Park Savings - Washington, DC

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: March 6, 1933
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini
Short Digest: 529c2d10

Response Measures

None

Description

No article describes a depositor run; Park Savings was suspended (suspension date given as March 6, 1933) and placed under conservator/receiver. Later receiver reports and long court settlements indicate the bank remained closed and in receivership for years. Causes point to bank-specific adverse information (mismanagement, missing deposits, expired charter).

Events (6)

1. March 6, 1933 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank suspension tied to muddled affairs, alleged misappropriation by an officer (Stunz kept separate records, failed to deposit funds), expired charter issues and general insolvency concerns leading to conservatorship/receiver actions.
Newspaper Excerpt: With the book value of assets at the date of suspension, March 6, 1933, placed at $2,556,383.68 ... the Park Savings
Source: newspapers

2. May 6, 1933 Other

Newspaper Excerpt: The one big mystery among the receivership banks the Park Savings. As institution there no information available ... even sensational rumor seems to have dried up.
Source: newspapers

3. June 13, 1933 Other

Newspaper Excerpt: The bank is now conducted by a conservator, and probably will be placed in receivership. ... Stunz... kept separate records, and that he failed to deposit money left with him.
Source: newspapers

4. June 22, 1933 Receivership

Newspaper Excerpt: Appointment of a receiver for the Park Savings Bank at the earliest possible moment was asked by members of the Citizens Forum of Columbia Heights ... to take the place of the closed Park Savings.
Source: newspapers

5. July 14, 1935 Other

Newspaper Excerpt: Since its suspension date, July 14, 1932, North Capitol Savings ... (context: receiver reports). Note: Park Savings receiver's report in 1935 values assets and cash collections; indicates prolonged receivership.
Source: newspapers

6. February 29, 1940 Other

Newspaper Excerpt: the bank directors paid over a sum of $500,000. Of this $150,000 was distributed to general creditors of the bank shortly before Christmas. ... notices to about 10,000 depositors ...
Source: newspapers

Newspaper Articles (6)

1. May 6, 1933 The Washington Herald Washington, DC

Article from The Washington Herald, May 6, 1933

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Article Text

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.

2. June 13, 1933 The Washington Times Washington, DC

Article from The Washington Times, June 13, 1933

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Article Text

PARK BANK DATA GIVEN ROVER (Continued from Local Page) the total was at least $3,000,000. Possibility of the organization of another "community bank" was suggested in talks from the floor. Kept Separate Records Another "leak" regarding the muddled affairs of the Park Savings is that Stunz, who personally handled the affairs of many of the bank's depositors, kept separate records. and that he failed to deposit money left with him. Passbooks of a number of customers were left in his possession. Of these the amounts left for deposit would be duly entered but the funds themselves would not be placed in the bank. It is said that a large part of such money was used to clear off "paper" to which bank examiners objected. The unofficial records Stunz kept for his own convenience in a special drawer in his desk would be concealed in a bank vault at the appearance of the examiners, it is claimed. Committee Appointed A permanent committee of stockholders consisting of Col. Robert H. Young, John C. Drake, S. H. Hines, William J. Neale, Lyle Cooke and J. W. Thompson, was named by the Rev. Dr. George F. Dudley, pastor of the St. Stephen and the Incarnation Episcopal Cnurch, who presided. This committee will continue the investigation and seek settlement of the bank's affairs. The bank is now conducted by a conservator, and probably will be placed in receivership. The organization committee of the proposed Hamilton National Bank, encouraged by the results of the stock subscription campaign in the past week, has decided to proceed with details for the official set-up of the organization. Assets To Be Studied A committee has been named to pass on the assets of the seven local restricted institutions whose "prime" assets are to be merged in the new $1,250,000 bank and another group will decide which of the 10 buildings of the banks concerned in the merger will be used as branches for the new institution.

3. June 22, 1933 The Washington Times Washington, DC

Article from The Washington Times, June 22, 1933

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Article Text

BANK RECEIVER FORUM'S S PLEA Appointment of a receiver for the Park Savings Bank "at the earliest possible moment" was asked by members of the Citizens Forum of Columbia Heights, meeting in one Powell Junior High School last night. The motion also requests the establishment of a branch in the community by "any sound banking institution," to take the place of the closed Park Savings. In taking the action the organization regarded the problem as a "community affair," and no effort was made to determine how many of those voting were depositors of the bank, one of the forum's officials stated today. The action was based on a report made by delegates who attended a meeting held by a committee headed by Frank J. Sobotka 10 days ago.

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

Article from The Washington Times, July 16, 1935

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Article Text

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

5. May 31, 1939 Evening Star Washington, DC

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Article Text

Bank (Continued From First Page.) duce the directors' responsibility approximately by one-half. $2,000,000 Suit Pending. Pending also in the courts is a suit filed by creditors against the directors for $2,000,000 for negligence in the Park case. If the settlement of $500,000 should go through, there were indications today that this suit might be dropped. The Park Savings case is one of the most complicated growing out of the Nation-wide bank failures in 1933. It has been fought through the courts for years. A group of depositors launched the fight, represented by E. Hilton Jackson and William E. Richardson, who have been conferring with other counsel also during the negotiations over the new settlement. Receiver Moran is represented by J. Bruce Kremer. Counsel for the defendant directors include Mr. Sherier and H. Winship Wheatley, for the group; C. K. Aiello, for the George W. White estate; Harry A. L. Barker for the estate of the late A. F. Jorss, former president of the bank, and Julian C. Hammack, attorney for the estate of the late C. Francis Jenkins, eminent inventor, who was a director. Accounts Are Complicated. At the office of the receiver there were no definite indications as to how much of a dividend might be available for depositors should the $500,000 offer be received. The accounts are complicated. There are two groups of depositors. In the first group there are those who would benefit by the court decision on directors' liability. They had money in the bank when the charter expired in 1929. In the second place there are depositors who put their money in the bank after the charter expired in

6. February 29, 1940 Evening Star Washington, DC

Article from Evening Star, February 29, 1940

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Article Text

Park Savings (Continued From First Page.) which a depositors' committee and counsel for the bank's receiver finally joined hands, the bank directors paid over a sum of $500,000. Of this $150,000 was distributed to general creditors of the bank shortly before Christmas. Mr. Wilkes, in his report as special master, recommended to the court the list of depositors who would benefit under the special payment. It includes persons who had money in the bank on August 30, 1929, and who did not withdraw all their funds between that date and the time the bank closed in March, 1933. In his report Mr. Wilkes told the court in detail the so-called "low-balance" of each depositor who will be in line to receive a dividend on his account. How much each depositor will receive and when he will receive it depends upon whether any objections are raised to approval of a report by the court. Notices to Depositors. A motion to confirm the report was filed by E. Hilton Jackson and William E. Richardson, counsel for the depositors. Justice Letts then fixed the date for hearing any exceptions which may be filed. The clerk of the court was ordered to mail to about 10,000 depositors notices that the report is now before the court. The notices were prepared by the special master from his report. Each depositor is given 10 days from the receipt of his notice to file an exception. Unless there are further delays, it is considered likely the money may be paid out by the disbursing agent, John F. Moran, this spring, probably by the middle of May. The amount of money available for distribution depends on the court's approval of expenses in the case. Expenses are expected to total about $130,000, leaving approximately $220,000 to go to depositors in the special group. Among the expenses recommended by the special master to the court was an allowance of a fee of $75,000, to Mr. Jackson and Mr. Richardson, including $37,500 each. In his report the special master