2118. Park Savings Bank (Washington, DC)

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: August 30, 1929
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini
Short Digest: 0df4e530

Response Measures

None

Description

The articles describe Park Savings Bank as having its charter expire on August 30, 1929 and thereafter being carried on by directors as liquidating trustees. A receiver (John F. Moran) was appointed and lengthy receivership litigation and settlement followed through the 1930s; there is no description of a depositor run in the provided articles. Therefore this is a suspension/closure with receivership. Bank type is not clearly indicated from the name/articles.

Events (3)

1. August 30, 1929 Suspension

Cause: Voluntary Liquidation
Cause Details: Bank charter expired on August 30, 1929; directors continued business thereafter as liquidating trustees and institution was treated as a closed/insolvent entity subject to liquidation and receivership.
Newspaper Excerpt: the bank's charter expired August, 1929.
Source: newspapers

2. August 12, 1933 Receivership

Newspaper Excerpt: Denying that the Treasury receiver ... the Depositors' Committee filed ... challenge validity of Moran appointment. John F. Moran, the Treasury receiver, ... was appointed receiver of the defunct Park Savings Bank.
Source: newspapers

3. October 19, 1939 Other

Newspaper Excerpt: Payment of $793,000 To Park Savings Bank Depositors Assured ... directors turn over $500,000 to settle claims against them and receivership has on hand about $293,000 for distribution.
Source: newspapers

Newspaper Articles (9)

1. August 12, 1933 Evening Star Washington, DC

Article from Evening Star, August 12, 1933

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Article Text

DEPOSITORS' REPLY IN PARK BANK SUIT FILED WITH COURT Committee Denies Treasury Receiver Has Legal Right to Control Assets. CHALLENGE VALIDITY OF MORAN APPOINTMENT Efforts Made to Collect $1,500,000 Shortage From Directors and Stockholders. Denying that the Treasury receiver right F. Moran. had any legal 1 John the assets of the defunct control Bank, the Depositors Court... Savings yesterday filed in the Supreme a tee Court late of the District of Columbia reply to the receiver's answer. Depositors' Committee asked heard that The raised in their reply be sevwith the other issues in The now before the take along the issues actions right court. the to eral receiver has no the deTreasury to the remaining assets, bank, title reply states, because the of Alapositors the provisions of the law under bama under which it was incorporated, lost its charter as a corporation Bank had August 30, 1929. The Park was on that date, the reply states, divested on 'automatically and completely control title. ownership and of the and assets the all property the it thereto- and over owned and possessed by thereof fore ownership and possession directitle, became then vested in the then trustees." tors of said institution as liquidating Insolvency Denied. The reply further explained that that the controller under the law must find before certain conditions must exist Under he could appoint a receiver. the controller could only ap- for a receiver, the reply and to the same the the the point law reason says. expense of provided in the laws as in respect to on The plaintiffs say banks. United are States further national Bank this point that the Park Savings and corporation was not insolvent of the there "as was no findings or decision said controller of the currency that Park Savings Bank. as a corpora- the the was then insolvent, and that said attempted tion. appointment of the said Moran as receiver. as alleged in answer. was invalid and illegal." The plaintiffs further make the included point the bank could not be laws that 713 of the code of of Columbia as under the section District have because office of corporation, it did not an of a banking house in the District Columbia of when Moran was appointed. corporation itself had expired code The District of in gives the since 1929. this the point controller Columbia right on appoint a receiver for corporations of any to by virtue of the laws "organized States of this Union, and located having of the office or banking house where within an the District of Columbia deposits or savings are received. Seek to Collect Shortage Alabama law, which the efforts deThe are invoking in their and repositors the Treasury receiver to oust him with a receiver to be appoint- the place the court, provides for whose ed liquidation by of corporations charters have expired. such cases, the law declares, full the In shall be trustees with cordirectors to settle the affairs of the law power Furthermore, the same poration. these directors in their and capacity sevmakes liquidating trustees jointly stockas liable to its creditors and erally to the extent of the property holders which may come into their hands." With these weapons, the Depositors' Joseph which is headed by by E. Committee Thompson and represented RichW. Jackson and William E. to Hilton as counsel. is endeavoring stockardson from the directors and more holders collect the entire amount of the in $1,500,000 shortage discovered committed than bank after Robert Stunz suicide the on March 14. The depositors liquidatgoing after the directors as directors are ing trustees and also after the and stockholders as co-partners.

2. February 2, 1934 Evening Star Washington, DC

Article from Evening Star, February 2, 1934

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SURETY COMPANY WILL PAY $100,000 TO PARK SAVINGS Order Against Underwriters Based on Defalcations Laid to McNeil. FURTHER FIGHT SEEN ON $50,000 PAYMENT Money Will Go Into Eventually General Fund to Be Paid to Bank's Depositors. Park Based entirely due on to losses the McNeil, to alleged the for- deSavings Bank of Benedict M. a claim for falcations cashier of the the bank. American been Sur- apmer 000 against York has Court by to be ety Co. of District paid charge proved $100,000 and was expected New Supreme placed in John the by in check The today. funds will of the be receiver, full bank F. Moran in of $100.0 bond is out of the in This so-called primary taken the Surety Co., the Adelity on 1923. American which and guaranteed employes of the bank. of officers Will Go to Depositors. the general of the depositors This money bank goes into ultimately on a ratable to be status assets distributed Owing to to however. the complex there this is dis- no basis. when made of the of bank, dividends ediating can be by Justribution means of action was taken in motions The court W O'Donoghue so-called petition "order tice Daniel He signed This authorcourt promise claims the court the $100.to computhority of to accept but left under ized the receiver surety componention on from the of the same 000 the question written by known of company excess another open bond for the bond same in the sum is understood the reto be to collect is to go $50.000 The disputing surety company the this right of to court. $50.000 ceivers and the matter "Without Prejudice." Payment in his order $100, de"shall Justice o Donoghue , acceptance prejudice of the to the to receiver clared that be without of said bank c laim, of all rights on 000 right of of legal the action. pursue in a behalf court of institute and etent enforce strisdiction said excess collect bond under said comp bank under the effort the to receiver caused will to this It excess is in bond for that the S. losses Stunz, former killed claim payment by Robert bank, who the bank the bank dent of the when reopen vice presider in March license to on the himself receive a cashier. the failed McNeil. to the alleged former defalcations is under inbasis of those was recovered, three other to per- vio$100,000 with conspiracy dictment along with He was indicted 12 late the 1933, 5,000. sons. charged penal code. and appearing July by Mcthe June made 28. bond of in defalcation in petihe The charles in detail claims filed in the tion to the bank's Neil are compromise receivers. court by Separate Claims McNeil Seven out that employe and The petition defaulter sets while cashier an of charge the said of pointed was a said servator in the petition. acting as The consette out surety in comfor pany losses and the fault dishonest bank the bank. made it claim is because to the acts of such of Mc- depubdisclosed were Neil Among these for claims. the first mostly time, $100.000. Actitious licly today separate claims. than seven totalic cluded more Act following in counts in and amobank accounts. claims names of the resulting A. These the amounts George Smith to the Robert P. $4,000: persons 436.15 E. cash losses $44.43 Hubschman $3,500; Mary $19,300; Williams, L. Albert Harland, control" far were Mrs. F $737.50gainst savings These was claims so $98,003.95. Mann. Charges another claim for totaled $26,030. as losses sustained Against Loan. remaining be "can Charged $2,000 of charged losses. loan "The the petition. was and said t cember Fanny 26. 1928 McNeil be agains dated Decem Alexander $7,500. to indorsed in the by amount bond which and was signed $50.being The primary was written bond for dispute today excess a 1931 paid in 1928. but which the there and signed still now in being preparedor 000 over drawn up of fact are claim for this that was Stipulations Stepared to present the the defense related excess bonderstood surety company of the corIt was the terminal ation Savings Bank. Park raised by alleged Park tee of the court to the life of committee with a equity comSavings the pora The Depositors Bank is involving in both claim that exin plicated suits case based Bank on and charter that the as the Park August, was and law, Savings 1929. operated thereafter Depositors pired instiguership. institution of the it directors attempts for part The contenti which of $2,250. Justice Court. litigation total attributable a establish committee. losses the largely of liability Jesse more c. to than Adkins Stunz, in is Dis- now is before Supreme company Bruce Kremer for handled in trict The surety by ingston, J. counsel comproby action bond and being receiver George claim B. The Sprinction for controller the exces first of this the the mising the and suing the crested in E currency F. G. by Awalt was approwho was and Charles case wright.

3. November 9, 1934 The Washington Times Washington, DC

Article from The Washington Times, November 9, 1934

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# Loan to Park Savings # Assailed in Suit Seeking to have loans made by the Reconstruction Finance Corporation to the Park Savings Bank declared void and to force the return of securities pledged as collateral for the loans, Cora G. Windmuller, 3100 block Eighteenth St. N. W., a depositor at the bank, entered suit today in District Supreme Court. Through Attorneys E. Hilton Jackson and William E. Richardson, the plaintiff alleged that the bank's charter expired in August, 1929, and was not renewed. The directors of the bank, the suit declared, became liquidating trustees when the institution continued to carry on a banking business. Under this situation the suit charged that the RFC organic law prohibited it from making loans to the receiver of the bank. The suit further alleged that the RFC accepted $550,515 of the bank's securities from John F. Moran, the receiver. It was pointed out that in a previous case the receiver indicated he would proceed against the RFC, but since that time he has authorized payments of interest on the RFC loans. The court was asked to compel the RFC to make an accounting of proceeds of all collections from the receiver and to declare transfer of the bank's securities void and illegal.

4. November 10, 1934 The Washington Daily News Washington, DC

Article from The Washington Daily News, November 10, 1934

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RFC Loans Invalid, Suit Here Contends District Supreme Court is petitioned to declare invalid loans made by the Reconstruction Finance Corporation to the Park Savings Bank and compel the return of securities pledged as collateral for the loans. The suit was filed by Cora G. Windmuller, 3156 18th-st nw, a depositor at the bank. She claims that the bank's charter expired in 1929 and that the directors of the bank thereafter became liquidating trustees. It is alleged that the RFC organic law prohibited that agency from making a loan to the bank under the conditions which then existed. The plaintiff points out that loans were made to John F. Moran, bank receiver, who pledged $550,515 in securities of the bank as collateral. The court was asked to compel the RFC to make an accounting of all collections from the receiver and to declare the transfer of securities by the bank invalid.

5. October 14, 1935 The Washington Times Washington, DC

Article from The Washington Times, October 14, 1935

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HARPER LOSES BANK SUIT Sopreme Coort decisions in four Washington bank cases to day placed depositors one step nearer to receiving additional money from the coffers of District financial institutions tied hp since the 1932 bank holiday. The court denied a petition of Robert N. Harper for a review of a decision of the District Court of Appeals which held that stockholders of the North Capitol Savings Bank were liable for a 100per cent stock assessment made by the Comptroller General. The bank was organized under the laws of Arizona. Mr. Harper was sued by John F. Moran, receiver of the bank for a $1,500 stock assessment. Directors Lose Fight The court likewise denied the petition of Joseph W. Thompson and John F. Moran, receiver of the Park Savings Bank, for a review of the District Court of Appeals decision holding that stockholders and the receivers could not sue directors of the bank because it continued business after the bank's Alabama charter expired August, 1929. Another angle of the bank situation was finally decided when the court denied the petition of Cary A. Hardee, receiver of the Federal American National Bank and Trust Company, for review of the decision holding him obligated to pay $2,273 unpaid taxes to the American Security and Trust Company. The case grew out of a foreclosure of a mortgage on an apartment house in the 2900 block of Fourteenth Street N. W.

6. July 25, 1939 Evening Star Washington, DC

Article from Evening Star, July 25, 1939

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Final Decision Park Savings Reached Justice on Compromise R. day, in orders ing rective. of John was the bank, to was the on sitting of the Police Court on the The fees, charges for held of for suits negligence director: to and other $50,000, cover have been The the receiver's $500,000 by Bond for $350,000. Jennings nisi and Bailey E. Hilmade ton William of group order before Suit Mr. of the in of 20 the during of The period receiver also the direcfor tors rating the had bank in 1929. TWO groups the that those bank in the 1929 money the bank group from benefits for runthe the ning after was The incourt of the that suits the and against yet been the and heard Court were carbeginning. the that if prospect years for some directs in that claim claim 100 the be Moran, for "the creditors as ally and their interWilkes as Wilkes be cial and to to the or itors Park Bank 30, 1929. securities the and bank in dethat the of subsemade to the for regarded payment. ining balance 30, August 1929, The speon cial the to be paid Richardis son to tion port to due W. Thompson, c.c. Hines, C. William Drake, or of or any it. member members

7. August 9, 1939 Evening Star Washington, DC

Article from Evening Star, August 9, 1939

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Park Savings Bank Creditors' Claims Heard James C. Wilkes, special master in the Park Savings Bank case, cleared up many details at a hearing on creditors' claims today and planned to resume hearings at 10 a.m. Tuesday in room 202 of the Police Court Building. The session will be devoted principally to consideration of costs and counsel fees. In the meantime Mr. Wilkes has under consideration the appointment of an auditor to prepare records of the bank, upon the basis of which there will be made a distribution of some of the funds to depositors who had money in the bank in 1929. The funds to be distributed were realized as a result of a long fight in the courts over the closed institution. The directors have pledged to pay $500,000 by October. The special master heard claims by several creditors this morning, and there was a general discussion as to future procedure in the case. Representing the depositors were William E. Richardson and E. Hilton Jackson. counsel. The receiver, John F. Moran, and Counsel Herbert M. Bingham assisted the special master in looking into the claims of depositora.

8. August 18, 1939 Evening Star Washington, DC

Article from Evening Star, August 18, 1939

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Park Savings Bank Depositors' Counsel Ask k8$ Fee Special Master Told Of Many Legal Questions In 6-Year Litigation For their services extending over about six years of litigation in one of the most complicated closed bank cases in history, William E. Richardson and E. Hilton Jackson, counsel for the Depositors' Committee of Park Savings Bank. have submitted claim for a fee of $87,500 out of funds recovered from directors of the bank. The claim has been submitted in formal hearings before James C. Whikes. special master appointed by District Court to hear claims and submit recommendations later to the court on disposition of certain funds. The counsel fee of $87,500 is onefourth of the fund of $350,000. which was realized as a result of litigation from directors of the bank for the benefit of those depositors who had money in the bank when its charter expired in 1929. Another $150,000 Realized. A total of $500,000 was realized from directors, $350,000 of which goes to the 1929 depositors, while the remaining $150,000 will be distributed generally to all creditors, including the 1929 depositors. Claim of the depositors' counsel to the fee will be supported by expert testimony before Special Master Wilkes in hearings to be resumed Tuesday morning in Police Court Building. Mr. Richardson in his testimony before Mr. Wilkes pointed out that about 40 legal questions had to be considered and disposed of during the protracted litigation. Many Appeals Taken. Mr. Richardson and Mr. Jackson had fought the case in court since 1933. and were joined later by the receiver and his counsel in some of the litigation. Two appeals were made to the Court of Appeals, there were two petitions for rehearings of the Court of Appeals findings, and three petitions for writs of certiorari to the Supreme Court of the United States. In addition the depositors' counsel fought a case against the Reconstruction Finance Corporation involving some trust funds, still pending in the Court of Appeals. Four individual suits for depositors were filed. asserting liability for deposits after the charter expired. Counsel for the receiver, John F. Moran, who participated in some litigation with counsel for depositors, and who filed suits against directors for alleged negligence and for restoration of dividends. will present their fee claim to the special master after other claims have been considered. The directors' payment of $500,000 is to settle all litigation. The special master still has under consideration the appointment of an auditor to go over accounts of the bank for the purpose of certifying the amounts to be paid to 1929 depositors.

9. October 19, 1939 Evening Star Washington, DC

Article from Evening Star, October 19, 1939

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Payment of $793,000 To Park Savings Bank Depositors Assured Directors Turn Over $500,000 to Settle Claims Against Them Payment of more than $700,000 to 18,000 depositors of the closed Park Savings Bank before January 1 apparently was assured today when litigation in this complicated defunct institution was wound up in District Court. More than half a dozen different suits of various kinds against the directors and stockholders of this institution were dismissed by Justice F. Dickinson Letts after payment of $500,000 by the directors in settlement of all claims against them. In addition to this half million dollars turned over today by the directors the receivership of the bank has on hand, according to the last report, about $293.000, which will be available for distribution, making a total of $793,000 altogether. Two Checks Presented. The directors paid their $500,000 in two different checks, which will be distributed in two different ways. The first check was for $350,000. a special fund which is to be distributed to depositors in the bank prior to the time the charter expired in August 30, 1929. This check was turned over to John F. Moran in his capacity as disbursing agent under authority of the court. How many depositors this $350,000 fund will go to has not yet been determined. The accounting firm of Beese & Spicer is working on the records to determine who these depositors are and how much they shall receive, under a previous decision of District Court. It will probably be about (See BANK, Page A-14.)