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Receiver Now Has Office In Linwood (Continued from page 1) The National Band of Lynwood closed its doors and the liquidation of this Bank was also assigned to Mr. Heathcote. In order to cut down the overhead expense of liquidation, the Receiver has now discontinued the office in the Beaux Arts Building and has consolidated all his work in the banking room of the former National Bank of Lynwood at 11316 Long Beach Boulevard, Lynwood, this being located about two miles South of Huntington Park. It is pointed out by Mr. Heathcote that these developments have resulted in very greatly reducing the cost of liquidation of the South Pasadena National Bank, not only in the elimination of rent, telephone, etc., but also in the matter of salaries, inasmuch as the majority of these are now charged against The National Bank of Lynwood liquidation. As costs of liquidation are first charged against collections, this information will prove of interest to creditors of the South Pasadena National Bank. The Receiver points out that he is prohibited by Government Regulations from expressing opinions in regard to payment of future dividends. Up to this time 80 per cent has already been paid to creditors of the failed South Pasadena National Bank and further collections are being made from time to time. It is pointed out by Mr. Heathcote that it takes over $40,000.000 to pay a 10 per cent dividend and that particularly in view of the present economic conditions, it is no easy matter to collect $40,000.00 in small amounts from a large number of debtors, many of whom have become insolvent, or nearly so. Sortly following suspension of the bank, a Stock Assessment of 100 per cent was levied and upon which approximately $76,000.00 was collected by the Receiver. Suit was started and judgments obtained by the Receiver against most of those Stockholders who were unable to pay the assessment when levied. In addition to the $76,000.00 collected by the Receiver from Stockholders, he was also successful in concluding very complicated negotiations with Directors of the failed bank, as a result of which, the Receiver obtained from said Directors a settlement of $94,000.00. In other words, this represented a collection by the Receiver of approximately $170,000.00, which was not on the books of the Bank at suspension. Had it not been for this collection by the Receiver, it would not have been posible to have paid more than possibly 40 or 50 per cent to creditors up to this time. While it may not be possible for the Receiver to pay a further dividend, in the near future, nevertheless, the work of liquidation is proceeding steadily and collections are being made by the Receiver from time to time, even though in many instances this has been as a result of legal action or other drastic steps taken by the Receiver.. A good many former depositors or other creditors of the South Pasadena National Bank are writing or telephoning to the Receiver in regard to possible future dividends and it is pointed out by Mr. Heathcot that no good pupose can be served by this, inasmuch as all creditors will be notified b ymail whenever another dividend becomes possible.
