The Washington times., 1906-10-24
Failure Said to Be Due to
Loans to National In
VeStment Com /
pany-
OFFICIALS PLAN
TO PAY DEPOSITS
Claim That Bank Examiner
Was HaSty, AS Amount
of Cash on Hand
Was Large.

was Large.
The Peoples Savings Bank was
closed this morning by direction of the
Comptroller Of the Currency upon the
report Of National Bank Examiner
Owen L. Reeves, jr., showing the insti-
tuition TO be in an insoIvent condition.
The resources and liabilities, as
shown by the last report of its condi-,
tion, made to the Comptroller at ths,
close Of business September :, 1906.
were S2Io,s6s.56 each.
John W. SchOfeld has been appointeds
receiver.
May Reopen It's Doors.
II was stated by Comptroller Of ths
/ Currency Rtdgely, soon after the bank
! had been closed. that he had already
! been in conference with some Of the
J stockholders and directors in the bank
[ with reference 10 plan they had al
| ready developed, OF TeOpening the insti<
| tuition, and assuring immediate payment
4 OF depositors. This conference Was held
/ al the ComptroIler's office, and aside
/ from the foregoing Eotbiu~ could be
r. frned of ta- results. .-iie Comptroller
it.-eaed that there We're some st.onz
financial men interested. R.ieh
good reason for the hope that Il
tuition may be reODened Tie
| trOllers statement added:
Large Leans to One Cone
+yor,NFa -s.g,l
ings Bank, closed by the NatloI
Examiner this morning, is me
10 very largo loans made 10 tue r,a-
tonal Investment Company, Of which 5.
j. Masters is president
Mr. Masters was formerly president
OF the Peoples Savings Bank. and these
loans were made during mis- sdminis-
tration- They are an inheritance OF
the present management. who claim not
to be 10 blame FOR them.
Some OF The present directors OF
! the bank have a movement on foot
/ looking 10 the raising of enough addi-
tional funds &C - once pay OF all the
Z depositOrs. This plan is now IN con-
sideration. and VIII probably be decided
/ during the day
The Peoples Saving Bank has been
running with "A very strong reserve.
/ and the receiver finds on hand. in cash
I OF due from other banks over 20 per
cent Of their deposit liabilities"
Crowd at Bank Doors.
Passersby at ei0 Fourteenth street. the
| home OF the hank. were much surprised
| today to see a notice posted on the
| door stating that the Comptroller Of the
! Treasury had taken charge.
Soon after the usual hour for the bank
/ TO open a stream of people. which stead
/ ily Increased as the day wore on, con-
gregaIed in front Of the building and
discussed the matter, seeking infOTma-
1 tion from everyone believed TO be pos
/ sessed of a scrap Of news. The door
/ of the bank was kept locked. but Occa-
/ siOnally some official was allowed 70 en-
I ter, and when anyone emerged he was
eagerly besieged for information. The
! officers Of the banak referred the ma
I jority OF inquiries TO the receiver.
Bank Officials Claim Hasry Action.
| The officials Of the bank were much
wrought up over the action OF the ex-
aminer. claiming that the step taken
was entirely unnecessary. and that It
was done hastily and without due con-
| sideration They claim that Al the close
I Of business last night they had a de-
post OF $4,000 in actual cash, and nat
| the entire deposits. which amOu-
1 SlIS, 600, are amply secured. The
ssets alone represent about Il
they claim that over $4,000 are Oy,
by persons directly identified with
/ bank. and that the amount OF cash on
hand would be almost sufficient TO pay
/ of the entire balance.
! They claim also that the assets are
absolutely good and that no dep0sitor
/ or stockholder viii lose a penny.
The statement is made by an offlC Z
/ that only last week $125 per share was
offered for the control OF the bank. and
/ that It is believed that OF the entire as
sets two notes aggregatlnE 5000 are all
that could be considered doubtful The
/ total number of depositors is placed at
! 3I65 in amounts running from 81 10 $50
and embracing a large number of the
working classes. and In many cases the
savings Of children.
The claim OF the examiner that GER
tain securities were not satisfactory Is
stated by Cashier kinnear 10 be not
well founded as one debtor toWhon OBJ
lection was made. Il is stated. has Of
fered TO deposit the full amount in cash
within twenty-four hours.
History Of Bank.
The Peoples Savings Bank. originally
started by s. J. Masters, and located
at Ninth and streets in the Warder
building was removed 10 its present
location in June. 1905. the building pre-
viously occupied by the American Ma
tionaI Bank. The capital which had
been previously placed at $4,000 was in
creased to 100000, and a number of
we'll li-knownbusiness men became asso-
ciated with the bank.
In a printed statement. under date OF
May 3, last showing the condition OF
! the bank. the deposits are given at ST.
16e5e while the capital and surplus was