2130. Potomac Savings (Washington, DC)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 1, 1933*
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini
Short Digest: b7ccd4b4

Response Measures

None

Description

Potomac Savings was one of several Washington savings banks closed in 1933, placed in receivership and its best assets taken into the Hamilton National Bank. There is no description of a depositor run in the articles; instead the bank was closed (suspended) in March 1933, placed in receivership, stockholders were assessed, and receivers later paid dividends to depositors — the institution did not resume normal banking operations. Cause classified as government action because receivers were appointed by the Controller and the bank was closed by authorities. OCR errors in some snippets preserved; dates taken from article references (suspended March 1933; receivership and liquidation activity through 1936).

Events (10)

1. January 1, 1933* Receivership

Newspaper Excerpt: Receivers Norman R. Hamilton and Cary A. Hardee were named to handle assets and liquidate the closed banks; Potomac Savings listed among the banks in receivership.
Source: newspapers

2. March 1, 1933* Suspension

Cause: Government Action
Cause Details: Bank was closed in March 1933 and placed in receivership; Controller appointed receivers and assets were transferred/managed by receivers (government action).
Newspaper Excerpt: Liabilities suspension bank in the March, date 1933.
Source: newspapers

3. May 18, 1933 Other

Newspaper Excerpt: The five participating banks at present are the Federal-American National Bank and Trust Company, the District National, the Potomac Savings, Washington Savings and the Northeast Savings. The Woodridge-Langdon Savings and Commercial Bank also is expected to join ... the new bank would be functioning early in June. 100,000 Depositors The new bank, it was stated, will start business with entirely liquid assets totalling $11,131,211 and that it will have 100,000 depositors. Member of Reserve It will be a member of the Federal Reserve system and will conduct a general banking business ... All banks becoming a part of the new institution will make available 50 per cent of their deposits. 1 The capitalization of the new institution probably will be changed as other banks enter the merger. The five participating banks at present are ... the Potomac Savings ... (OCR original excerpt).
Source: newspapers

4. November 1, 1933 Other

Newspaper Excerpt: The conservators of the member banks of the Hamilton, who are succeeded by receivers are as follows: ... Potomac Savings, George W. Offutt; ... The policy to be followed by these two receivers in handling the remaining assets of eight banks was briefly put in the controller's statement when he said the receivers 'will devote their efforts toward liquidating the remaining assets of each of the eight District of Columbia banks.'
Source: newspapers

5. March 27, 1934 Other

Newspaper Excerpt: Stockholders in four of the closed 'State' banks which became part of the seven-bank combination that merged into the Hamilton National Bank may have to pay their assessments within three weeks ... Banks Involved Banks involved are: Potomac Savings, Northeast Savings, Washington Savings and Seventh Street Savings.
Source: newspapers

6. July 7, 1934 Other

Newspaper Excerpt: The receivers of the five banks, the best assets of all of which were taken over by the Hamilton National Bank ... levied 100 per cent assessments against shareholders ... Potomac Savings ... Assessment $140,000.
Source: newspapers

7. October 15, 1934 Other

Newspaper Excerpt: BANK ASSESSMENT INSTALLMENTS PAID ... Potomac Savings $140,000; Northeast Savings $100,000 ... Receivers Norman A. Hamilton and Cary A. Hardee were accepting payments ...
Source: newspapers

8. November 14, 1934 Other

Newspaper Excerpt: Depositors in five of Washington's closed banks may soon receive additional dividends as a result of stockholders paying $1,000,000 of a $3,340,000 assessment ... assessments were levied on 1,343 holders of stock in the Federal-American, District National, Seventh Street Savings, Northeast Savings and Potomac Savings banks.
Source: newspapers

9. July 16, 1935 Other

Newspaper Excerpt: POTOMAC SAVINGS TO PAY DIVIDEND ... Closed Bank Makes Plans to Distribute Quarter of Million to Depositors ... Receiver Norman R. Hamilton, receiver of the Potomac Savings and four other insolvent banks ... Payment will be made ...
Source: newspapers

10. January 12, 1936 Other

Newspaper Excerpt: Potomac Savings, remaining assets $781,162.09 (report by Receiver Norman R. Hamilton); bank closed since 1933; liquidation continuing and dividends paid to depositors.
Source: newspapers

Newspaper Articles (11)

1. May 18, 1933 The Washington Times Washington, DC

Article from The Washington Times, May 18, 1933

Click image to open full size in new tab

Article Text

The name, the First National Bank of Washington, the unanimous choice of directors of five closed banks participating in the merger, has been definitely discarded, it was learned today. The name by which the bank will be known is to be announced by President Edwin C. Graham today. Stock Campaign Opens Each of the five banks began an intensive campaign today to obtain $1,250,000 in subscriptions to the capital stock of the new institution. Use of the name First National, it was said, would ze contradictory to a policy observed by the Treasury Department in disapproving adoption of a name which has once been used by a bank which has failed. A First National in the District. it was said, went into receivership about 50 years ago. The names Central, United, and Hamilton, it was stated at yesterday's meeting of directors, had been approved by the Treasury officials. The names of Colonial and Consolidated also were suggested. At a meeting of directors of the institutions which are merging their "prime" assets in the new bank it was stated by Mr. Graham that he hoped the stock would be subscribed in seven days and that the new bank would be functioning early in June. 100,000 Depositors The new bank, it was stated. will start business with entirely liquid assets totalling $11,131,211 and that it will have 100,000 depositors. Member of Reserve It will be a member of the Federal Reserve system and will conduct a general banking business unencumbered with real estate or real estate mortgages, it was stated. Slow or doubtful assets are to be liquidated through conservators of the "old" banks. This, it was pointed out, would be and to than other Shuman, stockholders more ing W. returns rapid Irving orderly depositors of in methods. the bring- office and reorganization division of the of the Comptroller of the Currency, in reviewing the "Washington plan" of releasing frozen assets of closed banks, reminded the directors that stockholders' liability with respect to the "old banks" remains until the liquidation of their affairs is completed. 50 Per Cent Available All banks becoming a part of the new institution will make available 50 per cent of their deposits. 1 The capitalization of the new institution probably will be e changed as other banks enter the S merger. The five participating banks at S present are the Federal-American < National Bank and Trust Comf pany, the District National, the e Potomac Savings, Washington f Savings and the Northeast Savings. t The Woodridge-Langdon Savings and Commercial Bank also is exI pected to join and the United States Savings, Seventh Street ) I Savings and Chevy Chase Savings : Banks, are considering joining.

2. November 1, 1933 Evening Star Washington, DC

Article from Evening Star, November 1, 1933

Click image to open full size in new tab

Article Text

might otherwise have been paid out in salaries to receivers." he said. "Both of the newly appointed receivers are mature men of wide business experience." Mr. Hardee, who takes over the Federal-American and the Chevy Chase assets, was Governor of Florida from 1921 to 1925. In addition, he is an experienced lawyer and banker. A native of Live Oak, Fla., he began his law practice in 1900. He was solicitor general for the third Florida judicial district from 1905 to 1913 and was Speaker of the House of Representatives in that State in 1915 and 1917. He has been in the banking business since 1902. In that year he organized the First National Bank of Live Oak. He served as a director and vice president from 1902 to 1908, and in the latter year was elected president. From 1908 until 1928 he remained as president, and he still has an interest in that bank although no longer connected with it in an official capacity. In addition he is now president of the Commercial Bank of Live Oak and has been for the last five years. Mr. Hamilton, who takes over the assets of six banks, of which the largest is in the District National, was born and raised in Portsmouth, Va. which is now his home. He has had extensive business experience both there and in Norfolk. For several years he was a director of a bank in Norfolk and is now a director of the Mutual Building Association there. Collector of Customs. From 1913 to 1922 he was collector of customs at Norfolk-Newport News, representing both the Treasury and State Departments in enforcing neutrality laws in Virginia waters. In this position he virtually was head of a business with an annual income of around $5,000,000. As nautrality enforcement officer, Mr. Hamilton interned at Newport News the German raiders, Prinz Eitel Frederick and Kron Prinz Wilhelm, and the German prize ship Appam. At Norfolk he boarded the Russian steamer Omsk loaded with $3,000,000 worth of allied food stuffs and placed under arrest the heavily armed, mutinous crew of 48 Bolsheviks. The policy to be followed by these two receivers in handling the remaining assets of eight banks was briefly put in the controller's statement when he said the receivers "will devote their efforts toward liquidating the remaining assets of each of the eight District of Columbia banks." The conservators of the member banks of the Hamilton, who are succeeded by receivers are as follows: Federal-American, John Poole: District National, Joshua Evans, jr.; Potomac Savings, George W. Offutt; Washington Savings, Robert A. Sisson: Northeast Savings, George F. Hoover; WoodridgeLangdon Savings and Commercial, E. L. Norris, and Seventh Street, John D. Howard. Four of these, Evans, Sisson, Hoover and Norris, have become officials of the Hamilton National Bank. The question of whether a new receiver will call for an assessment on stock in these eight banks remains unanswered today, although it was a matter of vital importance to the stockholders ir all of these institutions. The policy on this assessment is expected to be developed later.

3. December 15, 1933 Evening Star Washington, DC

Article from Evening Star, December 15, 1933

Click image to open full size in new tab

Article Text

BANK LIQUIDATION WILL BE QUICKENED Former Gov. McLean Named to Help Receiver in D.C. Institutions. BY EDWARD C. STONE. Liquidation of six Washington banks is to become more rapid by the appointment of Angus W. McLean, former Governor of North Carolina, as attorney to assist Receiver Norman R. Hamilton. The banks to which he will give attention are the District National, Northeast Savings, Seventh Street Savings, Washington Savings, Potomac Savings and Woodridge-Langdon Savings & Commercial. Appointed yesterday by Controller J. F. T. O'Connor, he has already begun his new duties. Mr. McLean has maintained a law office in Washington for the past six months. He resided here at the time of the World War and for two years after that period. being director and later managing director of the War Finance Corporation. He was Assistant Secretary of the Treasury in 1920 and 1921, being in charge of customs. internal revenue, prohibition enforcement and secret service: also serving as chairman of the Railway Loan Advisory Committee, under Secretary D. F. Houston. He served as Governor of his home State from 1925 to 1929, and back in 1920 was president of the North Carolina Bar Association. Depositors in the six banks are hoping for an early payment of a part of their funds. This, however, depends on an opportune time for the sale of frozen assets. Banks Planning for Insurance. Banks all over the United States must start the reports at once which they will make the Federal Deposit Insurance Corporation, in connection with the temporary insurance plan which goes into effect on January 1. Under the temporary arrangement all deposits up to $2,500 will be insured up to July 1. After that the permanent law is to go into effect. by which larger amounts are to be protected. The reports to the guarantee corporation are to be made as of today, December 15, and cover the number of depositors each bank has, amount of deposits and other facts. The banks are given until December 23 for the completion of these reports. On or 08fore that date the reports must be filed and the first payment of onefourth of 1 per cent of deposits must be turned into the insurance fund. In some quarters it is anticipated that there will be a considerable increase in bank deposits after the first of the year. With deposits guaranteed up to $2,500. a new era in confidence is expected to develop. New York Banks Paying Dividends. As reported in a bulletin by Waggaman, Brawner & Co., Inc., investment bankers, most of the large New York Clearing House banks have declared their regular dividends for the last quarter of 1933. These bank stocks are largely held by local investors, and checks covering their dividends will be received by them on January 1 or 2. Dividends already declared are:

4. March 2, 1934 The Washington Times Washington, DC

Article from The Washington Times, March 2, 1934

Click image to open full size in new tab

Article Text

ings on the Flecher Rayburn bill and kept his local manager, A. Harmer Reeside, on the jump showing him around. Like all brokers we've talked to. Mr Westheimer thinks the Hare Fletcher Ray- Dunbar burn bill must be modified or else the stock market business will go to the "bow-wows." He says: "All American progress is due to the fact that people have speculated." He cites some very conclusive reasons for his statement-building of the railroads, promotion of aviation, advance of telegraphic and telephone communication, and the like. Says Mr. Westheimer, and he's right, too: "Where would America be if the weren't a we have today speculative any empire mood? people stretching Would in across the country, or still be a small English colony?" He thinks the average Amerigamble, can citizen take the wants big chance. to plunge, Is he right? And while on the subject of the Westheimer firm. it might be stated that Miss Bessie Shoor, is popular customer's woman, around and about again. She recently was operated on for appendicitis We're beginning to get fan mail. People are writing in to ask about the condition of certain stock. though, we aren't posing and do the brokers' usurp Sorry, as experts business. not wish So, in- to if you write us for that kind of formation and we don't answer, please appreciate our position. Now that the Potomac Savings Bank has physically moved into the District National Bank Building things are really buzzing there. The Northeast Savings already was there. Norman Hamilton is receiver for five of the closed banks which entered the Hamilton National Bank merger and he hopes to have more company soon. In addition to District and Northeast and Potomac, Mr. Hamilton is receiver for the Washington Savings and Seventh Street Savings. Ferry Heath, of E. H. Harriman & Co., goes to lunch without his coat in this weather. But he wears his hat. Richard Whitney, who's been about here testifying the visited stock a exchange, hasn't even single local brokerage office, it's said. John Caswell, ir., manager of Clark, Childs and Keech, is out of the city. He's in New York. Milton Sherrill, local for Investors in the Barr manager with James offices Syndicate, Building, business that February the reports through Washington cent above office was exactly 100 per that done in January, and with two exceptions, the best month since May, 1933. Mr. Sherrill said: "Our business over the United and Canada and we States rapidly, expect is improving 1934 from to A report office in states that Minn., the be a home good year. the Minneapolis, first six months of this year shows an increase for the company of 21 per cent over the same period in 1933. "Mrs. Rose Morrow led the entire sales force here in production in February. She has been with the syndicate several years and February was one of her best months." Mr. Sherill states that he very optimistic about the immediate future for his business in Washington. "Things are more settled here and the than at any brighter right now future time looks for over a year. In my opinion, business is going to be good in Washington this year."

5. March 27, 1934 The Washington Times Washington, DC

Article from The Washington Times, March 27, 1934

Click image to open full size in new tab

Article Text

STOCKHOLDERS BANKS FOUR FACE LEVIES By DUNBAR HARE Stockholders in four of the closed "State" banks which became part of the seven-bank combination that merged into the Hamilton National Bank may have to pay their assessments within three weeks, it was learned authentically today. Practically all details in connection with levying the assessments necessary before an additional payment to depositors can be made have been completed, except in some cases where the approval of the comptroller of the currency is being temporarily withheld. That, however, will be straightened out within two weeks. giving an extra week for the sending-out of the notices. Banks Involved Banks involved are: Potomac Savings, Northeast Savings, Washington Savings and Seventh Street Savings. The fifth "State" bank in the Hamilton merger, the WoodridgeLangdon Commercial and Savings, is not involved at present, since it is not in receivership. However, its remaining assets, like those of the other four, were released from the option held by the Hamilton last week, and a levy there is expected as soon as the Treasury Department decides whether to give that bank a separate receiver or bring it under one of the two receivers who are handling the affairs of the other six banks-two of them national -which became part of the combine. Assessments Delayed The Hamilton merger was predicated on the fact that after six months that institution could call on receivers of the closed "State" banks to substitute secondary assets for time assets up to 25 per cent. In the case of the Federal American and the District National banks, however, the option does not expire until September 23, at which time the consolidated bank can demand 50 per cent of remaining assets for those it now holds but deems unworthy. Under the circumstances, stockholders of the Federal American and the District National are not expected to fear assessment until after the option expires. Stockholders of the four "State" banks involved are expected to produce about $500,000, a 100 per cent assesment on the par value of the stock they hold.

6. June 17, 1934 Evening Star Washington, DC

Article from Evening Star, June 17, 1934

Click image to open full size in new tab

Article Text

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

7. July 7, 1934 The Washington Daily News Washington, DC

Article from The Washington Daily News, July 7, 1934

Click image to open full size in new tab

Article Text

100% Levy Made on Stockholders in 5 D. C. Banks Huge Sum Would Be Available for Depositors and Other Creditors By ROBERT M. BUCK The blow, expected for a year, has fallen on the stockholders of five of Washington's closed banks. J. F. T. O'Connor, Comptroller of the Currency, today announced that he had levied 100 per cent assessments against shareholders of the following banks: The receivers of the five banks, the best assets of all of which were taken over by the Hamilton National Bank, which was organized for that purpose, have been instructed to demand of each stockholder $1 in cash for every $1 he has invested in stock. INTEREST AFTER AUG. 13 These assessments are payable Aug. 13, but may be paid in four equal instalments monthly beginning on that date. They bear 6 per cent interest after Aug. 13. The collections, when made, will be added to the other assets of the No. of stockBank Assessment holders Federal-American National $2,000,000 642 District National 1,000,000 325 140,000 68 Potomac Savings Northeast Savings 100,000 185 Seventh Street 100,000 123 Savings Totals $3,340,000 1343

8. October 15, 1934 Evening star Washington, DC

Article from Evening star, October 15, 1934

Click image to open full size in new tab

Article Text

BANK ASSESSMENT INSTALLMENTS PAID Receivers for Five Insolvent Banks Receive Payments From Stockholders. Thousands of dollars were being paid today two receivers for five insolvent banks in the District of Columbia under the third installment of 100 per on bank stock. Receivers Norman A. Hamilton and Cary A. Hardee were accepting payments both by mail and in person the of the five banks. This is the third installment, the falling falling until Noeach 15. total the five banks, divided as follows: Bank Trust District Potomac Savings $140,000; Northeast Savings $100,000, Seventh Street Savings Bank, $100,000. Payment of are being in some of these by test cases filed in the courts. The paid in stock to be dividends to depositors, pay they cannot be diverted by reand ceivers to repay any loans to the ReFinance Corporation. Legion Plans Oyster Roast. TAKOMA PARK, Md., October 15 Post, No. the Department of Maryland, the has completed defor helding an oyster roast at Spring Armory on Novemat Music be furnished the Walter Reed Orchestra.

9. November 14, 1934 The Washington Times Washington, DC

Article from The Washington Times, November 14, 1934

Click image to open full size in new tab

Article Text

D.C. BANKS GET MORE FUNDS Depositors in five of Washington's closed banks may soon receive additional dividends it appears today as a result of stockholders paying $1,000,000 of a $3,340,000 assessment. Yesterday was the last day for stockholders to make payments on their assessments if they wanted to avoid suit in court and the risk of losing their homes and personal effects. Not until late today will it be known exactly how much was received by Receivers Cary A. Hardee and Norman R. Hamilton. The assessments were levied on 1,343 holders of stock in the Federal-American, District National, Seventh Street Savings, Northeast Savings and Potomac Savings banks.

10. July 16, 1935 Evening Star Washington, DC

Article from Evening Star, July 16, 1935

Click image to open full size in new tab

Article Text

POTOMAC SAVINGS TO PAY DIVIDEND Closed Bank Makes Plans to Distribute Quarter of Million to Depositors. More than a quarter of a million will become of the closed positors dollars Potomac available additional Savings to dethe form of an of 12 1/2 per cent. dividend Bank in G beginning street. tomorrow morning at 1406 This was announced officially today by Norman R. Hamilton, receiver of the Potomac Savings and four other insolvent banks, with headquarters in the old District National Bank. must call at the cid address, Depositors District the National G street and bring with them two Bank documents- office, post card conservator's of official notification, and their dividencis of paid certificate. their Depositors unless will both not at the be these documents are presented bank window, Receiver Hamilton em phasized. 8,000 Claims Outstanding Payment will be made 00 8,000 in installments are mailed cut claims, being them individually Post just when cards to the depositors, tellira to at the bank. group of persons call about 1,000 The received first their post cards today, notifying them to call at the nank torrorrow. Daily from on will about a be now mailed, group: of 1,000 post have cards been day. The 8,000 claims which will find a are not proven total of $253,767 waiting Checks for who them have ready for those depositors tailed to prove their claims. This will make a total of 621/2 per out of which operSavings cent dividends Bank, formerly the Potomac ated at M street and Wisconsin avenue in Georgetown. The total deposit liability of this it bank in was bank when holiday suspended March, during 1933, the Several depositors have claims, $2,378,217.22. not yet proven which actually makes the 50 per cent dividends paid out. less than half of the total deposit liability. Stock Assessments Out. Receiver Hamilton is paying the dividend of 12 1/2 per out to funds second resorting courts from cent with- stock here assessment, because the that double have not lie held against shareholders assessment of does this bank, since it was chartered in the State of Virginia, which has no double liability. Receiver Hamilton also stated today that he could pay another dividend closed District court contests over Bank from if the National liability up. of can be cleared stockholders 50 cent. The District has paid per Statement of quarterly condition embattled Park today, by of made the public Receiver Savings assets Bank John of F. Moran, shows remaining a book value of $1,289,886.53, but an estimated actual value of only $500,000. to depositors at of of this Liabilities suspension bank in the March, date 1933. totalled $3,399,516.39 out of which depositors have received only 20 per cent, or a total, up to June 30, of $560,180.07. Bank Has Paid 80 Per Cent. Moran was Departmental Receiver Bank, reported which dividends that closed the and has paid in of July, 80 per 1932, cent, amounting assets to $61,- of 666.81 now has remaining value of borrowed from F. bank an estimated never $55,000. the R. This C., but has collected from a stock assessment of $106,060 funds amounting to $53,303.85. The North Capitol Savings remaining Bank, Moran reported, has asat $365,100, after paydividends of 25 per cent, sets ing estimated bank, amount- which ing to $235,036.47. This was closed in July, 1932, borrowed from the R. F. C. $269,400, and has repaid $180,900. The closed Continental Trust Co., which was merged with the Commerwhen the cial solvent National only Bank, and Commercial became listed in- by failed in February, 1933, was Receiver having Moran as remaining assets estimated at $476,116.

11. January 12, 1936 Evening Star Washington, DC

Article from Evening Star, January 12, 1936

Click image to open full size in new tab

Article Text

DISTRICT BANK'S ASSETS GROWING Hopes for Dividend This Year Seen in Receiver's Report. Hope for a dividend some time this year for depositors of the District National Bank, closed since 1933, was seen in the quarterly report of Receiver Norman R. Hamilton, made public yesterday. Although a suit still is pending by certain stockholders, seeking to prevent collection of assessment against stockholders, the receivership is making good progress in liquidating the institution, the report shows, with remaining assets now estimated at $2,201,958.72. Collections from stockholders, listed as "cash collected by receiver and held as trustee for owners," total $469,802.02. The bank owed the Reconstruction Finance Corp. a total of $1,193,487, but has paid back $901,287, and thus owes less than $300,000 on assets valued at a much higher figure. $567,186 Cash on Hand. Cash in the hands of the receiver has reached $567,186.71. When another dividend may be payable to depositors is a question which cannot be answered at this time by the receiver, but the figures speak for themselves. Distribution may not be made, it is understood, however, until the stockholders' suit is settled. Under a dividend of 50 per cent, paid in September, 1933, depositors had received up to the end of 1935 a total of $1,920,331.22. Reports of several other receivers of insolvent banks were filed also yesterday, disclosing the condition of these institutions at the close of 1935. Delayed by Litigation. The Federal . American National Bank & Trust Co., of which Cary A Hardee is receiver, has remaining assets estimated at $3,029,389.66, but pending litigation apparently has delayed indefinitely possibility of a dividend to depositors. Stockholders have paid in a total of $1,005,186.73 on a stock assessment of $2,000,000. Cash in hand was listed at $1,090,923.89, and a liquidating account included $114,815.88. Out of a total loan from the R. F. C. amounting to $2,348,425.97 there has been paid back $1,090,923.80. Depositors of this bank have received one dividend of 50 per cent, which up to the end of the year had been paid out in the total of $4,162,486.21. Reports of Other Banks. Reports on five other banks were made public. Among those, four were in the hands of Receiver Hamilton, and had remaining assets as follows: Potomac Savings, $781,162.09; Seventh Street Savings, $377,782.25; Northeast Savings, $221,260.98; Washington Savings, $132,402.33. The Chevy Chase Savings Bank, which has paid out 80 per cent and probably will pay 100 per cent to its depositors eventually, was reported by Receiver Hardee to have total remaining assets amounting to $30,557.68.