Evening star., 1933-05-23
CHEVY CHASE BANK
SALE RELEASES 50
PER CENT OF FUNDS
Purchase by Riggs Is Ap-
proved by Directors and
Treasury Officials.
BRANCH is EXPECTED
TO FUNCTION JUNE IS
Assets Not Taken Over Will Be
Liquidated to Best Advan-
tage by Conservator.

Purchase Of the Chevy Chase Savings
Bank by the Riggs National Bank,
which has been given full approval by
officials of both banks, as well as by
the Controller of the Currency and
other Treasury officials, means that de-
positors in the Chevy Chase institution
will have so per cent OF their deposits
made available to them on June IS, 1t
was announced today. On that date
Riggs National expects to reopen the
savings bank as. branch office and
offer the people of that section COM
plete banking facilities. The bank has
been closed since the Nationwide bank
moratorium when 13 local banks failed
to receive Government licenses to carry
on 100 per cent operations.
The sale of the Chevy Chase Savings
Bank to the Riggs National came as the
result of numerous conferences held
during the past 10 days between Presi-
dent Robert v. Fleming of Riggs and
John c. Walker, president and conserva-
tor of the Chevy Chase Bank. Follow
ing failure to get the suburban bank
open as an individual institution, the
directors heartily approved proposal to
join forces with Riggs. The Treasury
was in complete accord, as Government
officials have frequently expressed the
opinion that there are too many banks
In Washington.
Buy Building and Assets.
Riggs National is buying the bank
building and other assets from the
Chevy Chase Bank, the purchase being
made under the widely known "Spo-
kane plan" The assets not taken over
by Riggs will be liquidated by the con-
servator to the best possible advantage
of the Chevy Chase depositors and
stockholders.
John C. Walker, the conservator,
stated today that the negotiations
really mean that IS per cent of the
banks deposits will be liberated. IN
addition to the go per cent which Riggs
will free when the bank is reopened.
there will be another per cent avail
able. When the bank went on re-
stricted basis on March /, per cent
of the deposits were set aside in a
bailee account for the benefit Of de-
positors. which, In many cases, has not
been Withdrawn and Is still available
at any time. ID
Mr.. Walker added that the new Chevy
Chase branch of Riggs will have the
full cooperation of the Board Of Di-
rectors and 1t is expected that an Ad-
visory Board will be selected from the
present Chevy Chase membership.
"Consummation of these plans Is a
source of great qualification to me and
other officials as it makes available to
the Chevy Chase community complete
banking and trust facilities of the larg
est bank in the city," Mr.. Walker said,
THE Riggs National is glad to have
the opportunity to restore unrestricted
banking facilities to the important
Chevy Chase community" President
Fleming said today. Riggs will follow
its custom of having an Advisory Board
made up from the present directorate
Of the bank" he added.
Seven Active Branches.
Absorption Of the Chevy Chase Bank
will give Riggs seven active branches
in excellent locations. Riggs National
was established in 1886 when its
founder, William c. Corcoran, organized
the firm of Corcoran & Riggs. so that
the bank will soon round out century
of service. Riggs first established
branches in 1922, when 1t purchased
the Hamilton Savings Bank in order
to strengthen the banking situation in
sources of $75 900 900 and reported de-
posts of over $62,000,000 at the time
of the last controllers bank call
The Chevy Chase bank is capitalized
at 100000 and at the call Of the con-
troller Of the currency on December 81,
1882, 1t had total assets of 81 ,091, ,760.
Liabilities Of the bank, in addition to
its capital stock, were listed as follows
Surplus and undivided profits. $14,260;
deposits, $89o,O40; other liabilities,
$87, ,460.
The assets were listed as follows:
Loans and discounts. $478,000 bonds
and securities, 1881 ,720; miscellaneous
resources, $154,820; cash items, $107,2 ,220.