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THREE CALIFORNIA BANKS CLOSE AFTER HEAVY RUNS SAN BERNARDINO, Cal.-The doors of three banks were closed today following heavy withdrawals, assertedly as the result of malicious rumors regarding their solvency. A run started on a fourth bank, the American National, jafter the San Bernardino National,*the County Savings Bank and the First Bank of Highland, six miles from here, were closed.
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San Bernardino Banks Closed SAN BERNARDINO, June 18. (U.P.)-The doors of three banks were closed today following heavy withdrawals by depositors, assertedly as the result of malicious rumors regarding their solvency. A run started on a fourth bank, the American National bank, after the San Bernardino National, the County Savings bank and the First Bank of Highland, six miles from here, were closed. Officers of the American National said they would remain open and pay all depositors. Superintendent of Banks Edward Rainey announced that the County Savings bank would probably open within a few days and the San Bernardino National soon after Police had been investigating a "whispering campaign" for several days, since bank officers reported rumors had been circulated by telephone, frightening depositors. WASHINGTON, June 18. (U.P.)The comptroller of the currency's office today said that M. V. Stendrup, national bank examiner, win handle affairs of the San Bernardino, Calif., National Bank until a receiver is appointed. Officials said it was better for the bank to close its doors and liquidate, than to continue operations and run itself into a worse condition. Deposits on the date of closing were listed by the examiner at $1,100,000 and total resources on February 1, 1932, at $2,096,168.
RUN ON BANK LAID TO COMMUNISTS' WORK SAN BERNARDINO, June 18. (UP)—The county grand jury was called today to meet next Tuesday to investigate acts of asserted communists who started a run on the San Bernardino National bank which caused its closing yesterday. Dr. M. J. Sweeney, Redlands, foreman of the inquisitorial body, declared that for the past ten days there had been an asserted movement on foot to undermine the bank's financial structure. More than 1000 persons were called on the telephone and warned to withdraw their funds "because the bank is failing," Dr. Sweeney said. He declared the movement had been traced directly to communists. A run had been made on the American National bank yesterday and today, but all depositors were promptly paid and the bank weathered the storm. The Federal Reserve bank of Los Angeles came to its aid with cash.
BUSINESS Definite Steps Will Be Taken When Surveys Finished by Federal, State Men Plans for the reopening of the San Bernardino National bank and the San Bernardino County Savings bank were launched yesterday. Until surveys completed by Federal state banking representatives there be formal statement the plan of procedure, was indicated. That the community demands the reopening of both banks and will support enthusiastically such movement apparent. While no committee organization tempted there were strong indications that business interests and others immediately ganize support the reopening movement. Support Assured Bank Executives Roberts, John C. Ralphs, Smith, Shay and others the bank received countless support for any movement that undertaken secure the reopening of the banks. of both banks, from Los Angeles last night. He began plans for with directors stockholders of two outline definite that will object the has indicated that both the Federal and state banking departments anxious to be any assistance movement to reopen the One of the purposes of the FedFinance correopen banks. Hysteria Must Entirely Wiped Out The first assurance required from the by both and state authorities will for complete cooperation and the elimination hysteria. Everywhere there pressions willingness for both moral and financial support, the latter necessary, for reopening movement. Word yesterday from Californians Washington there would be unanimous support for the proposal of reopening. Both the Federal and state banking departments completed their work of organizing to handle their functions. The work of making survey the assets and liabilities the banks well underway,
S.B. Communistic Rumors and Phone Calls Before Jury Alleged communistie rumors which led to the collapse of the San Bernardino National Bank and heavy runs on two others in the Gate City were under probe today by the county grand jury, in session at the courthouse. Edward Rainey. state superintendent of banks was one of the witnesses testifying before the inquisitorial body as to his knowledge of similar communistic compaigns in various cities of the state. Since closing of the financial institution last Friday, Daniel G. Murdock. investigator for the district attorney's office has been gathering data which was presented to the inquisitors this morning. Because rumors originating in San Bernardino are principally subjects within the jurisdiction of the Gate City justice court. the jury's quiz is mainly focused on similar activities in other cities of the county, including Supervisors also met with the jury this morning to study the reports re cently discussed with the San Bernardino County Tax Coordination committee during the budget hearings held two weeks ago at the courthouse.
'Red' Probe Opened In Run On S. C. Bank SAN BERNARDINO June 21 M. Sweeney foreman of the San Bernardino County grand jury, has called a meeting of that body for today to investigate alleged propaganda against banks in San Bernardino. Dr. said he had been in formed that deliberate and definite campaign was to cause the run recently on the San Bernardino National Bank
Reds Charged Behind Run on National Bank SAN BERNARDINO June 21.-(Associated Press) Dr. M. J. Sweeney, foreman of the San Bernardino County Grand Jury, has called a meeting of that body for today to investigate alleged Communist propaganda against banks in San Bernardino. Dr. Sweeney said he had been informed that a deliberate and definite campaign was conducted to cause the run recently on the San Bernardino Na. tional Bank.
S.B. Communistic Rumors and Phone Calls Before Jury Alleged communistic rumors which led to the collapse of the San Bernardino National Bank and heavy runs on two others in the Gate City were under probe today by the county grand jury, in session at the courthouse. Edward Rainey, state superintendent of banks was one of the witnesses testifying before the inquisitorial body as to his knowledge of similar communistic compaigns in various cities of the state. Since closing of the financial institution last Friday. Daniel G. Murdock, investigator for the district attorney's office has been gathering data which was presented to the inquisitors this
BANK RECEIVER ARRIVES SOON Holders of safety deposit boxes in the San Bernardino National bank will have access to them shortly after July according to Max V. Spendrup, Federal bank examiner who is temporarily in charge of the affairs of the institution Mr. Spendrup announced that Charles Ritts, receiver for the bank, will arrive to take over his duties about July 1, and that within day or two thereafter arrangements will be made to permit safety depositors access to their boxes. Plans for reorganization and reopening of the national bank and the San Bernardino County Savings bank are reported as proceeding quietly.
S.B. Communistic Rumors and Phone Calls Before Jury Alleged communistic rumors which led to the collapse of the San Bernardino National Bank and heavy runs on two others in the Gate City were under probe today by the county grand Jury, in session at the courthouse. Edward Ralney. state superintendent of banks was one of the witnesses tes(Ifying before the Inquisitorial body as to his knowledge of similar com-
BANK RECEIVER NAMED Charles Ritt. former national bank has been appointed by the comptroller of currency as receiver for the San Bernadino, Calif., National bank. Ritt has just receivership of the bank Port Chicago, a suburb of
STARTED Stockholders and Directors of Savings Institution Meet With State Official The move launched last week by business interests of the city to reopen the San Bernardino National bank and the San Bernardino CounSavings bank was advanced yesterday when stockholders of the savings bank met with John McFall, chief bank examiner of the southern division and committee business conferred Ritt, recently appointed receiver of the national bank The savings bank stockholders with Mr. the steps necessary open savings bank, which closed after the directors the national bank acted to protect the Committee Meets With Bank Receiver that the stockholders reviewed steps which been outlined by Edward Rainey, state bank superintendent, before the reopening could be effected. No statement was issued following the meeting and probable that series will be held before definite program adopted. At the second conference, the business and professional men headed Mack. president the Pioneer Title Insurance Co., met with Mr. Ritt review the insofar as the San Bernardino National bank concerned. This institution operated under Federal charter and therefore, under the jurisdiction of the Federal bank raththan the state, is the savings bank. The national bank Max Spendrup, not yet completed his report and, probable, steps be taken until this report is filed with the comptroller of the currency,
Bank Doors Opened Week Doors of the San Bernardino National bank will opened permitting access safety Federal charge the bank. receiver also that safety boxes who the bank not be boxes. staff bank the been fixed, the
Crowds Throng San Bernardino National Throughout Day As First Payment Made Hundreds of depositors called at the San Bernardino National bank yesterday and received checks representing the first payment of dividends since liquidation of the institution started following suspension of business last June. The first dividend totals cent, close quarter of lion dollars. Ritt. bank ceiver, said yesterday afternoon he had way of estimating the amount paid out to date because compilation had been made yet. "We were crowded throughout the day, however,' he said. several times the line into the street. Hundreds of depositors their claims and received their checks." Payment of the 25 per cent dividend will not exhaust the cash hand but will leave the nucleus for the second dividend. There has been no definite information to when the San Bernardino County Savings bank. which closed at the same time the national bank, will declare its first dividend. although reportthat will be made before March
Bank Files Suit in Collection Attempt Charles receiver of the San Bernardino National bank. yesterday filed suit in court against Susie Amos to collect $6,137.65 alleged due demand note Attorney William Guthrie represents the bank
Harrison Attorney For Bank Receiver Attorney Ben Harrison, chairman the Democratic county central committee, has been pointed attorney for the receiver the San Bernardino National bank. The appointment mended Charles M. Brown Redlands and Senator McAdoo and made by the comptroller of the currency.
Funds Recovered By County San Bernardino county has with interest of the money which the county treasurer had deposit with the San Bernardino National bank before that institution closed June 1932, cording Treasurer Williams. This accomplished, Mr. Williams explained last night, by holding bonds given by the bank security for the county's deposits, until profitable could be made of small blocks those bonds. These sales have ranged from $96 to $109 bonds having value of $100 each. Not only all money deposited the San bank been recovered, interest, expense of collection, dividend also obtained. returning to the county total of which is excess the charges allowed Williams today will mail check for $157.65 the and will return $70,000 face unsold bonds which formed part security given by the bank the county treasurer for the deposits. Grave concern felt in some circles year when bond ation almost nil, county bonds had been accepted security for Williams he will have similar reports showing disposition bonds other funct banks which the county will recover fully and the receivers will be returned unsold bonds the benefit of the bank depositors.
Dividend Paid By National Bank A dividend of 20 per cent is to News be paid by the San Bernardino National Bank. the second since the institution closed in June, 1932. It will put $215,000 in circulation. Loretta Douglas The dividend makes the total dividend paid by the bank since Fairbanks, Jr Young it closed 45 per cent. Receiver -inCharles Kitt is paying the divi"LIFE OF JIMMY dend.
HUNDREDS GET FROM BANK Distribution of $215,000 Is Pushed as Depositors Receive Checks Distributing of the $215,000 dividend to depositors of the defunct San Bernardino National bank continued yesterday at the bank's offices in the Andreson building, hundreds of valley residents calling for their checks. The dividend, the second to be issued since the bank was closed in June 1932, arrived Thursday from Washington where the checks were signed in the office of the comptroller of currency. Charles J. Ritt, the bank's receiver, immediately began issuing the checks. His offices were kept open until 9 o'clock last night to accommodate the depos- AIDS SHOPPING The $215,000 dividend representing 20 per cent of the total deposits, will stimulate San Bernardino's Christmas shopping, already far ahead of any volume in recent years. The bank now has paid a total of 45 per cent of the deposits in diviand dends since it was closed. The liquidation of the bank's affairs will continue.
King Announced As Bank Receiver John E. King, editor of the Hemet News, Democrat, has been made receiver the San Bernardino National Bank. take the place Ritt. resigned. King was receiver First National Bank of Rialto.
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John E. King Dies; Was Publisher By the Associated Press. HEMET, Calif., Nov. 26.-John E. King, 68, former vice president of the National Editorial Association, died today at a San Bernardino Hospital. Mr. King had been publisher of the Hemet News since 1912 and after 1933 was receiver for the San Bernardino, Rialto and Victorville National Banks. Before coming to California Mr. King was State librarian of Minnesota from 1905 to 1911 and during three years of that time was president of the National Association of State Librarians. At various times he published the Larchmont (Iowa) Leader, the Rock