840. Japanese-American Bank (Los Angeles branch) (Los Angeles, CA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
October 18, 1909
Location
Los Angeles, California (34.052, -118.244)

Metadata

Model
gpt-5-mini
Short Digest
da04132d

Response Measures

Full suspension, Books examined

Other: State superintendent placed temporary managers in charge; bank insolvent (assets ~15% of liabilities).

Description

Multiple articles report a run on the Los Angeles branch (caused by rumor linking it to the recently closed Sacramento Japanese bank) which prompted California State Superintendent of Banking Alden Anderson to close the San Francisco main bank and the Los Angeles branch on Oct 18, 1909. A temporary official was placed in charge, and reporting indicates the institution was closed with receivership/administrative control and is unlikely to repay depositors in full.

Events (3)
1. October 18, 1909 Receivership
Newspaper Excerpt
J. W. Harper has been placed temporarily in charge of the closed bank, which is capitalized at $200,000; W. S. Vawter was placed in charge of the Los Angeles branch, while J. W. Harper is in charge of the main bank in this city. The affairs ... are in a muddled condition ... it is hardly likely that the depositors will obtain more than 15 cents on the dollar. (multiple articles).
Source
newspapers
2. October 18, 1909 Run
Cause
Rumor Or Misinformation
Cause Details
Rumor that the recently closed Sacramento Japanese bank was connected with the Japanese-American Bank, provoking large withdrawals at the Los Angeles branch.
Measures
None recorded by branch — heavy withdrawals depleted cash; prompted state superintendent action to close the branches.
Newspaper Excerpt
a run on the Los Angeles branch, which was caused by the rumor that the Sacramento Japanese bank ... was connected with the Japanese-American bank
Source
newspapers
3. October 18, 1909 Suspension
Cause
Government Action
Cause Details
State Superintendent Alden Anderson ordered the immediate closing of the San Francisco main bank and the Los Angeles branch after examination found deficiencies and following the run on the Los Angeles branch.
Newspaper Excerpt
The Japanese-American bank of this city was closed today by State Superintendent of Banking Alden Anderson
Source
newspapers

Newspaper Articles (14)
1. October 18, 1909 The Ogden Standard Ogden, UT
Article from The Ogden Standard, October 18, 1909

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Article Text

cisco concern. and having deposits of about $200,000. was closed today. The cause for the closing has not been given out, but the trouble is beHeved to have been the natural consequence of the recent failures of Japanese banks in Oakland and Sacramento. Following those failures, there were large withdrawals by depositors from the local institution A dispatch from San Francisco says: San Francisco, Oct. 18.-The Japanese-American bank of this city was closed today by State Superintendent of Banking Alden Anderson after an examination conducted by the state bank commissioners that the bank's affairs would be adjusted without drastic action but a crisis was brought on by a run on the Los Angeles branch which was caused by the rumor that the Sacramento Japanese bank closed recently by the commission was connected with the Japanese-American bank On receipt of news of a run on the Los Angeles branch Supt. Anderson ordered the immediate closing of both the San Francisco bank and its Los Angeles branch. The bank has a branch in Ogden also and a telegram was sent to the governor of Utah, by the California bank commissioners, suggesting that this be closed. State Supt. Anderson says that the affairs of the bank are in a muddled condition and that so many of the loans were made On worthless securities that it is hardly likely that the depositors will obtain more than 15 cents on the dollar. J. W. Harper has been placed temporarily in charge of the closed bank, which is capitalized at $200,000 The assets of the main branch are as follows: Loans. $371,000. overdrafts. $1,459; value of bank premises, $6,000; due from other banks, $38,000; cash on hand, $9,600; surplus. $8,500. Its llabilities are. Due to banks, $135,000; deposits, $115,500; bills payable, $104,800 The Los Angeles assets are: Loans. $266,000; overdrafts, $1,000; stocks and bonds, $4,000; bank premises, $12,000; real estate, $1,800; due from other banks, $16,000; cash on hand, $14,000. Its liabilities are: Deposits, $235, 000; bills payable, $13,800. This report was the last of the triweekly reports which the bank commissioners have been receiving from the banks since they began to watch it in August, but it is believed that a large part of the cash on hand has been withdrawn by depositors since the run on the Los Angeles branch was begun.

2. October 18, 1909 The Ogden Standard Ogden, UT
Article from The Ogden Standard, October 18, 1909

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LOCAL BANK DID NOT CLOSE BUT PARENT INSTITUTION IS CLOSED ON COAST. Japanese-American Institution is in Financial Distress-Depositors Are Nearly All Japanese. Notwithstanding the fact Ithat the San Francisco and Sacramento, California banks have closed their doors, the local bank is doing business to day. Definite information from the local bank as to what effect the closing of the California banks will have upon the business of the bank in this city, could not be learned at the bank today. The cashier is out of the city' and the employes at the bank had no authority to speak, The cashier of the home bank will not return to the city until some time tomorrow, and until that time nothing can be learned regarding the situation. Those in the bank today are not inclined to give out any information as to the relationship, If any, of the Ogden bank with the San Francisco or the Sacramento banks. There are said to be a number of white depositors in the local bank. The Japanese-American bank of San Francisco, one of he largest Japanese banks in the west, with branches in Los Angeles and Ogden, was closed today by the California state banking superintendent. The bank's assets aamount to only about 15 per cent of Its liabilities. Most of the depositors are Japanese and in Los Angeles they made such a run on the bank that It was almost depleted of its cash before its doors were closed. The Japanese-American bank of Los Angeles, a branch of the San Fran-

3. October 18, 1909 The Daily Sentinel Grand Junction, CO
Article from The Daily Sentinel, October 18, 1909

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BIG JAPANESE BANK CLOSES ITS DOORS [By Associated Press.] San Francisco, Oct. 18.-The : + Japanese-American Bank of this city and its branch instiutions at Los Angeles were closed today by the state banking superintendent. The majority of the depositors of the bank in both cities are Japanese. Recent large withdrawals by depositors had practically depleted the bank of its cash fund. The assets of the San Francisco bank amount to only about 15 per cent of its liabilities.

4. October 19, 1909 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, October 19, 1909

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JAPANESE BANK ORDERED CLOSED RUN ON LOS ANGELES BRANCH PRECIPITATES ACTION INSTITUTIONS UNDER SURVEIL. LANCE TWO MONTHS State Superintendent Says Affairs of Organizations in Muddled Condition Because of Loans on Valueless Securities [By Associated Press.] SAN FRANCISCO, Oct. 18.-The Japanese-American bank of this city was closed today by state superintendent of banking, Alden Anderson, after an examination conducted by the state bank commissioners ever since August 25. It was hoped by the commissioners the bank's affairs would be adjusted without drastic action, but a crisis was on a run on which was geles brought branch, by caused the Los by An- the rumor the Sacramento Japanese bank, closed recently by the commission, was connected with the Japanese-American bank. On receipt of news of a run on the Los Angeles branch, Superintendent Anderson ordered the immediate closing of both the San Francisco bank and its Los Angeles branch. The bank also has a branch in Ogden, and a telegram was sent to the governor of Utah by the California bank commissioners suggesting the branch there be closed. State Superintendent of Banks Anderson says the affairs of the bank are in a muddled condition, and SO many of the loans were made on valueless securities that it is hardly likely that the depositors will obtain more than 15 cents on the dollar. Temporarily in Charge J. W. Harper has been placed temin charge of the porarily bank, which was capitalized at $200,000. The assets of the main branch are as follows: $371,000 loans; $1495 overdrafts; $6000 value bank premises; $38000 due from other banks; $9600 cash on hand; $8500 surplus. Its liabilities are $135,000 due to banks: $115,500 deposits; $104,800 bills payable. The Los Angeles assets are: Loans, $226,000; $1000 overdrafts; stocks and bonds, $4000; bank premises, $12,000; real estate, $1800: due from other banks, $16,000; cash on hand, $14,000. Its liabilities are: Deposits, $235,000; bills payable, $13,800. This report is the last of the triweekly reports which the bank commissioners have been receiving from the bank ever since they began to watch it in August, but it is believed a large part of the cash on hand has been withdrawn by depositors since the run on the Los Angeles branch was begun.

5. October 19, 1909 The Salt Lake Herald-Republican Salt Lake City, UT
Article from The Salt Lake Herald-Republican, October 19, 1909

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JAP BANKS RUN AGAINST SNAG Three in California Closed— Doors of Ogden Bank Not Yet Shut. San Francisco. Oct. 18.-The JapaneseAmerican bank of this city was closed today by State Superintendent of Banking Alden Anderson, after an examination conducted by the state bank commissioners since Aug. 25 of this year. It was hoped by the commissioners that the bank's affairs would be adjusted without drastic action, but a crisis was brought on by a run on the Los Angeles branch. which was caused by the rumor that the Sacramento Japanese bank, closed recently by the commission, was connected with the Japanese-American bank. On receipt of news of a run on the Los Angeles branch, Superintendent Anderson ordered the immediate closing of both the San Francisco bank and the Los Angeles branch. The bank has a branch in Ogden also, and a telegram was sent to the governor of Utah by the California bank commissioners suggesting that this be closed.

6. October 19, 1909 The Washington Herald Washington, DC
Article from The Washington Herald, October 19, 1909

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LOS ANGELES BANK CLOSES. Japanese Gather in Excited Mob in Front of Building. Los Angeles, Cal., Oct. 18.-State Bank Superintendent Anderson to-day closed the Japanese-American Bank of this city, a branch of the San Francisco bank, with deposits of $200,000. A great mob of excited Japanese gathered in front of the building, but there was no violence. Nearly all the depositors are Japanese. The cause of the suspension was heavy withdrawals of funds due to failures of Japanese banks in Oakland and Sacramento. The managers could not furnish the reserve demanded by the State law. so the superintendent ordered the bank closed.

7. October 19, 1909 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, October 19, 1909

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JAP-AMERICAN BANK CLOSES DOORS IN FRISCO San Francisco, Cal., Oct. 18.-The affairs of the Japanese-American Bank of this city which was closed today by State Superintendent of Banking Anderson, was said tonight to be in a muddled condition. A run on the Los Angeles branch caused by the rumor that the Sacramento-Japanese Bank, closed recently by the commissioner, was connected with the Japanese-American Bank. brought on the crisis. State Superintendent Anderson said tonight so many of the loans were made on worthless securities that it Is hardly likely the depositors will obtain more than 15 cents on the dollar. J. W. Harper has been placed temporarily in charge. Thebank is capItalized at $200,000. The assets of the main branch include loans of $371,000 and cash on hand of $9.600. Its liabilities are: Due to the banks $135, 000; deposits, $115,000; bills payable, $104,800. The Los Angeles assets show loans of $266,000; cash on hand $14,000 with $16,000 due from other banks. Its llabilities are $235,000, bills payable $13.000.

8. October 19, 1909 The Evening Times Grand Forks, ND
Article from The Evening Times, October 19, 1909

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BANK CLOSED Japanese Institution Closed Its Doors After Side Run. San Francisco, Oct. 19.-The affairs of the Japanese-American bank of this city which was closed today by State Superintendent of Banking Alden Anderson were said to be in a muddled condition. A run on the Los Angeles branch, caused by the rumor that the Sacramento Japanese bank, closed recently by the commissioner, was connected with the Japanese-American bank, brought on the crisis. State Superintendent Anderson said so many of the loans were made on worthless securities that it is hardly likely the depositors will obtain more than fifteen cents on the dollar.

9. October 19, 1909 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, October 19, 1909

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BANK'S AFFAIRS MUDDLED. Loans Were Made Upon Many Worthless Securities. San Francisco, October 18.-The affairs of the Japanese-American bank of this city, which was closed today by State Superintendent of Banking Anderson, was said tonight to be in a muddled condition. A run on the Los Angeles branch caused by the rumor that the Sacramento-Japanese bank, closed recently by the commisisoner, was connected with the Japanese-American bank, brought on the crisis. State Superintendent Anderson tonight said so many loans were made on worthless securities that it is hardly likely the depositors will obtain more than 15 cents on the dollar. J. W. Harper has been appointed temporarily in charge. The bank is cap-, italized at $200,000. The assets of the main branch include loans of $371,000 and cash on hand of $9600. Its liabilities are: Due to banks, $135,000; deposits, $115,500; bills payable, $104,800. The Los Angeles assets show loans of $266,000; cash on hand, $14,000, with $16,000 due from other banks. Its liabilities are $235,000; bills payable, $13,000.

10. October 19, 1909 New-York Tribune New York, NY
Article from New-York Tribune, October 19, 1909

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JAPANESE BANK IN TROUBLE. Los Angeles Branch of Pacific Coast Institution Closed After Run. San Francisco, Oct. 18.--The affairs of the Japanese-American Bank, which was closed to-day by the State Superintendent of Banking, were said to-night to be in a muddled condition. A run on the Los Angeles branch, caused by the rumor that the Sacramento-Japanese Bank, closed recently by the Commissioner, was connected with the Japenese-American Bank, brought on the erisis. Superintendent Anderson said to-night that so many of the loans were made on worthless securities that it was hardly likely that the depositors could obtain more than 15 cents on the dollar. Practically all of them are Japanese. The bank is "capitalized at $200,000.

11. October 19, 1909 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, October 19, 1909

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ANDERSON CLOSES 2 JAPANESE BANKS Main Institution in This City and Los Angeles Branch Show Deficiency Third Branch Located at Ogden, However, Remains Open for Business The Japanese-American bank located at Post and Buchanan streets in this city and the branch at 101 South San Los Angeles, were Pedro street, of Banks closed yesterday by Superintendent Alden Anderson on account of a. defiof cash and lack of proper sefor loans made. curity ciency The *bank and its branches have been under observation for some time and as they failed to make up the deficiencies in the time alloted by Anderson he decided yesterday to close them. OGDEN BRANCH NOTIFIED Besides the main bank in this city and a branch in Los Angeles a third branch is maintained at Ogden, Utah. The officers in control of the Ogden branch were notified of Anderson's action, but did not close that institution, of the from Ogden are as tion. it is Advices out California jurisdic- to the effect that the branch in that city will remain open until further advices are received from the head institution in this city. According to the last statement of the bank its deposits are more than $700,000, with nearly an equal amount of loans. The capital stock is $200,000. $159,425 being paid up. More than $75,000 is loaned on real estate in AlaSan meda, Monterey, Francisco, Riverside, Tulare, OrLos Angeles, Imperial, ange and San Luis Obispo counties. Among the other loans are Japanese government bonds, stocks of various corporations, which are not listed in the report and warehouse receipts. DEPOSITORS EXCITED The closing of the institution in this city caused considerable excitement among the many Japanese depositors. A big crowd filled the street in front of the bank and there was much discussion, but no demonstration. Pracall of the are Their run tically nese. deposits depositors in amounts Japafrom $1 up to considerable sums. In Los Angeles the same situation prevailed. Although the closing of the bank caused considerable excitement, no demonstrations were made. W. S. Vawter was placed in charge of the Los Angeles branch, while J. W. Harper is in charge of the main bank in this city. The directors of the bank are K. Uyeda, R. Kamikawa, K. Abiko, J. Kolke, M. Takekawa, M. Minabe and Y. Maeda.

12. October 19, 1909 The Salt Lake Tribune Salt Lake City, UT
Article from The Salt Lake Tribune, October 19, 1909

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BIG JAPANESE BANK OF FRISCO IS CLOSED Has Branch in Ogden, Not Yet Affected: Depositors Will Lose. SAN FRANCISCO Oct. 18.-The Japanese-American bank of this city was closed today by State Superintendent of Banking Alden Anderson. after an examination conducted by the state bank commissioners since August 25 of this year. It was hoped by the commissioners that the bank's affairs would be adjusted without drastic action, bu: a crisis was brought on by a run on the T.os Angeles branch, which was caused by the rumor that the Sacramento Japanese bank. closed recently by the commission. was connected with the Japanese-American bank. On receipt of news of a run on the Los Angeles branch, Superintendent Anderson ordered the immediate closing of both the San Francisco bank and its I.os Angeles branch. The bank has a branch In Ogden also, and a telegram was sent to the governor of Utah by the California bank commissioners suggesting that, this be closed. State Superintendent Anderson anys that the affairs of the bank are In a mucdied condition and that so many of the loans were made on worthless securities that it is hardly likely that the depositors will obtain more than 15 cents on the dollar. J. B. Harper has been placed temporarily in charge of the closed bank. which is capitalized at $200,000, The assets of the main branch are as follows: Loans, $371,000: overdrafts. $1459: value of bank premises, $6000: due from other banks, $38,000; cash on hand $9600: surplus, $8500. Its liabilities are: Due to banks. $135,000; deposits, $115,500; bills payable, $104,800. OGDEN, Utah. Oct. 18.-Though the Japanese-American bank of Ogden is a. branch of the California institution. the local bank is still open and doing business. and the officers in control state they have had no instructions to close and will take no action until further advices are received.

13. October 21, 1909 The Mitchell Capital Mitchell, SD
Article from The Mitchell Capital, October 21, 1909

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JAPANESE BANK IN LOS ANGELES FAILS Los Angeles, Cal., Oct. 20.-The Japanese-American bank of this city, a branch of a San Francisco concern, and having deposits of about $200,000, was closed today by order of State Bank Superintendent Anderson. Practically all of the depositors are Japanese. The trouble is believed to have been due to the recent failures of banks in Oakland and Sacramento, which re. sulted in large withdrawals.

14. October 21, 1909 The Citizen-Republican Scotland, Parkston, SD
Article from The Citizen-Republican, October 21, 1909

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JAPANESE BANK IN LOS ANGELES FAILS Los Angeles, Cal., Oct. 20.-The Japanese-American bank of this city, a branch of a San Francisco concern, and having deposits of about $200,000. was closed today by order of State Bank Superintendent Anderson. Practically all of the depositors are Japanese. The trouble is believed to have been due to the recent failures of banks in Oakland and Sacramento, which resulted in large withdrawals.