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WASHINGTON BANK CLOSED People's Savings Institution Placed in Hands of Receiver. Washington, Oct. 24.-The People's Savings bank of this city was closed today by the controller of the currency. An examination by a national bank examiner showed the institution to be in an insolvent condition. John W. Schofield has been appointed receiver. The bank is the second district instttution to be closed within a week.
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BANK CLOSES DOORS Local Institution Declared to Be Insolvent. RECEIVER TO TAKE CHARGE Belief Expressed That Depositors Will Lose Nothing. RESOURCES AND LIABILITIES Outline of the Condition-Officers Express Doubt Regarding Resumption of Business. By direction of the controller of the currency the People's Savings Bank of this city, which was chartered under the laws of West Virginia, has closed Its doors pending an investigation into its condition. The institution is declared to be insolvent. Mr. John W. Schofield was appointed receiver. The following statement was issued this morning from the office of the controller: The People's Savings Bank of Washington, D. C., has been closed by direction of the controller of the currency upon the report of National Bank Examiner Owen T. Reeves, jr., showing the institution to be in an insolvent condition. This bank was incorporated under the laws of West Virginia. It has been doing business in this city since June, 1905, and was organized by S. J. Masters to succeed The People's Bank, also organized by the same party and operated in this city under an Oklahoma charter. Until was of the failed Masters president recently bank, Mr. but was succeeded by Wilton Lambert, the present president. Like other banking institutions operating in Washington under charters derived from was under the of the June 1906. the vision the states, act of of the Congress it controller placed approved currency 25, super- by The following is a statement of the resources and liabilities of the bank as shown by its report of condition made to the controller at the close of business, September 4, 1906:
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Failure Said to Be Due to Loans to National Investment Company. OFFICIALS PLAN TO PAY DEPOSITS Claim That Bank Examiner Was Hasty, As Amount of Cash on Hand Was Large. The People's Savings Bank was closed this morning by direction of the Comptroller of the Currency upon the report of National Bank Examiner Owen L. Reeves, jr., showing the institution to be in an insolvent condition. The resources and liabilities, as shown by the last report of its condition, made to the Comptroller at the close of business September 4, 1906g were $210,369.56 each. John W. Schofield has been appointed receiver. May Reopen Its Doors. It was stated by Comptroller of the Currency Ridgely, soon after the bank had been closed. that he had already been in conference with some of the stockholders and directors in the bank with reference to a plan they had ale ready developed, of reopening the instl tution, and assuring immediate payment of depositors. This conference was held at the Comptroller's office, and aside from the foregoing nothing could be learned of the results. (the Comptroller coded that there were some strong financial men interested, which s good reason for the hope that th tution may be reopened The troller's statement added: Large Loans to One Conc "The trouble with the Peopl ings Bank, closed by the Nation Examiner this morning. is ma to very large loans made to Line National Investment Company, of which S. J. Masters is president. "Mr. Masters was formerly president of the People's Savings Bank, and these loans were made during his administration. They are an inheritance of the present management, who claim not to be to blame for them. "Some of the present directors of the bank have a movement on foot looking to the raising of enough additional funds to at once pay off all the depositors. This plan is now in consideration. and will probably be decided during the day. The People's Saving Bank has been running with a very strong reserve, and the receiver finds on hand, in cash or due from other banks, over 40 per cent of their deposit liabilities. Crowd at Bank Doors. Passersby at 610 Fourteenth street, the home of the bank were much surprised today to see a notice posted on the door stating that the Comptroller of the Treasury had taken charge. Soon after the usual hour for the bank open a stream of people, which steadily to increased as the day wore on. congregated in front of the building and discussed the matter, seeking information from everyone believed to be possessed of a scrap of news. The door of the bank was kept locked. but occasionally some official was allowed to enand when anyone emerged he was ter, eagerly begieged for information. The officers of the banak referred the majority of inquiries to the receiver. Bank Officials Claim Hasty Action. The officials of the bank were much wrought up over the action of the examiner. claiming that the step taken was entirely unnecessary. and that it was done hastily and without due consideration. They claim that at the close business last night they had a deposit of of $49,000 in actual cash, and that the entire deposits, which amou: $118,000, are amply secured The . ssets alone represent about 41 cent of the deposits. Of the der that over $40,000 are on they claim with by persons directly identified and that the amount of cash on hand bank, would be almost sufficient to pay claim off the entire balance also that the assets are absolutely They good and that no depositor stockholder will lose a penny. or The statement is made by an official last week $125 per share was that only for the control of the bank. and it offered is believed that of the entire asthat two notes aggregating $650 are all sets be considered doubtful. The total that could number of depositors is placed at 3,165 in amounts running from $1 to $50. and embracing a large number of the working classes, and in many cases the savings of children. The claim of the examiner that certain securities were not satisfactory is stated by Cashier Kinnear to be not founded, as one debtor towhom objection well was made, it is stated. has offered to deposit the full amount in cash within twenty-four hours. History of Bank. The People's Savings Bank, originally started by S. J. Masters, and located at Ninth and F streets in the Warder building, was removed to its present location in June, 1905, the building previously occupied by the American National Bank. The capital which had been previously placed at $60,000 was increased to $100,000, and a number of well-knownbusiness men became assoelated with the bank. In a printed statement, under date of May 3. last, showing the condition of the bank the deposits are given at $87.760.38 while the capital and surplus was
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SECOND BANK CLOSES DOORS WASHINGTON, D. C., Oct. 24.-The People's Savings bank of this city was closed today by order of the controller of the curerncy. The bank was insolvent. A receiver has been appointed. This bank is the second district institution to be closed within a week. The bank was a small one.
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PEOPLE'S BANK DOORS CLOSED Comptroller of the Currency Finds I Washington Institution in a Shaky Condition RECEIVER NOW IN CHARGE The Bank Has Been Doing Business For the Past Eleven Years. Washington, Oct 24.-The People's Savings bank of this city was closed to-day by order of the comptroller of the currency. An examination by a national bank examiner showed the institution to be in an insolvent condition. John W. Schofield has been appointed receiver. The bank was incorporated under the laws of West Virginia. It has been doing business in this city since June, 1905, and was organized to succeed the People's bank, operated in this city under an Oklahoma charter. It is the second district institution to be closed within a week. A statement on September 4 shows loans and discounts of $163,646; due from banks and bankers, $28,006; capital, $100,000; surplus, $8,094; and deposits, $97,325. The total assets and liabilities are given as $210,369.
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From Washington. Correspondence of the Alexandria Gazette.) Washington, Oct. 24. The Peoples Savings Bank, of Washington, D. C., was closed this morning by direction of the Comptroller of the Currency upon the report of National Bank Examiner Owen T. Reeves, jr., showing the institution to be in an insolvent condition. The bank was incorporated under the laws of West Virginia. It has been doing business in this city since June, 1905. The resources and liabilities as shown by its last report of condition made to the Comptroller at the close of business September 4, 1906, were $210,369.56 each. John W. Schofield has been appointed receiver. Introduced and wooed on the army transport Sheridan and married in Manila at the end of the voyage were the romantic events preceding the marriage of Mrs. John T. Fremont, of New York, to Capt. Frank T. Woodbury, U.S.A. And then the Sheridan was dashed to pieces on the rocks. Announcement of the wedding has just reached the United States. Mrs. Fremont is fifty and Capt. Woodbury is thirty. Mrs. Fremont, famous as a singer, had just been divorced in New York from Major John V. Fremont, court-martialed while on duty in the Philippines. The wedding was an event in Manila. Society talked for days about the affair. Capt. Woodbury comes from Pennsylvania. He became assistant surgeon in the army in 1901 and still serves in that department. Regret is felt by officials of the State Department at the outburst of antiAmerican feeling in Japan. That Japaa should blame all America for the acts of a few labor agitators in California who have started & movement for the restriction of Japanese immigration into this country, is considered unjust and it is believed that when the true situation is explained to the Japanese people there will be & decided revulsion of feeling in favor of the United States. When & high official of the State Department was asked this morning to account for the sudden spread of anci-American sentiment in Japan he declared without hesitation it was due to two things The agitation in California to prevent the employment of Japanese labor and the temporary restriction of attendance in the San Francisco schools to white pupils It is not expected in administration circles that the labor leaders of California will be successful in their endeavors to prevent the immigration of Japanese laborers into this country. Such a proposition will be strenuously opposed by the President and it is not believed that a bill for this purpose would ever receive the serious consideration of the Congress. The Cabinet changes announced by
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SAVINGS BANK CLOSED. The People's of Washington, D. C. by Comptroller of the Currency. Washington, Oct. 24.-The People's Savings bank of this city was closed today. by order of the comptroller of the currency An examination by a national bank examiner showed the institution to be in an insolvent condition. John W. Schofield has been appointed receiver, The bank is the second district institution to be closed within a week, A statement of conditions on Sept. 4 shows loans and discounts of $163,463 due from banks and bankers, $28,006: capital. $100,000; surplus. $8,064, and deposits, $97,326. The total assets and liabilities are given as $210,369. crew of 11 men get away in a life boat and were picked up and brought to New York on board the steamer Middietown. The Hastings is reported to have been
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At a meeting last night of the directors and stockholders of the Peoples Savings Bank, which was closed yesterday morning by order of the Comptroller of the Currency, it was decided to make arrangements to comply with every requirement of the comptroller in order to resume business. Mr. Ridgely and the directors of the bank had an extended conference late yesterday afternoon, at which Mr. Ridgely stated that the condition upon which the bank would be allowed to resume operation was to substitute cash for certain loans which the comptroller did not deem of sufficient value to protect the depositors of the bank. It was stated last night with every assurance of truth that the bank would re-open its doors for business this afternoon or to-morrow morning, and that there would be enough cash on hand to pay every depositor who wished to withdraw his account. It was shown at the meeting of the stockholders last night that though the bank had about $118,000 in deposits upon its books, there was $49,000 in cash upon which to draw. and that the personal accounts of the officers, directors and stockholders amounted to about $40,000. so that a large sum would not be needed to make the doubtful securities good and meet the requirements of the comptroller. Can Meet All Obligations. It was also shown that the main assets of the bank were sufficient to meet all obligations, and that by satisfying such depositors as might desire to withdraw, the funds of the bank could be put upon a solid and substantial basis. It was just a few minutes before 9 o'clock yesterday morning when a notice was posted on the front door of the bank that it had been closed by order* of the Comptroller of the Currency, pending an examination. Almost immediately a curious crowd gathered on Fourteenth street. and many inquiries were made as to the cause of the suspension. The Comptroller said his action had been based upon a report made to him by Bank Examiner Owen Is Reeves, jr., showing the institution to be insolvent. The Comptroller also said he had appointed John W. Schofield receiver. "This bank," said Comptroller Ridgely, "was incorporated under the laws of West Virginia. It has been doing business in this city since June, 1905: was organized by S. J. Masters to succeed the People's Bank, also organized by him and operated under an Oklahoma charter. Until recently, Mr. Masters was president of the bank, but was succeeded by Wilton J. Lambert, who is now president. Loans Cause Trouble. "The trouble with the Peoples Savings Bank." continued Mr. Ridgely, "is due mainly to large loans made to the National Investment Company, of which S. J. Masters is president. These loans were made during Mr. Mastersi administration. and are an inheritance of the present management, who claim not to be to blame for them. "The Peoples Savings Bank has been running with a strong reserve. and the
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Savings Bank Closed. Washington, Oct. 24.-The People's Savings bank of this city was closed by order of the comptroller of the currency. An examination by a national bank examiner showed the institution to be in an insolvent condition. John W. Schofield has been appointed receiver. The bank was incorporated under the laws of West Virginia. It is the second district institution to be closed within a week. A statement of condition on September 4 shows loans and discounts of $163,646; due from banks and bankers $28,006; capital $100,000; surplus $8064 and deposits $97,326. The total assets and liabilities are given as $210,369.
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SAVINGS BANK CLOSED Federal Authorities Swoop Down on the Institution. DEPOSITORS MAY GET THEIR CASH Loans Made to Another Company Wrecked the Bank-Former President Implicated in the FailureSecond One Within a Week. (By Associated Press.) WASHINGTON, D. C., Oct. 24.The People's Savings Bank of this city, was closed today by order of the comptroller of the currency, making the second bank to be closed within a week. An examination by a national bank examiner showed the institution to be in an insolvent condition. John W. Schofield has been appointed receiver. The bank was incorporated under the laws of West Virginia. A statement of condition on Sept. 4 shows loans and discounts of $163,646. due from banks and bankers. $28,006. capital, $100,000; surplus $8,064, and deposits $97,324. The comptroller states that the trouble with the bank was mainly due to large loans to the National Investment Company, of which S. J. Masters, a former president of the Peoples Bank. is president. Some of the directors have started a movement to raise additional funds to pay all depositors.
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WASHINGTON BANK CLOSED. Loans to National Investment Company by S. J. Masters Caused Trouble. Washington, Oct. 24.-The People's Savings Bank of this city was closed to-day by order of the Controller of the Currency. An examination by a national bank examiner showed the institution to be in an insolvent condition. John W. Schofield has been appointed receiver. The bank was incorporated under the laws of West Virginia. It has been doing business in this city since June, 1905, and was organized to succeed the People's Bank, operated in this city under an Oklahoma charter. Like other banking institutions operating in Washington under charters derived from the states, it was placed under the supervision of the Controller of the Currency by an act of Congress, and is the second District institution to be closed within a week. A statement of condition on September 4 shows loans and discounts of $163,646; due from banks and bankers, $28,006; capital, $100,000; surplus, $8,084, and deposits, $97,326. The total assets and liabilities are given as $210,369. The Controller of the Currency states that the trouble with the bank was mainly due to large loans to the National Investment Company, of which S. J. Masters, a former president of the People's Bank is president. These loans were made, the Controller says, during Masters's administration, and were inherited by the present management. Some of the directors have started a movement to raise additional funds to pay all depositors. The Controller says the bank has been running with a strong reserve. and that the receiver found in cash or due from other banks more than 40 per cent of the deposit liabilities.
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BANK MAY NOT OPEN PeoplesSavings Stockholders Divided on Question. WILL PAY ALL DEPOSITORS First Dividends will Be Paid Today, but It Will Be Two Months Before Business Is Resumed, if at All-Comptroller Says Affairs Seem to Be in Good Shape. That the Peoples Savings Bank will go out of business after the claims of the depositors have been met in full, within the next sixty days. is a possibility, according to President Lambert, of that institution. He gives as a reason for such possible action the fact that the stockholders are divided as to the advisability of reopening for business. At the meeting of the directors yesterday, arrangements were made to pay off the depositors and settle outstanding accounts. The place will remain temporarily in the hands of the receiver appointed by the Comptroller, and full advantage of the sixty days allowed by law will be taken before all liquidations are made. Beginning probably to-day, the depositors will be paid something like 50 per cent of their claims, and the balance later, as soon as the securities of the bank can be realized upon for such payment. The question of continuing business will be determined after the obligations have been met and the assets of the bank have been turned back to the stockholders. Has Plenty of Money. Last night President Lambert said the bank'sofficers had experienced no difficulty in raising money sufficient to meet its obligations. He said the act of the Comptroller fell upon them without warning and naturally found them in a position where they could not meet the demands of immediate liquidation. He said a little time would be required to arrange matters with the creditors, but that the securities and resources were ample, not only to meet the deposits, but to pay the stockholders in full, if it should be decided to go out of business. Mr. Lambert said that if the officials had been given twenty-four hours in which to do what the Comptroller now requires to be done, the cash security could have been obtained without the suspension of the bank. With reference to reopening for business, Mr. Lambert said the stockholders were divided in sentiment. He said there would be no trouble in doing it so far as raising th enecessary funds to operate the bank were concerned, but he thought the stockholders would not want to continue unless it was made clear there would be a profit in the undertaking Mr. Lambert said the stockholders might decide to liquidate and go out of business. Deputy Comptroller Kane said yesterday that if the plans outlined to the office should be carried out by the directorate the institution would not only be in condition to reopen for business, but would really be in better shape than it had been for the past six months. He said he could see no reason why the bank's affairs should not be turned back to the stockholders within a short period with the assets and good will uninjured by the suspension.
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# WILL PAY ALL DEPOSITORS. Comptroller Ridgely Orders People's Bank to Settle at Once. At a meeting of the directors of the People's Savings Bank, held yesterday afternoon, it devoleped that some of them seem to favor immediate liquidation of the affairs of the bank, while others strongly recommend reopening of the institution and resumption of business. It was reported that petitions had been circulated among depositors asking the directors to continue business and pledging not to withdraw their deposits from the bank. The assets of the bank as shown, according to the statement of the directors, are in much better shape than the Comptroller had hoped for, and the directors desire it to be understood that there is absolutely no cause for alarm; that depositors will be paid in full in a short while. It has been agreed upon by the directors and stockholders to hold a meeting this afternoon, when it will be finally decided whether there is to be an immediate liquidation or whether the bank will resume operations. Comptroller Ridgely, upon information received that no move had been made so far to comply with the conditions under which the bank would be turned over to its officers, has decided to instruct the receiver to wind up the affairs of the institution. It is expected that the Comptroller will at once direct the receiver to pay off the liabilities of the depositors with all possible dispatch.
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DEPOSITORS LOYAL TO PEOPLE'S BANK Many Would Stand by the Institution Should It Resume. DIRECTORS' MEETING TODAY Comptroller Says Dividends of 40 or 50 Per Cent Would Be Paid. Another meeting of the directors of the People's Savings Bank will be held this afternoon, at the office of W. F. Gude, at which various matters relating to the bank's affairs will be taken up. Receiver Schofield would not say on what date he would send out the checks for the first dividend to depositors, nor discuss any other phase of the bank's affairs. President Wilton J. Lambert said there Were a good many matters to be considered by the directors, and that among them the question of resuming business at the bank might be considered. "There would be no doubt about the bank continuing in business," he said, "If it were not for the blow that has been struck us; but it is a very serious matter to decide on opening after such a thing has happened." Depositors Would Remain. The general attitude of depositors will have considerable to do, it is expected, with the decision whether to resume business. Assurances have been given by many that they will continue their business with the bank if it is reopened. The Comptroller of the Currency said to a Times reporter this morning that a number of statements had appeared in the newspapers during the last few days relative to what had been or would be done in regard to the People's Savings Bank, which were more or less misleading to the creditors and the public. Will Pay Dividends. The Comptroller said that nothing would be done in regard to this bank which does not meet the approval of the Comptroller's office, and that any announcement in regard thereto will be made by him. If nothing is done toward the reorganization of the bank 1 by the directors, the receiver will pay 1 as soon as the claims are proved and the checks can be made, a divided of from 40 to 50 per cent from the cash I now on hand. As soon as the other assets can be realized upon, further dividends will be paid. The first condition in any plan adopted by the directors must be that the creditors shall be paid in full at ence Mr. Ridgely declined to express any opinion in regard to the possibility of the People's Bank beng reopened.
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PEOPLE'S BANK FATE UNSETTLED Directors Hold Session, But Refuse to Discuss Plans. ASSURANCES OF SUPPORT Many Depositors Say They Will Continue Their Patronage if Doors Are Reopened. No definite plans for the People's Savings Bank have yet been decided upon by the directors of that institution, who met yesterday afternoon in the offices of W. E. Gude. The meeting continued until late last night, and the directors declined to make any statement for publication concerning the bank's affairs. According to President Wilton J. Lambert and Receiver Schoefield, there are many matters that must be taken up before an adjustment of the bank's business can be made. It was said, however, that the question of resuming business might be considered. The directors decline to give their personal views of the situation. "There would be no doubt about the bank continuing business," said Mr. Lambert, "If it were not for the blow to its prestige. It is a serious matter to consider opening after such a thing has happened." Much deepnds on the attitude of the depositors, it is understood, whether the officials will decide to resume business. Assurance has been given by many that the depositors will continue their business with the bank if it is reopened.
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WILL PAY IN FULL. Washington, Nov. 24.-The comptroller of the currency today announced that the receiver of the People's Savmgs bank of this city, which was closed by the comptroller October 24 last, had been placed in possession of sufficient fund to pay all depositors and creditors in full.
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co-operation of the Union Savings Bank to pay the depositors dollar for dollar. "The new building of the Uffion Savings Bank was occupied by the bank for the first time this morning, "The Washington Exchange Bank. formerly the Washington Savings Bank, also moved its location from the building at the corner of Twelfth and G streets and was installed in its new quarters under the same roof with the Union Savings Bank. The building thus occupied was formerly the Fourteenth street front of the American Security and Trust Company building. Three Hundred Get Checks. Although the workmen have not entirely completed their work in the new building, everything was in good running order and business of both the Unic Savings Bank and the Washington Exchange Bank was conducted with the usual facility. and in addition to that, as rapidly as the receiver of the People's Savings Bank issued the checks they were presented and either cashed OF accounts opened with them. Probably 200 OF 300 depositors of the People's Seven ings Bank received their checks this morning,"
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People's Savings Bank Repaying Depositors Three Hundred People This Morning Received Their Money on Orders From Receiver Schofield-Institution Open Two Weeks. There were many happy hearts and co-operation of the Union Savings Bank smiling faces on Fourteenth street toto pay the depositors dollar for dollar. day. "The new building of the Uffion SavThe People's Savings Bank, 610 Fourings Bank was occupied by the bank for teenth street northwest, which was the first time this morning, closed several weeks ago, threw open "The Washington Exchange Bank. forits doors this morning and Receiver J. merly the Washington Savings Bank, also moved its location from the buildW. Schofield announced that every ceing at the corner of Twelfth and G posit liability would be paid dollar for streets and was installed in its new dollar. Out of the 2,000 or 3,000 deposiquarters under the same roof with the tors, about 300 appeared this morning, Union Savings Bank. The building thus presented their small banks and claims occupied was formerly the Fourteenth and were given checks which were cashstreet front of the American Security and Trust Company building. ed at the Union Savings Bank, 710 Fourteenth street. Three Hundred Get Checks. There the checks were cashed or 30Although the workmen have not encounts opened by the persons to whom tirely completed their work in the new they were issued. About 11 o'clock the building, everything was in good runcrowd of rejoicing depositors in the ning order and business of both the People's Bank was largest, and the emUnic Savings Bank and the Washingployes were kept busy examining the ton Exchange Bank was conducted with claims and issuing checks.
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tion increased to 13.23 per cent. On June 30, 1907, national bank notes represented 19.38 per cent of the stock of money in the country. In the District of Columbia. "As the result of liquidation of the Central National Bank of Washington, for consolidation with the National Bank of Washington, the number of associations in the District has been reduced to twelve, but there has been no change in the authorized capital stock by reason of the fact that the absorbing bank increased its capital to the extent of that of the Central National. The capital of these twelve associations is $5,402,000. "The authorized capital e the trust companies in the District was increased during the year to the extent of $1,000,000 by the organization of the United States Trust Company. Corporations of this character to the number of 5, with authorized capital of $7,200,000, are now in existence. There are also in operation in the District eleven banks, organized under State laws, and one savings bank. organized under the District Code. These concerns are generally known as savings banks, all paying interest on deposits and at an average rate of approximately 2% per cent. "There have been no failures nor suspensions of banks in the District during the year. The affairs of the Peoples Savings Bank, which institution failed in 1906, have been settled, creditors having received payment of their claims in full. The Aetna Banking and Trust Company, a Virginia concern, which failed in 1906, is still In charge of a receiver, through whom a dividend bas been paid to the extent of 20 per cent mainly from funds obtained from a Montana stockholder, who was largely interested Butte. in a branch of the bank at