Evening star., 1934-07-09
'BR|GHTWOOD BANK.
PAYS OUT S1OO,0DO.
Unpaid Deposits of 19 Dis
trict Institutions Amount
to $4,000, 900.

With the Bank of Brightwood to-
day paying out its third dividend
amounting to about 500. 600. 1t was
learned that the 19 closed banks in
the District have total OF unpaid
deposits amounting TO about $22,-
600 900.
In q statement made public by Con-
troller OF the Currency J. F. T. O'Con-
nor it was disclosed that nearly S2l.-
900, 900 had been unpaid by Is closed
banks. but the figures omitted three
banks which still have substantial un-
paid deposits-the Franklin National
the Mount Vernon Savings and the
Industrial Savings Bank. None oi
these Is in receivership, the first two
were absorbed by the Washington
Mechanics Savings Bank. which later
became the City Bank Of Washington
and the Industrial Savings Bank still
is trying to reorganiDe.
TetaI Liability 4e,s36,64l.
The total deposit liability of the IL
receiVership banks at the time of CLOS
ing amounted to $40.836.64l, accord
ing to the controllers statement, ant
out of this these banks have paid
a total OF $1,000 ,464, leaving an un-
paid deposit liability of $20,s2T, ,177
Adding to this the unpaid liability OF
the three closed banks not listed would
bring the figure nearer $22, 900 900, IL
was believed. Details are shown In
the controllers statement published
herewith.
Efforts are being made by the con-
troller and his receivers in charge tc
liquidate the banks as orderly as pos
sible, and pursuant to this, the assess
ment of 100 per cent was levied Sat
urday on stockholders of five of the
receivership banks. oficial notices
to stockholders Of the Federal-Ameri-
can National Bank 81 Trust Co. were
being signed today by Cary A. Hardee
receiver for this institution, and will
be mailed this week by registered
mail.
Norman r. Hamilton, receiver fol
the four other banks whose stock
holders are assessed, also will push
forward the work of collecting the
assessment from shareholders In the
District National, Potomac Savings
Northeast Savings and Seventh Street
Savings Bank. The prime assets OF
all these banks were sold to the new
Hamilton National Bank merger and
it is only the So-called class B assets
which remain In the hands OF the re-
ceivers Large loans were made by
the Reconstruction Finance Corpora
tion to all of these five banks, and
the receivers have been paying of
these loans as rapidly as possible be-
fore they will be able to declare an
other dividend to depositors.
More Loans Sought.
Efforts are being made to obtain
more loans from the r. r. c., it was
learned from Controller of the Cur
rency O'Connor. Under the new bank
payoff legislation, the r. r. c. Is
authorized to make loans on values as
of normal times, instead of depressed
values. This applies also to real estate
large holding of which proved one
of the difiiculties in the case Of some
Of the closed Washington banks.
Before the bank payoff law, the r.
r. c. made loans on the basis Of cur
rent market valuation.
Speculation was rife today rs to the
possibility of new dividends from some
of the closed banks, but there was no
definite information as to when any of
the closed banks may pay another
dividend.
The Bank of Brightwood began this
morning its third dividend of 10 per
cent, for which 500 900 was available
according to Receiver Claude A. Wood
ward. This brings the total payments
to depositors Of this institution up to
SIS per cent, as they previously had
received two dividends of 20 and Is
per cent, respectively. The control
ler's statement in another column of
The Star is Of July and does not in
clude the new 10 per cent dividend
paid today by the Bank of Brightwood.