Seventh Street Savings - Washington, DC

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 12, 1936
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini
Short Digest: afcb0338

Response Measures

None

Description

Seventh Street Savings is repeatedly listed as being in liquidation/receivership and paying out receivership dividends in 1936; there is no mention of a depositor run. The closure appears permanent with a receiver handling asset liquidation and dividend distributions.

Events (3)

1. January 12, 1936 Suspension

Cause: Government Action
Cause Details: Bank is in liquidation under a court-appointed receiver; suspended operations and being liquidated by the receiver.
Newspaper Excerpt: Reports of several other receivers of insolvent banks were filed also yesterday, disclosing the condition of these institutions at the close of 1935. ... Seventh Street Savings, $377,782.25.
Source: newspapers

2. July 15, 1936 Receivership

Newspaper Excerpt: Mr Wardell has also taken over the receiverships of the Potomac Savings Bank Northeast Savings, Seventh Street Savings and Washington Savings Bank, also in liquidation.
Source: newspapers

3. December 31, 1936 Other

Newspaper Excerpt: Seventh Street Savings, 80 per cent, amounting to $845,188. (payments by receiverships...)
Source: newspapers

Newspaper Articles (3)

1. January 12, 1936 Evening Star Washington, DC

Article from Evening Star, January 12, 1936

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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.

2. July 15, 1936 Evening Star Washington, DC

Article from Evening Star, July 15, 1936

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Article Text

AYRES SEES BEST GAINS SINCE 1930 Banker Reports Unusual Recovery in Half Year Over Broad Front. BY EDWARD C. STONE. In one of the most optimistic re views since 1929, Leonard P. Ayres, Cleveland banker. states that business has clearly given an exceptionally good account of its activities in the first half of 1936, despite the fact that all these fine figures are still depression figures. It seems probable that it will continue to do well in the second half of the year, despite the prospective disputes of the politica ampaign. the looming possibilities of labor difficulties, and the threats of droughts which are widspread and becoming serious. This promises to be the best business year since 1930, and possibly since 1929. The security markets have done well, Col. Ayres adds Stock prices rose strongly and steadily during the first quarter and the volume of trading was large There followed a month of decline and two months of advance in the second quarter, during which the volume was low. but the losses were recovered Bond prices have advanced during the half year and are at record high levels. The volume of new financing, which has been mostly refinancing. has so greatly increased that it has been about five times as large as in the first half of last year. Among the important business ad vances during the last six months, Col Ayres refers particularly to the automobile industry which has continued to hold its leadership throughout the recovery period. He looks for the largest motor output since 1929 The steel industry also seems likely to have the best years since 1929, he believes He finds much better figures for new construction. factory pay rolls. car loadings, foreign trade and farm income It will probably prove true, he concludes, that when the percentage of durable goods factory workers reaches a point midway between the 50 and 55 per cent levels full industrial recovery will have developed. It reached 49 per cent in May Reserve Boost Expected. Little surprise was expressed in the financial district today over the infor creased reserve requirements member banks by 50 per cent. effective August 15. announced by Gov Eccles of the Federal Reserve Board Nor was the amount of the increase considered momentous Some such action has been anticipated for several months It was noted that it came at a time when bonds were especially strong and when the stock market averages were entering, or close to new high ground for the present year. Early in the day there was no marked reaction in Wall Street either way to the new ruling The move reduces the chances for serious credit inflation. about which many economists have recently written so much, bankers said today At the same time there will remain available in the banks all the funds and more that may be needed for sound credit borrowing Gov. Eccles says the increased Re serve requirements will add to 'investment confidence. and will not affect 'the easy money policy now prevailing This policy will be continued. he asserted. Bank Liquidations Progress. Norman R. Hamilton, who has been succeeded as receiver for the District National and other closed banks by Justus S. Wardell has made an excel lent record in liquidation of the assets of these institutions. His final report for the District National estimat the value of the remaining assets at $2. 314.598. More than $1,000,000 has been paid the R F C. on a total loan of $1,193,641 Further dividends to depositors are said to be unlikely until pending legal actions are disposed of Mr Wardell has also taken over the recei iverships of the Potomac Savings Bank Northeast Savings, Seventh Street Savings and Washington Savings Bank, also in liquidation. The closed Commercial National Bank is making good progress in paying off its loan of more than $4,000.000 from the Reconstruction Finance Corp. according to the uarterly report of the receiver, Robert C. Baldwin, for the period ending June 30. Of the original loan of $4,316,000, the receiver has repaid $3,465,900. Total assets were $14,754,877.56 when the bank closed February 28, 1933. Depositors have received dividends of 60 per cent of their original accounts. amounting to $3,360,135.75. Telephone Dividend Paid Some 10.000 holders of American Telephone & Telegraph stock received their quarterly dividend checks of $2.25 a share today The transmittal notices also reported substantial increases in earnings in the second quarter and in the year ending June 30. compared with the similar periods year ago. James M. Johnston & Co. Washington, and New York investment house announced today that orders were received substantially in excess of the total offering yesterday of 20.000 shares of Seaboard Finance Corp. $2 cumulative preferred stock with common stock warrants and that the subscription books were closed at noon yesterday Wisconsin Michigan Power Co. affiliated with North American Co. has filed registration statement with the S. E under the securities act of 1933 for $10,500,000 3 3/4 per cent first mortgage bonds, due 1961 Proceeds will be used to redeem $5,000,000 5 per cent first and refunding mortgage bonds on September at 1031/2 and $5,000,000 41/2 per cent mortgage bonds at 1051/4. Exchange Trading Quiet Capital Traction 5s opened trading on the Washington Stock Exchange today with $1,000 transfer at 921/4. same as yesterday's close. Five shares of American Security & Trust stock appeared on the board at 258, also unchanged from the last previous sale The market closed with single share of Potomac Electric Power 51/2 per cent preferred stock changing ownership at 110% While bid and asked prices were firm on other issues, the Summer heat put crimp in business.

3. December 31, 1936 Evening Star Washington, DC

Article from Evening Star, December 31, 1936

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Article Text

This bank paid out a total of 40 per 7 cent, amounting to $800,000, when some of its assets were taken over $ by the City Bank of Washington. The trustees of the liquidating trust report that liquidation of the remaining assets are "reasonably satisfactory" and that the proceeds from these assets have been used to pay off the Reconstruction Finance Corp. loan of $850,000, which was obtained by the Mount Vernon Savings Bank in order to pay the 40 per cent distribution to depositors. The trustees reported further that by the terms of the "trust indenture" by which they operate no funds can be borrowed to pay a dividend to the depositors. Consequently, proceeds of liquidation of assets will have to be accumulated in an amount that will be reasonably proportioned to the cost of distribution. Many depositors have failed to call for their dividend checks in almost every one of the closed banks. They still come in from time to time for checks. Consequently, the amounts paid out by the receiverships actually increase, although the dividends declared remain in percentage the same. Payments by Other Banks. The latest figures on disbursements on the other closed banks of the city are shown as follows: Departmental Bank, 80 per cent, amounting to $617,144. North Capitol Savings, 25 per cent, amounting to $235,122. Potomac Savings, 62 1/2 per cent, amounting to $1,282,257. Park Savings, 25 per cent, amounting to $760,030. This bank is in litigation, which may be settled during the year 1937. Seventh Street Savings, 80 per cent, amounting to $845,188. Woodridge-Langdon Savings & Commercial, 100 per cent, $400,000. Washington Savings, 80 per cent, $279,015. Potomac Savings, 62 1/2 . per cent, $1,282,257. The Continental Trust Co., which merged with the Commercial National Bank long before the latter. went into receivership, also is in the hands of a receiver and in complicated litigation in its relations both with stockholders and the Commercial Bank. It has paid no receivership dividends. The Industrial Slivings Bank, colored institution, paid 35 per cent, amounting to $192,000, to depositors when it reorganized into the Industrial Bank of Washington, a new institution, now operating at Eleventh and U streets. The Prudential Bank, colored, which consolidated with the Industrial Savings Bank in September, 1932, was formally placed in receizership in March, 1936, and attempts now are being made to collect a stock assessment from shareholders.