Accommodated withdrawals, Fed/other loan, Public signal of financial health, Full suspension, Books examined
Other: Federal examiner placed temporarily in charge and a receiver was appointed; negotiable certificates/loan program organized to provide depositors liquidity and assist liquidation/reopening plans.
THREE CALIFORNIA BANKS CLOSE AFTER HEAVY RUNS
SAN BERNARDINO, Cal.-The doors of three banks were closed today following heavy withdrawals, assertedly as the result of malicious rumors regarding their solvency. A run started on a fourth bank, the American National, jafter the San Bernardino National,*the County Savings Bank and the First Bank of Highland, six miles from here, were closed.
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San Bernardino Banks Closed SAN BERNARDINO, June 18. (U.P.)-The doors of three banks were closed today following heavy withdrawals by depositors, assertedly as the result of malicious rumors regarding their solvency. A run started on a fourth bank, the American National bank, after the San Bernardino National, the County Savings bank and the First Bank of Highland, six miles from here, were closed. Officers of the American National said they would remain open and pay all depositors. Superintendent of Banks Edward Rainey announced that the County Savings bank would probably open within a few days and the San Bernardino National soon after Police had been investigating a "whispering campaign" for several days, since bank officers reported rumors had been circulated by telephone, frightening depositors. WASHINGTON, June 18. (U.P.)The comptroller of the currency's office today said that M. V. Stendrup, national bank examiner, win handle affairs of the San Bernardino, Calif., National Bank until a receiver is appointed. Officials said it was better for the bank to close its doors and liquidate, than to continue operations and run itself into a worse condition. Deposits on the date of closing were listed by the examiner at $1,100,000 and total resources on February 1, 1932, at $2,096,168.
At the Bank of America, the entire on throughout the day, all demands the Mr. Smith, too, that the bank will be open as usual this morning No issued by the Federal banking department, charge of the San Bernardino National except that made by Max the Federal bank in doors failed open by noon. This statement San Bernardino National bank closed at o'clock this the of the board directors and is now under the direction of the currency. Max V. Spendrup, national bank examiner, is charge.' Mr. Rainey, ordered the Bernardino ty Savings bank, declared that his action was necessary protect the By JOHN P. BOUGHAN interest of depositors following the Writer) closing of the national bank. CHICAGO, June 17.-Collapsing under the first selling presMr. Rainey issued the following sure from the 1932 United States "Protection of the interests of harvest, all wheat outthe depositors in the San Bernar- did today the season's low price dino County Savings bank made Favorable weather for domestic necessary for me to take charge the bank's this morning. The winter together closing of the San Bernardino with rains spring terCounty bank because of ritory had bearish effect, together with New York run which had been in progress for stock Export several made business in American wheat closing its affiliated savings bank appeared to be almost nil. Rumor Spreading Wheat nervous at nearly Felony in State the day's cents under "My has been in close finish, down, touch the San oats off and provisions Bernardino. We were cents systematic bank cam- Open High Low Close July old .48% paign had begun through the criminal rumors about Sept. old The spreading about banks is felony in .53% "The public should pay no tention these malicious tales. July The grand however, should Sept. jury, Dec. pay great deal of attention to Oatsparticular located in one July 20% of the most and produc- Sept. tive districts of California. There Dec. .22% .23 finer in the country. The city should be prosperous July course, "When banks close their doors Dec. depositors jump the conclusion Lardmoney all lost. Such is not July 3.97 the case. As matter of fact, Oct. 4.10 4.10 B dividend depositors the Valley 4.05 4.00 Bank to be paid once. The checks are written Clear July 4.30 4.30 4727 of them. This will put 000.00 into San Ber- Sept. 4.45 4.45 4.45 Needles and Barstow. Gill, president of the San MARKETS AT A GLANCE yesterday he and the NEW June directors of the bank felt necesweak; pivotal shares to business because points. Bonds steady: German the many withdrawals due sues rally. Curb: oils and the rumors which had utilities supply. Foreign been concerning the changes: sterling sags. Cotbank President sympathy stock Gill he hoped the was but and that the profit taking. Coffee: quiet; trade bank would be able on to probuying. ceed its business. R. E. Roberts, vice-president DRIED FRUITS the San Bernardino bank fruits NEW YORK June declared the bank Market apples had operations in order its assets for the benefit of depositors Mr. Roberts that the numerous rumors fancy culated concerning the bank had seedless caused the withdrawals standards cipitated the difficulty. He added his belief that the the would ultimately be paid false information as to the condiin full. of financial of the city. Scores of depositors, Bernar alarmed and divided profits of the San bank and the San Bernar drew deposits from the San Bernardino National bank. This dino County Savings bank at the continued drastic action $4,057,041 and resources necessary to protect the posits the against further with
RUN ON BANK LAID TO COMMUNISTS' WORK
SAN BERNARDINO, June 18. (UP)—The county grand jury was called today to meet next Tuesday to investigate acts of asserted communists who started a run on the San Bernardino National bank which caused its closing yesterday.
Dr. M. J. Sweeney, Redlands, foreman of the inquisitorial body, declared that for the past ten days there had been an asserted movement on foot to undermine the bank's financial structure.
More than 1000 persons were called on the telephone and warned to withdraw their funds "because the bank is failing," Dr. Sweeney said.
He declared the movement had been traced directly to communists.
A run had been made on the American National bank yesterday and today, but all depositors were promptly paid and the bank weathered the storm. The Federal Reserve bank of Los Angeles came to its aid with cash.
Definite Steps Will Be Taken When Surveys Finished by Federal, State Men
Plans for the reopening of the San Bernardino National bank and the San Bernardino County Savings bank were launched yesterday. Until surveys completed by Federal state banking representatives there be formal statement the plan of procedure, was indicated. That the community demands the reopening of both banks and will support enthusiastically such movement apparent. While no committee organization tempted there were strong indications that business interests and others immediately ganize support the reopening movement. Support Assured Bank Executives Roberts, John C. Ralphs, Smith, Shay and others the bank received countless support for any movement that undertaken secure the reopening of the banks. of both banks, from Los Angeles last night. He began plans for with directors stockholders of two outline definite that will object the has indicated that both the Federal and state banking departments anxious to be any assistance movement to reopen the One of the purposes of the FedFinance correopen banks. Hysteria Must Entirely Wiped Out The first assurance required from the by both and state authorities will for complete cooperation and the elimination hysteria. Everywhere there pressions willingness for both moral and financial support, the latter necessary, for reopening movement. Word yesterday from Californians Washington there would be unanimous support for the proposal of reopening. Both the Federal and state banking departments completed their work of organizing to handle their functions. The work of making survey the assets and liabilities the banks well underway,
S.B. Communistic Rumors and Phone Calls Before Jury
Alleged communistie rumors which led to the collapse of the San Bernardino National Bank and heavy runs on two others in the Gate City were under probe today by the county grand jury, in session at the courthouse. Edward Rainey. state superintendent of banks was one of the witnesses testifying before the inquisitorial body as to his knowledge of similar communistic compaigns in various cities of the state.
Since closing of the financial institution last Friday, Daniel G. Murdock. investigator for the district attorney's office has been gathering data which was presented to the inquisitors this morning. Because rumors originating in San Bernardino are principally subjects within the jurisdiction of the Gate City justice court. the jury's quiz is mainly focused on similar activities in other cities of the county, including Supervisors also met with the jury this morning to study the reports re cently discussed with the San Bernardino County Tax Coordination committee during the budget hearings held two weeks ago at the courthouse.
'Red' Probe Opened In Run On S. C. Bank
SAN BERNARDINO June 21 M. Sweeney foreman of the San Bernardino County grand jury, has called a meeting of that body for today to investigate alleged propaganda against banks in San Bernardino. Dr. said he had been in formed that deliberate and definite campaign was to cause the run recently on the San Bernardino National Bank
Reds Charged Behind Run on National Bank
SAN BERNARDINO June 21.-(Associated Press) Dr. M. J. Sweeney, foreman of the San Bernardino County Grand Jury, has called a meeting of that body for today to investigate alleged Communist propaganda against banks in San Bernardino. Dr. Sweeney said he had been informed that a deliberate and definite campaign was conducted to cause the run recently on the San Bernardino Na. tional Bank.
MATRICIDE CONFINED Lewis, 34, son of prominent Texas family, who choloformed and beat mother, will be placed in the state insane hospital there might without the formality of a hearing. graduate from Yale Uniprincess Lewis, Wales his versity in 1921, on furlough on next from the institution when he killed the woman, because "I was 34 years In old." birthdays when BANK RECEIVER NAMED his schedule of and WASHINGTON, June work gagements has Charles J. Ritt, former national followed bank examiner, to-day was apas usual, he depointed by the comptroller of curcided to The only task as receiver for the San Berread the (California,) National
S.B. Communistic Rumors and Phone Calls Before Jury
Alleged communistic rumors which led to the collapse of the San Bernardino National Bank and heavy runs on two others in the Gate City were under probe today by the county grand jury, in session at the courthouse. Edward Rainey, state superintendent of banks was one of the witnesses testifying before the inquisitorial body as to his knowledge of similar communistic compaigns in various cities of the state. Since closing of the financial institution last Friday. Daniel G. Murdock, investigator for the district attorney's office has been gathering data which was presented to the inquisitors this
Holders of safety deposit boxes in the San Bernardino National bank will have access to them shortly after July according to Max V. Spendrup, Federal bank examiner who is temporarily in charge of the affairs of the institution Mr. Spendrup announced that Charles Ritts, receiver for the bank, will arrive to take over his duties about July 1, and that within day or two thereafter arrangements will be made to permit safety depositors access to their boxes. Plans for reorganization and reopening of the national bank and the San Bernardino County Savings bank are reported as proceeding quietly.
S.B. Communistic Rumors and Phone Calls Before Jury
Alleged communistic rumors which led to the collapse of the San Bernardino National Bank and heavy runs on two others in the Gate City were under probe today by the county grand Jury, in session at the courthouse. Edward Ralney. state superintendent of banks was one of the witnesses tes(Ifying before the Inquisitorial body as to his knowledge of similar com-
Charles Ritt. former national bank has been appointed by the comptroller of currency as receiver for the San Bernadino, Calif., National bank. Ritt has just receivership of the bank Port Chicago, a suburb of
Stockholders and Directors of Savings Institution Meet With State Official
The move launched last week by business interests of the city to reopen the San Bernardino National bank and the San Bernardino CounSavings bank was advanced yesterday when stockholders of the savings bank met with John McFall, chief bank examiner of the southern division and committee business conferred Ritt, recently appointed receiver of the national bank The savings bank stockholders with Mr. the steps necessary open savings bank, which closed after the directors the national bank acted to protect the Committee Meets With Bank Receiver that the stockholders reviewed steps which been outlined by Edward Rainey, state bank superintendent, before the reopening could be effected. No statement was issued following the meeting and probable that series will be held before definite program adopted. At the second conference, the business and professional men headed Mack. president the Pioneer Title Insurance Co., met with Mr. Ritt review the insofar as the San Bernardino National bank concerned. This institution operated under Federal charter and therefore, under the jurisdiction of the Federal bank raththan the state, is the savings bank. The national bank Max Spendrup, not yet completed his report and, probable, steps be taken until this report is filed with the comptroller of the currency,
Doors of the San Bernardino National bank will opened permitting access safety Federal charge the bank. receiver also that safety boxes who the bank not be boxes. staff bank the been fixed, the
Depositors Urged to Speed Must Be Approved Before Dividend Paid
Filing of claims with the San County Savings bank began Total 168 filed. deputy state of banks. pealed depositors hurry their claims. Total of 10,000 claims must filed. approved and presented the court, before the first dividend be paid to Each depositor been mailed instructions how file claims. Filing of claims with the San National bank proceeding slowly, and depositors urged by national bank receiver, file their claims. Negotiations proceeding for transfer the school children's accounts from the San Bernardino County Savings bank to of the other banks San Beof the that these deposits taken by other banks claims not be filed these accounts.
A. Q. Robinson, deputy state su perintendent of banks, announced yesterday that 186 claims against the San Bernardino County Savings Bank were filed yésterday, but that 10,000 claims must be filed before the first dividend can be paid. Filing of claims with the San Bernardino National Bank is proceeding slowly, and depositors are urged by C. J. Ritt, national bank receiver, to file their claims. Negotiations are proceeding for the transfer of the school children's accounts from the San Bernardino County Savings Bank to one of the other banks of San Bernardino. Because of the probability that these deposits will be taken over by one of the other banks, claims are not to be filed on these accounts.
Issuing of Negotiable Paper to Depositors of Close Finance Houses Backed by State
Immediate release of 20 per cent the assets of depositors of the San Bernardino National bank and the San Bernardino County ings bank was made possible yesterday, when Edwin M. Dougherty corporation commissioner, proved plans the American tional bank issue negotiable tificates secured certified positors' claims against the two closed banks. President McCook of the American bank said that exchange the negotiable certificates for depositor's edged the national banking department begin the days. The $10, $100 will accepted collateral loans the AmeriNational may be used for currency purchases paying bills San Bernardino business houses supporting the program. to Back Program
Mr. McCook said that no listing establishments willing cooperin liquidation program by accepting the bank certificates has been attempted. He said, however, that large number leading businessmen have him their readiness aid the program means placing additional collateral with recognized bank value There will be nominal handling fee charged against persons posting their depositor's claims obtain the enough cover actual costs the transaction, Mr. McCook said. The positor will obligated to the extent of the per cent loan made form certificates, and when paid off through liquidation of assets the the certified claims will released. Bank Claims Are Not Surrendered
The customer does not surrender his of the but mortgages his papers after by the bank Mr. McCook explained. liquidation off original cent loan, the per positor will reclaiming his depositor's certificate, obtaining second loan similar to the possible that the county and may agree accept the negotiable as taxes winter, that legally be done, McCook said. effect the tificate plan the cooperative plan by California banks during the whereby "bank currency" sued.
Crowds Throng San Bernardino National Throughout Day As First Payment Made
Hundreds of depositors called at the San Bernardino National bank yesterday and received checks representing the first payment of dividends since liquidation of the institution started following suspension of business last June. The first dividend totals cent, close quarter of lion dollars. Ritt. bank ceiver, said yesterday afternoon he had way of estimating the amount paid out to date because compilation had been made yet.
"We were crowded throughout the day, however,' he said. several times the line into the street. Hundreds of depositors their claims and received their checks." Payment of the 25 per cent dividend will not exhaust the cash hand but will leave the nucleus for the second dividend. There has been no definite information to when the San Bernardino County Savings bank. which closed at the same time the national bank, will declare its first dividend. although reportthat will be made before March
Charles receiver of the San Bernardino National bank. yesterday filed suit in court against Susie Amos to collect $6,137.65 alleged due demand note Attorney William Guthrie represents the bank
Attorney Ben Harrison, chairman the Democratic county central committee, has been pointed attorney for the receiver the San Bernardino National bank. The appointment mended Charles M. Brown Redlands and Senator McAdoo and made by the comptroller of the currency.
A dividend of 20 per cent is to News be paid by the San Bernardino National Bank. the second since the institution closed in June, 1932. It will put $215,000 in circulation. Loretta Douglas The dividend makes the total dividend paid by the bank since Fairbanks, Jr Young it closed 45 per cent. Receiver -inCharles Kitt is paying the divi"LIFE OF JIMMY dend.