768. Peoples Savings & Commercial Bank (Chico, CA)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: April 26, 1933
Location: Chico, California (39.728, -121.837)

Metadata

Model: gpt-5-mini
Short Digest: 52698bbd

Response Measures

None

Description

Articles indicate the bank was placed under a conservator by late April 1933 and never re-opened; a state-appointed receiver was named in July 1933 and took office in August 1933. No explicit contemporaneous run is described in the articles; the action appears to be a suspension leading to receivership/closure under the state superintendent.

Events (3)

1. April 26, 1933 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank placed under conservator (state conservatorship) and operations suspended; deposits were tied up and a conservator was managing funds and operations.
Newspaper Excerpt: Checks ... were issued on the Peoples Commercial Savings Bank, now under a conservator.
Source: newspapers

2. July 25, 1933 Receivership

Newspaper Excerpt: James Lang ... has been appointed receiver for the Peoples Savings & Commercial Bank, Edward Rainey, state bank superintendent, informed The Record last night. Lang ... will assume the receivership of the Chico bank about August or shortly thereafter.
Source: newspapers

3. August 15, 1933 Receivership

Newspaper Excerpt: James Lang has arrived here ... and has taken up his duties as receiver for the People's Savings & Commercial Bank.
Source: newspapers

Newspaper Articles (8)

1. April 26, 1933 Enterprise-Record Chico, CA

Article from Enterprise-Record, April 26, 1933

Click image to open full size in new tab

Article Text

MERCHANTS AID STUDENTS IN PIONEER FETE Financial backing to assure the staging of Pioneer Day by Chico State College students has been secured from Chico merchants. has been announced by Garrett Burt. vice-president of the student body Student body finances are held in the People's Commercial & Savings Bank. new under conservator. and plans for staging of the event had been hampered because the money has not been available Several prizes will be awarded. among which are three cash awards of $7.50. $5 and $2.50 for the first three best floats: two prizes for the leading novelty entries in the parade, prizes for the best whiskers and the best men's and women's costume at the dance Following is the tentative program: to 30-Registration. 9:45 to program. Introduction of the Sheriff and Little Nell. 10:00-Assembling of floats for parade. 11:15-Tug-of-war, Frosh versus nasium.

2. April 26, 1933 Enterprise-Record Chico, CA

Click image to open full size in new tab

Article Text

Call Firemen Cashing Checks Checks given call firemen for their February duty were redeemable yesterday under terms of plan approved by the city council. The council approved plan to transfer $214 from the general fund to the fund from which the firemen are paid, to meet the unredeemed checks, which were issued on the Peoples Commercial Savings Bank, now under a conservator. Some of the call firemen are still holding their checks, while some have been passed to merchants. H. H. Hume, city manager, told coun-

3. May 4, 1933 The Chico Enterprise Chico, CA

Article from The Chico Enterprise, May 4, 1933

Click image to open full size in new tab

Article Text

Agreement Reached on Plan For Opening New Depositors Press For Action plan by which new state bank will be permitted to open was agreed upon today chief deputy. the state division of banks and committee of bankers and bank directors, following conference in San Francisco, according to statement by Holly by telephone to The Enterprise late this Although Holly withheld details of the plan, declaring that they be obtainable from the committee upon their return to Chico, he was emphatic in that the bank organized under the proposed plan would be sound institution under state regulation. The plan is based on assurances of complete co-operation of depositors. The Chico men who conferred with Holly were Lon Bond, Lee Richardson, Sanborn, Paul Yockey, Frank Morehead, M. Moore and Earl R. Bevins. Pointing out the necessity of immediate opening of the local banks the financial situation Chico in to be saved, Oscar Goldstein representing depositors in the First National and People's Commercial and Savings Bank. today conferred length by telephone with E. Holly of San Francisco, chief deputy of the state division of banks. Goldstein informed Holly that the local depositors have organized and determined to demand immediate action either reopening one of the two closed banks organization of new bank in order that funds may be released to depositors, many of whom are farmers and in dire need of cash. committee of local bankers bank directors who went to San Francisco yesterday went conference with Holly at this morning and Goldstein was in formed by Holly that there possibility of plan being agreed upon late today by which one of the banks could be opened once The local bankers who resumed conference Holly this afternoon are Lon Bond, Lee RichardMorehead, Frank Moore and R. Goldstein further declared Holly that necessary the execu tive committee of the local deposit ors protective association which formed last night, would go San Francisco either in body or through committee tomorrow and give signed assurance that there would be on the local bank or banks should they be allowed to open. Goldstein, in behalf of the depositors represents, made emphatic that immediate action demanded and urged of Holly submit to him any plan that he beileves to be feasible for reopen ing of the banks. Organication of Depositors Protective association, composed of depositors in the First National and People's and Saving bank, was formed at meeting in the municipal building last evening, at which Attorney Oscar Goldstein, who announced that he represented group of depositors, presided. Nearly 100 depositors Pfeiffer was named chairman and Frank Kottkamp. secretary. An executive committee ten men representing each of the closed banks was named as follows: On the People's Commercial and Savings Bank executive committee are Dan Zumwalt. Joseph Krikac, W. Charles Collier and Waterland. Members of the First National Trust and Savings Bank executive committee are had bill seeking $6000 which to clean out the pests M. W. L. Aisthorpe, Dr. the committee decided to Hepplewhite and eGorge W. Edthe termies unmolested for wards. despite the fact they years Other committees named pubthreatened wreck what licity: George Jones, H. CampKinley described Price, O'Brien and of the "Iowan invasion.' An investigating committee whose duty it will be to secure all infarmation that will be of value in Seen And furthering action was named. Members are Dr. Meyers, Chiapella, Justin Jeffery, Hugh Heard Baber and Louis Day. The membership committee consists of Westfall, NELL FABRIS, disgruntled. Thompson, John Frank Martenette, H. Johns, Frank ELEANOR CUMMINGS grimacMoore, Max Weniger, H. Hintz, ing at friend. W. H. McAnarlin, Bert Loomis, Priel, Harvey Breedlove, GAIL MOORE and CHIEF TOSchwein, Johnson, O. Dixon VEE in street corner conference. and Dave Boyd. Goldstein opened the meeting PAUL H. YOUNG boosting for explaining the purpose of the band concert tonight. organization and pointing out the differences between the organizations of the People's and the First National banks. He declared that no information regarding the conditions of the banks or the loans What is the significance of the made by the banks is available to bank sponsors' and depositors' the public and because of this multaneous activities? cannot tell how the sort of bull and bear movedepositors Continued on Page Column ment.

4. May 6, 1933 The Chico Enterprise Chico, CA

Article from The Chico Enterprise, May 6, 1933

Click image to open full size in new tab

Article Text

Opinion Split on Bank Situation (Continued from page 1) start a new National Bank here with view of making deposits of both the First National and Peoples Banks available. George Edwards expressed a similar thought Dr. E. L. Meyers declared that the committee which had gone to San Francisco Tuesday apparently had done all it could to solve the bank situation here. He suggested that they be given a chance before any. hasty action be taken by the depositors committee Hugh Baber expressed the same Goldstein replied that the only organized group which had worked on the situation thus far was composed of directors and stockholders and that he had observed that in other instances national banks had been obtained when depositors of defunct institutions got after the authorities. Bevins As Depositor Earle R. Bevins responded that he had been working with the group headed by Attorney Bond ever since an effort had been made to reopen the local banks and that he was only a depositor in both, owning no stock in either and not director of either. He said that he believed every possible effort had been made to start a national bank here but that the federal authorities seemed hard to reach. and were slow in responding to a movement of this sort. What the depositors here need is im mediate action to put money into circulation, Bevins continued. and the state authorities had shown willingness to cooperate in this regard immediately Reopening Feasible Frank M. Moore who also went to San Francisco with Attorney Bond Tuesday remarked that both state and federal banking authorities had been consulted at the meeting and that the most feasible plan was to open the Peoples Bank immediately as a state bank The First National Bank is bound to have a receiver appointed and if we can get the Peoples Bank started as a state bank, that will do away with the expense of receivership for it and you all know that receivership costs a lot of money which will necessarily have to come out of the deposits, Moore said. "There was a federal reserve man present at the meeting and he told us it would be very easy to change from state to national bank if that were desired He fur ther said that no other federal charter would be issued in Chico if a state bank were started here as outlined by Attorney Bond. Moore closed his remarks with statement that the depositors of both banks will be much better off if state bank 18 started here Only Three Directors Attorney Bond observed that Goldstein was in error when he said that only directors and stockholders had worked on the situation thus far He said: As matter of fact there were about 20 men who constituted self-appointed committee that had met with us to attempt to do something for the good of the depositors of the banks and the community In this group there were only three directors SO far as can recall am not bound by either plan as a matter of fact I should prefer a national bank by all means and this state bank plan of ours was only an alternative to get some immediate action to relieve the distress caused by the delay in granting the original petition want to do whatever is best for the community but it is action that we need right now, Bond Goldstein asked why the Sacramento depositors had passed up plan to get state bank capitalized at $500,000 and had organized to secure capitalization of, $1,250,000 with the promise of similar amount from the Reconstruction Finance corporation and the Federal Reserve bank Leave R. C. Alone Lee Richardson said he had been to S. F. several times on this matter and had concluded from what he had learned that it was far better for the depositors if the Reconstruction Finance corporation and the Federal Reserve banks were let entirely alone They demand all the securities and interest at 5 1-2 or six per cent which must be paid before the depositors get anything In replying to Goldstein's question relative to the Sacramento bank. Bond said that the People Bank was capitalized for $100,000 which the 100 per cent assessment to be levied against stockholders and the money otherwise the Reconstruction Fin

5. May 6, 1933 The Chico Enterprise Chico, CA

Click image to open full size in new tab

Article Text

History Of City Library In series of articles to appear Intervals in The Enterprise brarian. will outline the history and velopment the Chico City Library. The first of these articles appears below. The first librarian in the city of Chico library and reading room was June 30. 1879 when Mrs R B. Gumar was hired by G. M. Hickman, secretary of the board. at a salary of $25 per month. At the next meeting, July 3. 1879. contributions totalling $42.50 were pledged by the 54 subscribers then enrolled. The secretary in his minutes for this meeting comments that $13.50 was collected in advance and that $2 remains unpaid "some of which is doubtful. There seemed to be difficulty even in those days in getting sufficient funds to keep the new projet going and at meeting of the directors on July 16, 1879. the city was divided into three districts for a drive to obtain more A. A. Hibbard was to canvass the district from First to Second street: J. A. Thompson was to solicit the district from Second to Third street and G M. Hickman was to take all the city south of Third street. In addition. Hibbard. as secretary was instructed to appear before the town trustees to petition for monhly allowance of $10. Hibbard was also instructed to procure a suitable contribution box for the reading room' and a suitable sign. At the next meeting however Stcretary Hibbard reported that he had interviewed several of the town trustees and ofter his report "the matter was postponed indefinitely. He did however, procure collection box but asked for and was granted more time to obtain suitable sign. ance corporation and the Federal Reserve help were not needed here. To get such help would mean additional delay and more expense to the depositors. Both state and federal banking officials are hardboiled and will not submit to any sort of influence. They have their rules and regulations which will not yield to any given set of conditions. Quick Action Needed Dr J. G. Hepplewhite said that he was not depositor in the Peoples Bank and that his money was tied up in the First National but if it is possible to get immediate action by opening the Peoples Bank as state institution he was all for it "What we need is action now to release depositors said. A. Thompson argued that the depositors had organized for American Magazine specific purpose and that was to find out what had caused the de- Collier's Weekly lay in the original plan to open a new national bank here. That Invention seemed to be the logical thing to do to liberate deposits in both Red Book Magazine banks and it might be well to Review of Reviews see if the First National bank might not be opened instead of the Parents' Magazine Peoples Bank or some steps taken Physical Culture to liberate the deposits in both banks since the First National Junior Home had the largest number of depositors. He suggested that the committee go on to Sacramento and learn what could. Dr. Meyers then made the motion that the committee proceed to Sacramento keeping in mind the necessity for speed in whatever steps were to be taken, to help the local situation. Liquidation Serious Clarence L. Price suggested that he had had some experience with liquidation of insurance companies Here it is and that liquidation of two banks in Chico is serious matter. "I understand that if new bank is established here both the Peoples and First National will go into the hands of receivers and happen to know that is a costly operation. Bond called to the attention of the group that the overhead expenses of both banks, salaries, etc. were still going on and had been since they had been placed in the hands of conservators. They are operating merely for accomodation of new depositors and cannot use one cent of these deposits to earn anything he said. There is no prise. money coming in except possibly some interest on mortgages and every moment of delay is being paid for by the depositors since all expense incurred under the conservator system must come out of the deposits, he added. Peoples Bank In Better Shape Replying to direct question Moore told the group that the Peoples aBnk was in better condition than the First National, the latter being 39 per cent liquid, according to the bank examiner's Moore also said that he was informed that if a new national bank were established here an outsider would be sent to run the bank, according to a statement made to him by one of the federal bank At this point Chairman Pfeiffer put Myer's motion which was carried Shortly afterward George Edwards, Charles Collier, Fred Pfeiffer, Frank Kottkamp, F. M Porter and J Oscar Goldstein left for Sacramento where they had evening appointments with bank officials and others. Goldstein said they would attempt to return today in time to exactly as represented. meet at the city hall a o'clock report what they had learned Later the depositors may call a meeting at Memorial hall to explain the plans in detail, Goldstein said,

6. July 25, 1933 Enterprise-Record Chico, CA

Article from Enterprise-Record, July 25, 1933

Click image to open full size in new tab

Article Text

JAS. LANG TO ASSUME AUGUST FIRST Depositors' Request For Local Man Refused by Banking Head James Lang of San Francisco, member of the liquidating staff of the state superintendent of bank's office, has been appointed receiver for the Peoples Savings & Commercial Bank, Edward Rainey, state bank superintendent, informed The Record last night. Lang. now on a vacation after year and half spent in liquidating a bank at Holtville, Imperial Valley, will assume the receivership of the Chico bank about August or shortly thereafter. Rainey announced. LOCAL RECEIVER DENIEDAppointment of the staff man was made over field of candidates, one of whom was recommended by the Chico Depositors Protective Committee. In a letter to M. Pfeiffer, president of the association, Rainey wrote: 'San Francisco, Calif. "July 21, 1933. "Mr. F. M. Pfeiffer, president, "Chico Depositors Protective Assn. "Chico, California. "Dear Mr. Pfeiffer: "Replying to your telegram of July 20th: regret I can not appoint any of the local men recommended to me by various endorsers. Successful liquidation requires especial experience and while each of those recommended has general experience, none has what require in this case. am, therefore, transferring an experienced member of liquidating staff to this special deputyship ASKS COOPERATION"You will find him efficient and thoroughly acquainted with the work of liquidation. As soon as he can be detached from his present work he will assume the new duties to which have appointed him. request the assistance and cooperation of your committee when the active liquidation begins. "Very truly yours, "Superintendent of Banks." Pfeiffer last night issued a statement saying: COMMITTEE REGRETS"Our committee regrets very much that we were unsuccessful in getting a local man appointed receiver for the Peoples Saving Commercial Bank. However, we feel had we had the proper cooperation from certain sources we would have been successful in getting the man that we recommended." The appointment of F. M. Porter of Chico as receiver for the First National Trust & Savings Bank was made at Washington, D. C., last week upon the recommendation of the depositors' association.

7. August 15, 1933 Oroville Mercury Register Oroville, CA

Article from Oroville Mercury Register, August 15, 1933

Click image to open full size in new tab

Article Text

Receiver Arrives For Peoples Bank CHICO James Lang has arrived here from Holtville. Imperial Valley, and has taken up his duties as receiver for the People's Savings & Commercial Bank. Lang, whose home is in Los Angeles, recently completed liquidation of a defunct bank at Holtville. He was unable to estimate how long the receivership of the Chico bank will require. JACK GILBERT returned yesterday to Berkeley to continue his studies at the University of Callfornia.

8. August 15, 1933 Enterprise-Record Chico, CA

Article from Enterprise-Record, August 15, 1933

Click image to open full size in new tab

Article Text

ASSUMES RECEIVER JOB James Lang has arrived here from Holtville, Imperial Valley. and has taken up his duties as receiver for the People's Savings Commercial Bank. Lang, whose home is in Los Angeles, recently completed liquidation defunct bank at Holtville. He was unable to estimate how long receivership of the Chico bank will require.