus to escape their responsibility ers to the needy creditors of the District National Bank by attempting to attack the legality of the contract upon Mr. the basis of a legal opinion of that he never gave will only Leahy the contempt of fair-minded citizens. arouse Dozens of the stockholders District National Bank sothis letter and in the Hamilton stockholders licited of the by contract National are Bank and they, together with thouof disinterested persons in the of Columbia, are sands District pleased that with the the phenomenal success Hamilton National Bank has had in the few short months of its career."

12. June 9, 1941 Evening Star Washington, DC

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$400 Bid for Last Paper Assets of Seventh Street Bank Notes, Judgments and Overdrafts Included But Not Realty Rudolph B. Behrend of this city, with an offer of $400, was high bidder for all remaining paper assets of the closed Seventh Street Savings Bank at an auction sale conducted this morning by Receiver Justus S. Wardell at his office, 1429 I street N. W. There were eight bidders. The second high offer of $375 was presented by Bernard L. Hefler of this city. Mr. Behrend's offer must be approved by District Court before it can be accepted finally by the receiver. The assets included notes, judgments, overdrafts and others, totaling about 125 items. The receivership of the Seventh Street Savings Bank is one of several to be closed up this year under orders of the Controller of the Currency. Receiver Frederick J. Young was to sell remaining assets of the Commercial National Bank this afternoon. In the auction this morning the only remaining piece of real estate was not put up for sale. It is the building formerly occupied by the bank, but now used by the Hamilton National Bank. which took over the best assets of the Seventh Street institution, that the first dividend of 50 per cent was made available to depositors. The building at Seventh and N streets, now rented by the Hamilton, is for sale by the receiver. With a view to settling the $100,000 stock assessment, which has been levied by the receiver against 123 stockholders, a compromise offer has been made by the stockholders, through counsel, it was learned today. Some stockholders have paid on their assessment, while others have not. When liquidation of the Seventh street assets has been completed, another dividend will be paid to the 2.500 depositors.