1.
July 16, 1932
Evening Star
Washington, DC
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OFFICER ASSURES BANK DEPOSITORS Treasury Delivers Truckload of Money to Meet Northeast Savings Demands. Reassurance regarding the stability and strength of the Northeast Savings Bank. Eighth and H streets northeast. which has had an unusual number of withdrawals for the past two days, was given today when the Treasury Department delivered a truckload of cash to the institution and George F. Hcover. executive vice president, announced to assembled depositors that they would be paid if they desired to withdraw their accounts. Mr. Hoover. addressing the crowd which filled the bank a few minutes before noon. assured them that the bank was sound and it closed at the regular hour of noon and will reopen this evening at 6 o'clock. Mr. Hoover explained the unusual demand on the institution by the similarity of name with the North Capitol Savings Bank. taken over by the controller of currency. That institution is located in the same neighborhood as the Northeast Savings Bank. No change has been made in the board of directors or the officers of the bank. Mr. Hoover told depositors. and the institution has the full confidence of the Treasury Department and large downtown bankers. The Northeast Savings Bank was founded 16 years ago with a capitalization of $100.000. Its total resources are $1.600.000. Sixty days ago. Mr. Hoover declared. it was examined by the Treasury Department and found to be in excellent condition.
2.
July 17, 1932
Evening Star
Washington, DC
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REGAIN CONFIDENCE IN SAVINGS BANK Depositors Quit Line at Northeast Institution-New Accounts Opened. Following a number of withdrawals during the past two days at the North- H east Savings Bank, Eighth and streets, George F. Hoover, executive vice resident, said last night he had noted trend to re-establishment of confi- and dencé a in the soundness, strength safety of the bank when several people left the line and a number of new will accounts were opened. The bank Monbe ready for business as usual day morning, he announced. This bank is sound, safe, in a posi- to tion to pay everybody and intends "There do it," declared Mr. Hoover. is no reason whatever why people be unduly disturbed at rumors will be open as able to morning, and ness should We Monday usual be The for busi- bank take care of everybody. was open during the regular Saturday evening hours last night. Officers Are Unchanged. truckload of cash was delivered to A the bank yesterday from the Treasury Department. Just before the regular Mr. hour at noon yesterday depositclosing to assembled in ors no change has officers Hoover the that board explained of directors or been the made of the bank. He said the institution the full confidence of the Treashas ury Department and large downtown bankers. Northeast Savings Bank was The 16 years ago with a capitaliza- are Its total Sixty days ago, $1,000,000. tion founded of $100,000. resources Mr. Treas- Hooit was examined by in and ury ver said, Department found the to be excellent condition. Meantime, from the Mount Vernon and Bank, at Ninth street official Savings avenue, came an last night over the of W. Lee, president, to statement Massachusetts Frank leading signature offering reward "for information and conviction of spreading the $500 persons arrest damaging the Savings rumors person or concerning the Mount Vernon Bank. "Never in Better Condition." malicious and unfounded rumor has "A been spread througout the city, his statement. "and of the Government in the stability said some concerning particularly depart- of this which has uneasiness to some of our ments. institution. some naturally have Christ- deposi- caused those who bank. vacation savings in in to assure our tors, mas We wish and especially depositors the that particular. and the public at large, was the Mount Vernon Savings Bank in a better financial position never than at the present time. We are pre- our pared to meet every obligation and depositors need not feel the slightest funds concern for the safety of their held in their name in this bank. We strongly urge our depositors not their savings. in our bank than much to withdraw safer They put they away will are carried on the person. or the for be supposedly safekeeping about house. Vernon Savings Bank is and sound as the Rock raltar. as We have, can, and solid The Mount will of meet Gib- us All demands made upon have ask is that those we all served legitimate we can so well in the past institution. continue have confidence in our that to pledge our word and honor such We confidence will not be misplaced. Can Pay All Obligations. not listen to idle rumors. If in- in'Do is wanted concerning our stitution. formation its officers will gladly supply that Again we declare is on Mount request. Bank to it Vernon Savings pav the liquid. and in a position in full sound. all of its obligations on We demand trust this statement will reassure have those of our depositors who may rubecome disturbed over the malicious mors heretofore who have referred already to. withdrawn sugTo those and vacation savings, we bank, gest will be safe and where Christmas they they return them to the our available purpose when actually needed for acintended by the depositor when the count 'In closing, was large opened. we depositor desire to has say withdrawn that that not a single dollar from our bank except busineeded a in the ordinary conduct of ness. wish to take this opportunity to these to We our sincere appreciation and the express depositors for the support " given confidence displayed.
3.
July 23, 1932
New Journal and Guide
Norfolk, VA
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$5,000 DEPOSIT HELPS BANK TO WEATHER STORM
Prudential In D. C. Is Victim Of Store's Scare
WASHINGTON, D. C.-While bank examiner kept watch ready at any minute close the institution, the Prudential Bank, 715 Florida Avenue, northwest, weathered twoday run on it last Friday and Saturday and resumed business as usual Monday morning. The run was stemmed after every resource and minute speakers were called into action to persuade depositors not to withdraw their funds. From every pulpit in the city Sunday an appeal was made against continuation of the run. Meanwhile officers and directors of the bank were conference working out plans for keeping the bank open. Deposits $5,000 At the most critical moment Saturday, Mortimer M. Harris, an attorney, climbed into chair and announced to the crowd in the bank that E. A. Clements would make a deposit of $5,000. Clements left the bank hurriedly. Finally he came back and brought with him a stack of bills totaling $5,000. He handed them to John R. Hawkins, president of the bank, with the declaration, "That's what think of Prudential!' The crowd burst into cheers. Some withdrew from the lines. The run began Friday following the closing of four white banks here. Collateral totaling more than $20,000 was hypothecated at other banks to meet the demands of depositors. Depositors Quieted Officers of the bank asked depositors to attend a meeting at Mt. Carmel Baptist Church Friday night. Pledges agreeing not to withdraw more than 10 per cent of their deposits in the next 30 days, signed that night and the next morning reached the figure of $101,000. When the bank reopened Saturday morning the run was continued. Officers and supporters of the institution appealed to the crowd not to wreck the institution by withdrawing all their funds. Speaker ,after speaker mounted chairs and addressed the crowd. Other officers and supporters sought signatures to pledges. The bank invoked the rule against member of the national staff and later financial secretary of Shaw University, was called to the secretaryship at Houston, Texas, succeeding Gilbert T. Stocks, who resigned. Mr. Craver is graduate of Shaw University and the University of Chicago. He served many years the student work of the National Council. the withdrawal of savings funds without 30 days' notice. Some who sought to withdraw their funds from checking accounts were dissuaded by officers from doing so. Other depositors added to their deposits. Cause of Run Ira L. Chorpening, chief national bank examiner, looked on as the depositors staged their run, prepared to close the bank if the tide ran against those who were struggling to keep the institution open. The refusal of a down town department store accept check on he bank was given by officers as the cause for the run on the Prudential.
Other banks, all white, wtre having trouble simultaneously. The Comptroller of the Currency close the bank was given by officers as Raymond L. Schreiner, president, was arrested and charged with larceny in connection with an alleged shortage of $59,700 in the accounts. The next day the Comptroller of the Currency closed the North Capitol Savings Bank, in which there were large number of colored depositors, and the International Exchange Bank because of insolvency. The Departmental Bank voluntarily close its doors. At the same time the run was being made against the Prudential there were runs against the Northeast Savings Bank and the Mount Vernon Savings Bank. A truckload of cash was delivered to the Northeast Savings Bank by the Treasury Department. The run on it by the similarity of with the North Capitol Savings Bank, which is located in the same neighborhood. The Mount Vernon Savings Bank last Saturday night offered $500 reward "for information leading to the arrest and conviction of the person or persons spreading damaging rumors concerning the Mount Vernon Savings Bank. Industrial Bank Open the Associated Negro Press deadline is reached the Industrial State Bank of which W. H. P. Brown is president, is open and doing business as usual.
4.
March 1, 1933
Evening Star
Washington, DC
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LOCAL BANKS ACT TO PROTECT FUNDS District National Limits Withdrawals-Others Invoke 60Day Clause on Savings. The District National Bank opened today on a 5 per cent withdrawal basis, following action taken by the directors early this morning, for the protection of depositors. President Joshua Evans, jr., announced. (The following notice was addressed today to the depositors in the bank: "Owing to heavy withdrawals of deposits during the last few days, and in order to safeguard all of our depositors, the board of directors has passed a resolution allowing depositors to withdraw 5 per cent of their balances in this bank at the close of business February 28, 1933, until further notice. All new deposits and new accounts opened March 1, 1933, and thereafter are subject to 100 per cent withdrawal at any time after actual realization cf funds by the bank." 60-Day Clause Invoked. The officials stressed the fact that all deposits made today and after this date can be withdrawn in full at any time. It was announced in the financial district that most of the local building and loan associations have invoked their time clauses on withdrawals, limiting the amount to $100. For larger amounts notice must be given in advance. Officials said the rule would be in force for the present. Several savings banks here invoked the 60-day clause on withdrawal of savings accounts. Some of these banks permit the withdrawal of 10 per cent up to $100. Above that amount, the 60day or two-month notice, is being required. Protective Measure. Among the local banks which have adopted this rule-the same plan which has been adopted extensively in other cities-are: United States Savings Bank, Chevy Chase Savings Bank, Security Savings & Commercial Bank, Park Savings Bank, Seventh Street Savings Bank, Washington Savings Bank, Anacostia Bank, Mount Vernon Savings Bank and the Northeast Savings Bank. (In an earlier edition of The Star the name of the Washington Mechanics' Savings Bank was included with those involking the 60-day clause. This was incorrect.) Officials said the action was taken merely as a protective measure, both for the banks and for the depósitors. The Commercial National Bank. which closed yesterday, has been placed in the hands of Robert C. Baldwin, a receiver of the office of the controller of the currency. Mr. Baldwin has taken over the receivership from J. L. Bailey, who took charge when the bank was closed. It was explained that Mr. Bailey will remain for a while in his capacity as a national Bank examiner to assist Mr. Baldwin. Has Considerable Experience. In the meantime, it was said at the Treasury Department, the new receiver probably will use a large part of the staff of the bank for his work. The new receiver. before Joining the office of the Controller of th è Currency, had considerable liquidating experience. Under the auspices of the Government he has been receiver for e bank at Lynn, Mass., since the latter part of 1931, and has been directing its liquidation. An official of the Treasury said in regard to Mr. Baldwin: "By reason of his ability in liquidating that bank, the Treasury Department saw fit to transfer him to the Commercial National Bank. We have every confidence that he will administer the affairs of the institution in a manner satisfactory to all concerned."
5.
April 13, 1933
The Washington Times
Washington, DC
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LIST OF THOSE TO BE OPENED DUE FIRST Some Must Be Reorganized, Others Face Liquidation, Cummings Indicates The condition and prospects of the 13 closed Washington banks will not be made public for another two or three days. With reports on most of the closed institutions before him, Walter J. Cummings, executive assistant to the Secretary of the Treasury, is moking a thorough study of them before making a statement. The first news expected to be available to anxious depositors will concern those banks which may be permitted to reopen on their present sites and under their present names. Account Data Issued Later news will give the names of those banks which will be allowed to reopen after reorganization and then the banks which will be required to liquidate will be named. Commercial depositors in the Commercial National Bank are receiving statements of their accounts from the receiver today. Only balances are being furnished, cancelled checks being retained. Later depositors in the savings fied to department appear for balancing will be noti- of their passbooks and holders of other evidence of indebtedness also will be summoned. Depositors To Meet Depositors of the Park Savings Bank will hold a meeting in the Mount Pleasant branch of the Public Library tonight. Members of a special investigating committee are to report results of attempts to glean information regarding the affairs of the bank. Nearly half the stock required for reopening of the Northeast Savings Bank has been subscribed, it was announced after a stockholders meeting last night. Beginning next week the bank will be open nightly from, 7 to 9 to receive subscriptions.
6.
April 15, 1933
The Washington Times
Washington, DC
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COOPER OFFERS BANK D AN A plan through which he hopes to recover the Commercial National Bank from the hands of a receiver is to be submitted to F. G. Awalt, acting Comptroller of the Currency, by Col. Wade H. Cooper, president of the closed bank. Colonel Cooper hopes to confer with Mr. Awalt today regarding details of the plan which has been approved by a depositors' committee. He refused to disclose the nature of the proposal which was formulated by a special group and submitted to the general committee yesterday. If the plan is approved by the comptroller, Colonel Cooper said it would be laid before the stockholders. He declined to say whether reorganization or the opening of a new bank is contemplated. More than 5,000 shares of stock. more than half the new stock needed, has been subscribed for the proposed reopening of the Northeast Savings Bank, George F. Hoover, conservator and one of the vice presidents of the institution, announced. Meantime, depositors and stockholders in the 13 banks which failed to reopen at the close of the banking holiday are waiting for information regarding the probable future of these institutions. Walter J. Cummings, executive assistant to the Secretary of the Treasury, is studying detailed reports on the condition of these banks and has assured Washingtonians that local money tied up in the banks will be released as soon as possible.
7.
May 1, 1933
Evening Star
Washington, DC
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DEPOSITORS LINE UP AT CLOSED BANKS North Capitol Savings and Departmental Pay Out $285,000. Depositors in two closed banks-the North Capitol Savings and the Departmental-lined up today in front of the institutions to receive payments totaling $285,000. At 6 a.m. the line started forming in front of the North Capitol street bank and before the doors opened at 9 o'clock 500 depositors were on hand. Today's payment marked the first release of funds since the bank closed last July. pay out to $125,000 Altogether. the approximately institution 6,000 will depositors. or about 1212 cents on the dollar. There was not quite so great a rush at the Departmental Bank, however, that institution having made an earlier payment of 30 per cent in February. The fact the bank will remain open until 9 p.m. tonight, tomorrow night and Wednesday night also prevented a rush, according to Receiver W. B. Allman. This second payment by the Departmental will aggregate $160,000, or 20 per cent of approved claims, and will be distributed to approximately 4,000 depositors. Receiver John S. Bryan of the North Capitol Street Savings Bank estimated his staff of paying tellers would hand out checks to more than 1,000 depositors today. The bank will close its doors at the usual hour of 3 p.m., but all those who are lucky enough to get inside the bank by that time will be paid off. One other insolvent Washington institution, the Bank of Brightwood, at Georgia and Colorado avenues, is expected to release its second payment within the next 30 days. Depositors will be notified through the newspapers as to the exact date, it was said at the Treasury Department. Further Progress Reported. Further progress was reported today by officials of the Northeast Savings Bank, at Eighth and H streets, in their efforts to sell 10.000 shares of common stock at $10 par value and raise sufficient new capital to reopen the institution. It was announced that 7,300 shares have now been subscribed as a result of the three-week intensive campaign which has been carried on among the officers, stockholders and depositors in the bank. While there has been a slowing up in the number of stock subscriptions, the officials are still very hopeful of getting the savings bank back on its feet. The bank's 15 directors have already put up $230,000 in cash to meet the emergency and have obligated themselves to contribute $110,000 more in connection with the reorganization plan. Much of this money was put up before the bank closed, in an effort to strengthen the bond account.
8.
May 6, 1933
The Washington Herald
Washington, DC
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PROGRESS SEEN INREOPENING OF DISTRICT BANKS
Stockholders and Depositors Are Backing Reorganization Plans Being Offered Them
By RICHARD HATTON While little information has been available regarding the closed banks of Washington and while the Treasury Department has not as yet made any public statement regarding the local situation there has not been lack. ing determined effort upon the part of officials of closed institutions to evolve plans for reopening and progress has been made charge of number of the institutions being liquidated. More activity has been in the affairs of receivership banks than in those of conservator banks but both classc of institutions are probably suffering from the lack of exhortation anterooms of the Treasury. Stockholders of the Franklin National Bank yesterday appeared to be enthusiastic over the reorganization plan just announced by that institution and there every for believing that, if the Treasury approves, the plan will ultimately be carried though successfully. MANY DEPOSITORS AGREE Yesterday the services of several directors of the Franklin as well as those of the officers were required to handle the long line of de ositors appearing to sign agreements which it is believed will permit the reopening of the bank. Many of these depositors were enthusiastic in their support of the outlined in letters previously sent out by the bank. Stockholders appeared to be perfectly willing to agree to waive 33 1-3 per cent of their deposits on March 14 leaving the balance available for regular transactions, according to the plan. For this 33 1-3 per cent waived all assets not accepted by the reorganized bank will trusteed and participating certificates for the amounts waived be issued to be paid off out of realization upon assets as fast as they become available. Stockholders are also purchasing stock in bank equal to 6 per cent of their deposits on March 14. WAIT TREASURY WORD
With stock stopped after 75 per cent of the required amount had been subscribed and with every assurance that total amount can easily be obtained, the Potomac Savings Bank is only awaiting some word from the Treasury to carry out its plan of reorganization. Meanwhile Receiver J. S. Bryan of the North Capitol Bank has paid out about $90,000 to depositors; the Northeast Savings Bank in charge of President George F Hoover has sold 7,600 of the 10,000 shares required for reorganization; pay ments have been made to depositors of the Bank of Bright wood by Claude H the Departmental Bank by Receiver W. B. Allman and the International Exchange Bank by Receiver T. Dinger and all of these institutions are working toward another percent age payment. The one big mystery among the receivership banks the Park Savings. As institution there no information available and even sensational rumor seems to have dried up.
9.
October 16, 1933
The Washington Times
Washington, DC
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7 ASSETS OF CLOSED BANKS TO BE POOLED 2 Highly Trained Receivers to Replace Conservators for Liquidation Assets of the seven banks involved in the formation of the Hamilton National Bank, which remained in hands of conservators after the merger, will be "pooled" in the interests of economy and ifficient liquidation, it was learned from an official source today. This report solves the riddle of the four conservators who are also on the Hamilton Bank staff and who have not been replaced as conservators because of the expense entailed. Serving Without Pay The four conservators who are now on the Hamilton Bank staff are Joshua Evans, jr, of the District National Bank: George F. Hoover, of the Northeast Savings Bank; R. A. Sisson, of the Washington Savings Bank. and E. L. Norris, of the Woodride-Langdon Bank. All are said to be serving without pay during the interim while Treasury officials are working on the new plan of liquidation. While final details have not been completed it is reported that all seven conservators will turn assets in their hands over to two highly trained receivers, who will have control of two separate groups of assets. The will be empowered to deal with the Reconstruction Finance Corporation and other finance agencies with a view to obtaining loans on liquid assets, and thus pay dividends on the remaining 50 per cent of depositors' claim against the old banks.
10.
November 8, 1933
Evening Star
Washington, DC
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BANK DEPOSITORS ARE REASSURED O'Connor Promises Orderly Marketing of Assets of Eight Institutions. Controller of the Currency J. F. T. O'Connor, in a formal statement today, announced that appointment of receivers for banks in this city "does not mean that the assets of such institutions will be thrown upon the market indiscriminately." The controller's statement was made in response to many requests concerning the policy to be carried out by the two receivers recently appointed to liquidate the assets of eight banks here. "In the first place," the controller pointed out, "it is obviously impossible to throw assets on the market at once. Moreover, even if this could be done, it would be poor policy, since the controller, acting in the capacity of trustee, has the duty of realizing as much as possible for creditors." In this connection. the controller pointed out that his position on this point was made clear in his speech to the American Bankers' Association last September 7. Minimum Expense Promised. Mr. O'Conner also called attention to the fact an orderly liquidation will be accomplished at a minimum expense. The average cost of liquidating national banks, he added, has been 3.9 per cent of book value and 6.65 per cent of actual collections. These percentages, he said, are much lower than found in "ordinary receiverships." Under the law it was necessary to appoint receivers to replace conservators, the controller pointed out, "in order that proper notice to creditors could be given and the trust finally liquidated. The controller in these cases," he continued, "has no option. He must appoint receivers." This interpretation of policy was designed particularly to apply to the operation of receiverships to which the controller recently appointed Cary Hardee of Florida and Norman R. Hamilton, Portsmouth, Va. Will Distribute Checks. Mr. Hardee, who was former Governor of Florida, is liquidating two banks here. the Federal American National Bank & Trust Co., which he has already taken over, and the Chevy Chase Savings Bank, of which he soon will assume charge. Mr. Hamilton yesterday took over the District National Bank and soon also will take charge of these institutions: Potomac Savings Bank, Washington Savings Bank, Northeast Savings Bank, Woodridge-Langdon Savings & Commercial Bank and the Seventh Street Savings Bank. Meantime, Controller O'Connor announced that Robert C. Baldwin, receiver of the Commercial National Bank, will start distribution of checks in payment of the second dividend to depositors next Monday. This will be for 30 per cent, and will be available to 34,000 depositors. When distribution of this 30 per cent is completed it will make a total of 50 per cent paid to the creditors of this bank in the aggregate amount of $3,000,000.
11.
May 1, 1934
The Washington Times
Washington, DC
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Mary Rasmussen, appellant vs. Norman R. Hamilton, as receiver of Northeast Savings Bank and J. F. T. O'Connor. Mandamus. 1. The depositor of a failed banking corporation doing business in the District of Columbia cannot compel the Comptroller of the Currency or his agent, the conservator or receiver, by mandamus proceedings, to permit an examination by such depositor of the books and records of the bank in custody of the Comptroller through his said agent. No. 6132. Decided April 30, 1934. Before Martin, Chief Justice, and Robb, Van Orsdel, Hitz and Groner, Associate Justices, on appeal from the Supreme Court of the District of Columbia. Affirmed. Jesse C. Duke, for the appellant. Leslie C. Garnett, U. S. Attorney; John W. Fihelly, Assistant U. S. Attorney; Charles E. Wainwright and Angus W. McLean, of Treasury, counsel for the appellees. Chief Justice Martin rendered the following opinon: An appeal from an order and decree dismissing a petition for mandamus. It appears that on March 4, 1933, the Northeast Savings Bank, a banking corporation then doing business in the District of Columbia, closed its doors, remaining closed after the President's proclamation of March 6, and never thereafter resumed its normal banking functions. On March 14, 1933, a conservator was appointed by the Comptroller of the Currency under the provisions of the bank conservation act of March 9, 1933. On November 15, 1933, a receiver was appointed for the bank and was substituted for the conservator as respondent in this case. On Septermer 21, 1933, the petitioner filed a petition for mandamus against the conservator
12.
June 17, 1934
Evening Star
Washington, DC
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Lean, who is general counsel for the receiver of five of the closed Washington banks which joined the Hamilton National Bank. Prior to entering the legal department of the controller's office, Mr. Wainwright was associated in the general practice of law with Charles V. Imlay. In the controller's office Mr. Wainwright represented the Government in collecting more than $400,000 from bonding companies liable on fidelity surety bonds of defaulting officers and employes of failed local banks. In his new position Mr. Wainwright will have a large part of the legal work regarding liquidation of the District National Bank, the Northeast Savings Bank, the Potomac Savings
13.
July 8, 1934
Evening Star
Washington, DC
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MANY TO BENEFIT BYLEVY ON BANKS Depositors Will Gain by 100 Pct. Assessment on Stockholders. Thousands of depositors are expecting to benefit from the 100 per cent assessment which Controller of the Currency O'Connor yesterday levied on 1,343 stockholders in five local banks. The exact number of these depositors was not available last night, but it is known to run into the thousands. None of these depositors has received more than 50 per cent dividend so far on the deposits which were tied up when the five banks failed to re-open at the close of the bank holiday. News that the controller had levied the assessment fell as a shock upon the stockholders. but it was greeted by depositors with hope that when the receivers collect all that is possible, there will be further dividends available for creditors. Amounts Involved Uncertain. There is no way of computing at this time how much the receivers will be able to collect from the stockholders, nor how much will be available for the depositors, nor when it will be available. Some of the banks are known to be in better condition than others, although up to the present time they have all paid the same dividend-50 per cent. The banks whose receivers now will proceed to collect the assessment where possible are: The Federal-American National Bank and Trust Co., in the hands of Receiver Cary A. Hardee, who already has advertised official notice to collect $2,000,000 from 642 stockholders. Four other banks in the hands of Norman R. Hamilton, who will attempt to collect as follows: District National Bank, $1,000,000 from 325 stockholders; Potomac Savings Bank, $140,000 from 68 stockholders: Northeast Savings Bank, $100,000 from 185 stockholders, and Seventh Street Savings Bank, $100,000 from 123 stockholders. The assessments aggregate $3.340.000 divided among a total of 1,343 stockholders. Threats of Bankruptcy. Announcement of the assessment was greeted yesterday in some quarters with threats of some stockholders to go into bankruptcy. Should they carry out this threat, it is understood the Government's receivers would have to take place alongside all other (Continued on Page 2, Column 8.)
14.
July 26, 1934
Evening Star
Washington, DC
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SAVINGS BANK PAYS SECOND DIVIDENDS Payments of 20 Per Cent, Amounting to More Than $68,000, Begun. The Washington Savings Bank today began payments of a second dividend amounting to 20 per cent. more than $68,000. The first person to call at the receiver's window in the old District National Bank, near Fourteenth and G streets. found she had made a mistake, because her money was in the Northeast Savings Bank, another insolvent institution which is in the hands of the same receiver. Norman R. Hamilton, who is liquidating five banks. The first depositor to get a check from the Washington Savings Bank was Mrs. Andrew Hughes, 624 Franklin street northeast. The window for payment of these checks will be open daily from 9 to 5 o'clock. according to G. L. Walden. manager of the Washington Savings unit of the joint receivership.
15.
August 14, 1934
The Washington Herald
Washington, DC
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Small Group Refuses Only Stipulated for Depositors for substantial Prospects tional payments to depositors in closed Washington banks five when stockbrightened yesterday its holders who have been assessed total of paid to practically all but ranged pay that amount Throughout the day Norman Hamilton, receiver for four of the defunct banks. involving 701 stockholders, and Carey Harreceiver for the Federaldee, American with 642 stockwere besieged by checkcallers and swamped with waving registered letters containing mittances Yesterday was the final day lowed stockholders to pay up to without bearing arrange pay an additional assessment of per cent interest on what they owe. Receivers Hamilton and Hardee said interest will be applied today accounts not paid by last to midnight. HARPER GROUP FIGHTS of the 1,430 assessed Only stockholders have signified intention of resisting payment, the stated. These 67. headed ceivers Col. Robert Harper. own shares of the District National 10,000 shares. The Bank's against them is ment stock having been purchased the $100 per share. torney Rover the holders have started litigation to avoid. delay. payment. or Except for this ceiver Hamilton said, all the of against sessment National shareholders District Hamilton expected to be paid. said: far have been advised, the other 258 District tional have paid will in full the amounts sessed against them. from response holders has been most surprisand gratifying. Today ing woman stockholder came check for $2,000 presented her full payment of the Every mail ment against her. has brought many letters containing checks for full settle. while other ment, numerous stockholders sent in their assessments and pledged themselves to send the mainder in installments on Sep. October 13 and No. tember vember GRATIFIED BY RESPONSE
Hamilton indicated that stock the Potomac Savings holders Northeast Savings Bank Seventh Street Savings Bank. and for which he also serving "taken care the have bulk their Potomac Savings been or Bank the 185 dered to pay holders of Northeast Savings Bank and stock must pay assessment was made similar 123 stockholders in the against Seventh Street Savings Bank. Receiver Hardee said he was "most agreeably surprised" by the prompt and substantial response the stock holders who are under orders assessments aggregating $2. On orders from Comptroller O'Connor, the Treasury Department. receivers are making drive to provide checks of special substantial size for all depositors before Christmas.
VISITS PRESIDENT
Jesse United States Ambassador France, President Roosevelt at the with White House yesterday
16.
October 22, 1934
Evening Star
Washington, DC
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C.BANKERS BUSY AS SESSION OPENS Main Committees Rushed. Convention Throng Pours Into Washington. BY EDWARD C. STONE. Every bank official in Washington who could be spared from his own institution during business hours, was attending the opening session of the sixtieth annual convention of the American Bankers' Association, which opened here today A good many had no chance to attend meetings, as they were chairmen or members of the important committees which ar. ranged for the big four-day gathering and were swamped with work as the financiers poured into Washington. H H. McKee. general convention chairman; Lanier P McLachlen. chairman of the Hotel Committee: Charles H. Doing chairman of registration: C H Pope. golf chairman and F H Siddons president of the District Bankers Association, which is entertaining the visitors, v all on hand early Their assistants were equally energetic. Robert Fleming second vice president of the national association had several important conferences with A. B A leaders. Several Washington bankers are members of this year's A B. A. com mittees. which are now completing their year's work. Mr Fleming an ex-officio member of the Executive Council Mr McKee is on the same council as representative of the District Bankers' Association George O. Vass is a member of the A B A Code Committee G. H Pope is one of the State vice presidents, representing the local association. Other Bankers Take Part. Victor B Deyber is member of the National Bank Division's Legislativ Committee. also member of the same division's Committee on Rela Sys Reserve Federal the with tions tem. as well as being one of the State vice presidents for the same section Francis G Addison, jr is active in the savings division being vice president for the District of Columbia. Lanier P McLachlen is a State vice president for the District in the State is bank division, while Ord Preston the representative of the District Bankers Association as State vice division. trust the president Local bankers expressed keen interest today in the optimistic statements made by President Francis M. Law just before the business sessions opened. He declares the time has come for bankers to show more confidence in the bus future The public cannot be forced to borrow money but the fact that plenty of money is available for all sound loans can be stressed more than it has been in recent months, he says. Law Praises U. S. Bonds. Mr Law gave it as his opinion that bankers generally feel that the securities of the United States Government "are the best estment on the face of the earth He declared today that bankers from other parts of the country who have arrived for the convention have reported that sentiment and business have improved markedly during the past month. Personally, he feels that private banking system can best develop the country's business interests and is opposed to any kind of Government-controlled central bank. He points with pride to the debt made dur been which have ing the past five years. Most of these is were speculative debts, he says. It up to the business men to decide whether they wish to use the vast amount of bank credit now available for expansion purposes. Mr Law made many other pre-convention obwere which servations, heartily ceived by Washington's financi leaders Both idle men and idle money must be put to work. he says. Bankers here found personal friends from all parts of the country in the lobbies of the hotels. It was like a big old home week today Baltz on Convention Board. E. C Baltz. secretary of the Perpetual Building Association. has been appointed a member of the Resolutions Committee for the convention of the United States Building and Loan League in New Orleans, October 24. 25 and 26. of the appointment came today from Philip Lieber of Shreveport, president of the league The committee is expected to deal with some of the more important phases of 1935 home-lending policy in the final resolutions presented to the convention will also have its say on matters of home taxation Mr Baltz is the director of the league in district 5, which includes the 13 States south of Pennsylvania and the Ohio River and east of the Mississippi. Credit Union Checks Exempt. The Treasury Department's ruling exempting Credit Union checks in the District of Columbia from taxation will increase dividends of the larger unions as much as 10 per cent in the opinion of Edgar Graham of Treasury Union No 262. Mr Graham also envisaged considerable savings to the smaller credit unions in the District where there now are 24, many which were sponsored by the District federation The exemption was made possible through the Co-operative Credit League. of which Mr Graham is president. He pointed out that the ruling affects only those unions organized under District of Columbia laws. Bank Starts Second Payment. Norman R. Hamilton. receiver for the Northeast Savings Bank. today started distribution of an additional 25 per cent dividend to 6.458 depositors, involving $263.448 This will bring the payments up to 75 per cent Notices were sent to depositors telling them when to appear at the bank at Eighth and H streets northeast to get their money, such action being necessary to prevent too much of jam at one time The Northeast Savings Bank is now a branch of the Hamilton National Bank daily carrying on 100 per cent banking operations. The bank is being kept open from 8:30 to p.m for the payment of the checks. Today's Trading on Exchange. The Washington Stock Exchange must have been overcome by the convention of the American Bankers' Association today Business was practically at standstill Trading was
17.
October 23, 1934
The Washington Times
Washington, DC
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Northeast Bank Payments Start Payment of an additional 25 per cent dividend to depositors of the Northeast Savings Bank started yesterday and will continue at the office of the receiver, Norman B. Hamilton. at Eighth and H Sts. N. E., daily between the hours of 8:30 a. m. and 5 p. m., until the disbursement is complete. This payment will bring the amount received by depositors to 75 per cent. About $263,000 is involved, affectiing approximately 6,458 depositors.
18.
October 30, 1934
The Washington Times
Washington, DC
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NEW RFC LOAN POLICY ASSISTS 7TH ST. BANK Closed Institution to Pay Another Dividend As Federal Aid Is Received By EUGENE A. KELLY Evidence of the liberalized policy of the Reconstruction Finance Corporation in making loans to closed banks was seen with the payment of an dividend to additional today depositors in the Seventh Street Savings Bank. Payment of this dividend, which amounts to $313,944, was made possible through the Steagall amendment which passed the last session of Congress and which was vigorously supported by Representative Clarence J. McLeod (R.) of Michigan, supported by The Washington Times. Today's payment, officials disclosed, is the result of recent negotiations between RFC officials and the bank's receiver, Norman R. Hamilton, following which the RFC reappraised the assets of the bank and decided more money could be loaned on the same collateral. Other Banks Aided It was disclosed further that the same liberalized policy was extended to the Washington Savings Bank, and the Northeast Savings Bank, the former recently declaring an additional 20 per cent dividend, making a total of 70 per cent, and the latter a 25 per cent payment, making a total of 75 per cent. The additional 30 per cent being paid today at the Seventh Street Savings Bank brings the dividend payment of that institution up to 80 per cent, a 50 per cent dividend having been made in September, 1933. Other Banks Apply Applications for more . loans have been put before RFC officials by other receivers of closed banks here. Officials would not say which of the banks, or how many, have asked that their present assets be reappraised in keeping with the new credit policy. Today's payments are being made in the old bank building, 1300 block Seventh St. N. W. Depositors are required to call in person and present the card sent to them by the receiver.
19.
April 19, 1935
Evening Star
Washington, DC
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2,500 DEPOSITORS FAIL TO CALL FOR DIVIDENDS Checks Are Waiting for Claimants at Northeast Savings Bank. About 2,500 dividend checks waiting for depositors at the old Northeast Savings Bank, Eighth and H streets northeast, have not yet been called for, it was announced today by Norman R. Hamilton, receiver. Unless depositors call for these checks by tomorrow noon the checks will be returned to the office of the receiver, at 1406 G street. Begin-
20.
July 3, 1935
Evening Star
Washington, DC
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BRICE CLAGETT NEW HAMILTON COUNSEL Succeeds Late Angus W. McLean in Receivership of Five Banks Here. Brice Clagett, attorney and former newspaper man, has been appointed counsel for Norman R. Hamilton, receiver of five insolvent banks of this city, succeeding the late Angus W. McLean. it was learned today. Mr. Clagett will participate in the extensive litigation already revolving around the banks in charge of Mr. Hamilton, particularly the District National Bank. He will have associated with him Charles E. Wainwright, attorney, formerly with the Treasury Department, who was associated with Mr. McLean. The banks concerned are the District National Bank, Potomac Savings Bank. Northeast Savings Bank, Seventh Street Savings Bank and Washington Savings Bank
21.
July 10, 1935
Evening Star
Washington, DC
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BANKS' RECEIVERS FILE SUIT TO GET $3,500,000 FUNDS Quasi-U. S. Agencies Are Defendants Based on Court Decision. PREFERENTIAL PAYMENT IS DECLARED ILLEGAL Actions Back Up Individual Depositors' Contention of Unjust Division. In an effort to recover receivers approxi- for mately $3,500,000. closed the banks today two Washington suit in District Supreme Court filed several quasi-governmental improperly against alleged to have of their agencies payment in full had been received deposits after the bank closed. suits must follow a recent that decision The by the Court of to Appeals depositors preferential payments illegal in the absence of of this a statute sort are expressly authorizing such payment. had already been filed by the individual Suits depositors to compel return of the money. Robpresent suit was filed by ComThe Baldwin on behalf of the Norman ert C. National Bank and District mercial Hamilton. receiver of the that the R. Bank. They ask to defendant National agencies be compelled paid 50 per cent of the money securireturn and to account for any them them that may have been given opened. ties when their accounts were All Depositors Paid Half. of only half the money been is sought. Return since all depositors have 50 per cent dividends. paid named as defendants include MerThose Inland Waterways Corp., the War the chants' Fleet Corp., Secretary of purArthur L. Flint. general WashDern. officer and chief of the Canal; chasing office of the Panama sucington Attorney General Cummings, custodian; as to the alien property Bureau cessor Creed F. Cox, chief of the Brown, Gen. Insular Affairs. and C. F. of disbursing agent of Philippine revenue. No early dividends can be expected depositors in the banks concerned, exby on account of the suits, it was plained. Meanwhile, Receiver Hamilton's the report today showed has asquarterly District National now includclosed estimated at $2,153,944.34. stock sets estimated $650,000 from recently ing an Stockholders collection lost assessments. a court fight to prevent of this assessment. official Not Listed report in Report. lists collections beThe stock assessment at nothing, relativefrom the court fight. The from cause small of amount already collected against ly $1,000,000 assessment the item the is listed under receiver shareholders as "cash collected by $367.shown trustee for owners," some and 690.61. held This, as however, includes other trust in hands funds. of the receiver and but controller Cash is listed at $553,642.37. on its bank still owes some more the Rethe loan of $817,287 from 50 construction original Finance Corp. out per institution paid cent This to its depositors in September, 1933. on the four other closed were Reports under his jurisdiction Hamilton. made banks public today by Receiver F. C. Loan Not Shown. R. Potomac Savings Bank, from per The another dividend of time 12 1/2 ago, which announced some C. to cent borrowed was from the R. F. loan has this possible, but the new out tomake not show on the report for the does Checks are being written has been day. dividend, but no date It is new yet for their distribution. before fixed will be some time they is likely The Potomac bank estiare ready. to have remaining already assets has shown at $871,595.79. It mated 50 per cent dividends. paid Washington Savings Bank, The has paid out total dividends of of $171,679.97. which 80 per cent. has estimated remaining assets Seventh Street Savings 80 Bank, The has paid out dividends of per which is shown to have remaining cent, listed at $473,140. assets Northeast Savings Bank, one which of The paid 85 per cent dividends, for closed has highest in the city $393,217.03. banks, the has remaining assets of
22.
November 28, 1936
Evening Star
Washington, DC
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2 CLOSED BANKS TO PAY $1,500,000 BEFORE CHRISTMAS 1,900 to Share in Dividends of District National and Northeast Savings. DATES FOR PAYMENT NOT SET DEFINITELY. 25 Per Cent and 10 Per Cent Sharing Is Expected to Bolster Yule Trade. Dividends of 25 and 10 per cent, respectively, will be paid before Christmas from the closed District National Bank and the closed Northeast Savings Bank, it was announced today by Receiver Justice S. Wardell, in charge of both institutions. The exact date when the dividends will be available to depositors has not been decided, but Receiver Warded estimated it would be between December 10 and December 15 in each case. The 25 per cent dividend from the District National Bank will be paid to about 12,000 depositors at the old bank, 1406 G street, and will be in the amount of $1,250,000. The 10 per cent dividend from the Northeast Savings Bank will go LO about 7,000 depositors in the amount of about $250,000. It will be paid at the old bank location, Eighth and H streets northeast, which is now operated as a branch of the Hamilton National Bank. The total payments of $1,500,000 probably will have a substantial effect on Christmas trade in the Capital. The District National Bank paid 50 per cent to its depositors in one dividend in September, 1933. The Northeast Savings Bank has paid 85 per cent in a series of different dividends, so that the additional 10 per cent will bring the total amount received by the depositors up to 95 per cent of the deposits at the time the bank closed in March, 1933. Payment Authoized. Payment of the dividends announced today has been officially authorized by Controller of the Currency J. F. T. O'Connor. In the case of the District Bank, depositors had been paid on the basis of the first 50 per cent dividend a total of $1,937,100.91, according to the last quarterly report of the receiver as of September, 1936. The 5 total amount on the books when the S bank closed, representing depositors accounts, was $4,841,414.78. e The amount paid out to secured depositors by this bank since its closing is $2,509,082.75. Stockholders have paid a total of $574,378.54 on their 100 per cent assessment against a total capital stock of $1,000,000. A battle in the courts brought by some stockholders to contest the right of the receiver to col. lect the assessment against bank stockholders was won by the receiver. I In the case of the Northeast Bank, i depositors have received $903,484.44. The unsecured deposits in this bank : when it suspended in March, 1933, totalled $1,148,596.28. Stockholders in this institution have paid in $42,100 on their stock as. sessment of $100,000. I