Commercial National Bank (Washington, DC)

View Charter #7446 on SPMC View balance sheet

Episode Information

Episode UID
744601598
Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
74460 national
Charter Number
7446
Start Date
February 27, 1933
Location
Washington, District of Columbia (38.895, -77.036)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
3dcb00612be01414

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Fed/other loan, Public signal of financial health, Capital injected, Full suspension, Books examined

Receivership Details

Depositor recovery rate
70.0%
Date receivership started
1933-02-28
Share of assets assessed as good
42.6%
Share of assets assessed as doubtful
50.5%
Share of assets assessed as worthless
6.8%

Description

Controller of the currency closed the bank Feb 28, 1933; receiver Robert C. Baldwin appointed.

Events (5)
1. October 19, 1904 Chartered
Source
historical_nic
2. February 27, 1933 Run
Cause
Bank Specific Adverse Info
Cause Details
Large, abnormal withdrawals in days before closure as depositors withdrew funds; cash on hand fell sharply by Feb 27.
Measures
Depositors obtained statements; some depositors removed funds and placed in safe deposit boxes; bank officers and depositors later formed committees to seek reorganization.
Newspaper Excerpt
there had been abnormal withdrawals from the Commercial National Bank
Source
newspapers
3. February 28, 1933 Receivership
Source
historical_nic
4. February 28, 1933 Receivership
Newspaper Excerpt
Commercial National Bank ... which is now in receivership; Robert C. Baldwin, receiver of the bank, issued ... statements to depositors; receiver named Robert C. Baldwin in articles thereafter (multiple articles noting Baldwin as receiver).
Source
newspapers
5. February 28, 1933 Suspension
Cause
Government Action
Cause Details
Bank was closed by order of the Comptroller of the Currency/controller of the currency and placed in receivership.
Newspaper Excerpt
he went to the bank for work as usual, and found it closed by order of the controller of the currency
Source
newspapers

Newspaper Articles (21)
1. March 17, 1933 Evening Star Washington, DC
Article from Evening Star, March 17, 1933

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Article Text

BANK OFFICER SUES FOR FUNDS PLACED IN SAFETY DEPOSIT (Continued From First Page.) requiring the receiver to show cause why the money should not be turned over to him as executor and to decide whether the bank or the society is entitled to the funds. Justice Daniel W. O'Donoghue set March 28 as the date for the hearing on the petition. The will directed that $20,000 be paid to a hospital at Fort Yukon, Alaska, but the hospital was not incorporated and could. not accept the money. Withdrew Funds. The court ordered it with interest turned over to the society which operates the hospital. After drawing the check Smith transferred the amount it called for from his savings account as executor to his checking account as executor. In his petition, Smith said: "For many years your petitioner has been employed by the bank in charge of the savings department with the title of assistant cashier. He had knowledge of the fact that banks in several States had been closed, and was informed that there had been abnormal withdrawals from certain banks in the District and had personal knowledge that there had been adnormal withdrawals from the Commercial National Bank. On the morning of February 27 he became apprehensive that all banks in the District might close and in order to protect the interest of the beneficiaries of the estate withdrew about $9.000 in cash, the same being the entire balance to his credit as executor in a savings account. and later on the same day withdrew the $20,233.42 from the checking account." Both sums were placed in the safe deposit box which already contained various notes and other property of the estate. Found Bank Closed. Smith told the court he was not a general executive officer of the bank. that he was not a member of the board of directors, that he was not informed as to the bank's policies and that on the day of the withdrawals he did not know the bank was insolvent, nor that its closing was in contemplation. On the morning of February 28. he said. he went to the bank for work as usual, and found it closed by order of the controller of the currency. Some time later. he said. he learned that the check had been returned unpaid to the missionary society. On March 13. he applied to Baldwin for access to the box, but this request was refused. The refusal was on the theory that the transfers violated a section of the United States code relating to transfers made in contemplation of insolvency, or with a view to preferring one creditor to another. Smith says the transfers were made. not with any intention of violating the law. but to carry out an order of the court to safeguard the trust funds. The petition was filed through Attorneys G. B. Craighill and B. D. Boteler.

2. March 27, 1933 Evening Star Washington, DC
Article from Evening Star, March 27, 1933

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ELLIS TO ANNOUNCE DEPOSITORS' GROUP Col. Cooper Says Commercial National Bank Committee Will Be Named Soon. Col. Wade H. Cooper, president of the Commercial National Bank, which is now in receivership, stated this afternoon that the names of those who will compose the Depositors' Committee of the bank will be announced by Wade H. Ellis. chairman of the recent mass meeting at the Mayflower Hotel, within the next day or two. Mr. Cooper added that he and Chairman Ellis had received many suggestions during the past few days and would be glad to receive further suggestions. either as to the personnel of the committee or as to any particular plan which any depositor may have in mind. The mass meeting of depositors lot the Commercial National was held on Saturday evening, March 18. The meeting was addressed at length by Col. Cooper and it was voted that Depositors' Committee be formed to work for the reorganization and reopening of the bank. The committee was to be namedaby Chairman Ellis.

3. April 12, 1933 Evening star Washington, DC

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COMMERCIAL BANK STATEMENTS DUE Depositors With Checking Accounts May Obtain InTomorrow. Baldwin. receiver of the Bank, the depositors statements of their commercial accounts. tomorrow these the the cancelled checks will turned to the customers time. daily for the taken the here these now be called for in the near statement today, Receiver of the Commercial National Bank Thursday April doors the bank will o'clock, the the depositors the depositors checking accountspurpose of obtaining February of Statements only are be "nished and the canceled checks will be for present savings departwill given balancing their passbooks and their claims, other Bank of Advanced Stage Reached. was taken the financial district mean that an stage closed just before the wide was declared by PresiRoosevelt Commercial National had about 20,000 but checking accounts concerned day's will be before claims can filed liquidation point where the first payment to depositors Wade Cooper president of the Commercial at the time the bank reopened, action receiver shows that progress has been made toward any resumption of business.

4. April 13, 1933 Evening Star Washington, DC
Article from Evening Star, April 13, 1933

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Article Text

STATEMENTS ISSUED BY COMMERCIAL BANK Depositors Get Some Idea of How Their Accounts Stand. Many of the 20,000 depositors in the Commercial National Bank visited the bank today and obtained statements showing how much money they had on deposit in checking accounts when the institution suspended business on February 27. Shortly after the doors were opened the lobby was filled with former customers anxious to find out just how they stood. While their passbooks told the story in a general way, they did not know just how many of their final checks had been cashed before the bank closed. The receiver, Robert C. Baldwin, announced yesterday that the Commercial National would be open today for the obtaining of this information on commercial accounts. He expects to have similar information ready for savings depositors in a short time. After all these statements have been given out, the next step will be the filing of claims by the depositors. That date has not yet been fixed. Depositors of the Park Savings Bank will meet this evening at the Mount Pleasant branch of the Public Library to hear a report from a special committee on the bank's financial condition. J. W. Thompson of 3155 Nineteenth street, a retired Interior Department employe, is chairman of this committee. The chairman hopes to have a statement from the conservator, Richard Hargreaves, which will give the depositors some idea how they stand.

5. April 28, 1933 Times Herald Washington, DC

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BANK TO FIGHT $30,000 SUIT A denial that T. Blackwell Smith, assistant cashier of the Commercial National Bank, is entitled to $30,031.09 now held by the institution was made yesterday in District Supreme Court by Robert C. Baldwin, the bank's receiver, in answer to a suit for the money instituted by Smith. Smith, as executor of the estate of Gertrude L. Hoffman, to whom the money belonged. withdrew the funds on February 27, the day before the bank closed, and placed it in a safe deposit bank. The receiver, later, refused to turn over the money and Smith filed Baldwin alleged Smith was an officer of the bank, knew the institution's solvency was in peril by large withdrawals, and by his action sought to make himself a preferred creditor in violation of law. Baldwin said Smith had acted similarly in withdrawing $853 on deposit in another case, and the bank also refused to turn the money over to him. D. C. CADET PRAISED Edgar Morris, jr., of 5242 Colorado Ave., cadet colonel in the Clemson College military corps, was commended by Major William Spann, as the result of a review of drills at Clemson, it was announced yesterday.

6. April 28, 1933 The Washington Times Washington, DC
Article from The Washington Times, April 28, 1933

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BANK TO FIGHT $30,000 SUIT A denial that T. Blackwell Smith, assistant cashier of the Commercial National Bank, is entitled to $30,031.09 now held by the institution was made yesterday in District Supreme Court by Robert C. Baldwin, the bank's receiver, in answer to a suit for the money instituted by Smith. Smith, as executor of the estate of Gertrude L. Hoffman, to whom the money belonged, withdrew the funds on February 27, the day before the bank closed, and placed it in a safe deposit bank. The receiver, later, refused to turn over the money and Smith filed suit. Baldwin alleged Smith was an officer of the bank, knew the institution's solvency was in peril by large withdrawals, and by his action sought to make himself a preferred creditor in violation of law. Baldwin said Smith had acted similarly in withdrawing $853 on deposit in another case, and the bank also refused to turn the money over to him.

7. May 9, 1933 The Washington Times Washington, DC
Article from The Washington Times, May 9, 1933

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COMMERCIAL ASSETS DIP $1,630,000 Bank Figures Showing Decline in 2 Months Based on "Book Value" Only Assets of the Commercial National Bank shrank $1,530,782 in the two months intervening between the last call of the Comptroller of the Currency on December 31,1932, and the date on which the bank suspended operations, February 27. This figure is obtained through comparison of "book values" placed by bank officers on the two dates. The assets of the Commercial National totaled $16.385,660 at the end of the year, according to official statement. The assets on February 27, at the close of business that day, totaled $14,754,877.56, according to a statement made today by Robert C. Baldwin, receiver. Book Value Only Baldwin in his statement included a note stating: "The value of assets set forth are book values and do not represent actual values." It is believed that filing of claims against the bank will begin about June 1. Comparison of the two statements shows that "cash on hand" shrank from $1,466,330 the last day of 1932 to $379,571.77 at the close of business February 27, a loss of $1,086,759. This sharp loss, it is conjectured, occurred during the last few days that the bank was open when depositors withdrew large amounts. Baldwin To Sell Baldwin, as receiver, has been authorized by a District Supreme Court order to sell securities of the bank in the liquidation process. Condition of the bank as of December 31, 1932, was shown as follows: ASSETS $4,152,220 Loans and discounts 6,768,730 Bonds and securities 3,998,380 Miscellaneous 1,466,330 Cash items $16,385,660 Total assets LIABILITIES $1,000,000 Paid up capital 629,590 Surplus and undivided profits 11,302,620 Total deposits 3,453,450 Other liabilities $16,385,660 Total liabilities Current Statement Following is a copy of the statement issued today by Robert C. (Continued on Page 2, Col. 1)

8. June 4, 1933 Evening Star Washington, DC
Article from Evening Star, June 4, 1933

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of an extra hour in the late afternoon during which the bank will be open for them, it was announced yesterday. Robert C. Baldwin, receiver of the bank. issued a formal statement in which he said that "for the convenience of Government employes only. who are depositors in the Commercial National Bank of Washington, the doors of the bank will be re-opened from 4:30 p.m. until 5:30 p.m., the first five days of

9. June 29, 1933 Evening Star Washington, DC
Article from Evening Star, June 29, 1933

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Treasury Department Office of the Comptroller of the Currency Washington D. C. May 29 1933 Notice is hereby given to all persons who may have claims against "The Commercial tional Bank of Washington." District of Clumbia, that the same must be presented to Robert C. Baldwin, Receiver. with the legal proof thereof within three months from this date or they may be disallowed. J. F. T. O'CONNOR. Comptroller of the Currency.

10. July 13, 1933 The Washington Times Washington, DC
Article from The Washington Times, July 13, 1933

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PERCENTAGE OF PAYMENT NOT KNOWN (18,000 Depositors Will Get Share of Funds From Closed Institution Payment of a dividend to the approximately 18,000 depositors of the suspended Commercial National Bank will be made about October 1, it was learned today. Amount of the dividend was not made known. In a report to the Treasury Department by Roger C. Baldwin, bank receiver, the condition of the bank as of June 30 was disclosed. Cash collected from assets amount to $3,697,646. Assets at date of suspension, February 27, were $14,754,877.56, while total assets accounteld for June 30 were $15,756,276. On that date cash collected on stock assessments of $1,000,000 amounted to $88,334.58 and the sum total remaining of uncollected assets was $11,702,079.49. Dividend payments in October will follow the 90-day advertisement for claims of depositors now being carried on.

11. August 20, 1933 Evening Star Washington, DC
Article from Evening Star, August 20, 1933

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Treasury Department Office of the Comptroller of the Currency Washington, D. C May 29. 1933 Notice is hereby given to all Persons who may have claims against "The Commercial National Bank of Washington." District of Columbia. that the same must be presented to Robert C Baldwin. Receiver. with the legal proof thereof within three months from this date or they mav be disallowed J. F. T. O'CONNOR Comptroller of the Currency

12. September 26, 1933 Evening Star Washington, DC
Article from Evening Star, September 26, 1933

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COMMERCIAL BANK PAYS 1ST DIVIDEND Checks for 20 Per Cent Are Ready, but Depositors Arrive in Small Numbers. The insolvent Commercial National Bank today began the payment of its first dividend under direction of the receiver, Robert C. Baldwin. The dividend checks for 20 per cent of deposits were all ready, but the depositors came in small numbers early in the morning with no signs of any crowd or long lines forming. The Commercial National Bank, which closed its doors on February 28, it the largest of the insolvent institutions in this city, and the payment of this first dividend, which Receiver Baldwin has made available in an unusually short time, releases to the city more than $1,000,000. Controller of the Currency J. F. T. O'Connor in recently signing the charter for the Hamilton National Bank merger indicated that open banks in the city had requested him to delay the payment of the first dividend of the Commercial National Bank until after the Hamilton was opened. so that all banks could have an equal chance at the released funds. This was done, as the Hamilton opened yesterday and the first dividend checks from the Commercial were payable today. Baldwin is understood to have been commended by the Treasury Department for his efficiency in liquidating the Commercial National Bank and the early time at which he was able to make payable the first dividend. The bank will be open each afternoon until 5 o'clock, Baldwin said, for the convenience of depositors. This will give Government employes a full half hour after closing time to get their checks out of the bank.

13. November 7, 1933 Evening Star Washington, DC
Article from Evening Star, November 7, 1933

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DEFAULT JUDGMENT A default judgment against Ayoob M. Rizik, 1213 F street, for $126,299 in favor of the Commercial National Bank, was ordered in District Supreme Court by Justice F. D. Letts. Robert C. Baldwin, receiver for the bank, brought the suit on five promissory notes. He was represented by the firm of Sheriey cut & Wilson

14. November 11, 1933 The Washington Times Washington, DC
Article from The Washington Times, November 11, 1933

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COMMERCIAL TO PAY AGAIN Robert C. Baldwin, receiver for the Commercial National Bank, Monday will commence the payment of the second dividend of $1,850,000, representing 30 per cent, to depositors. This will make a total of 50 per cent in dividends to be paid out since the bank closed last March. Baldwin warned depositors that there probably will be considerable congestion about the teller's windows during the first few days, and requested all who can conveniently do so to postpone claiming their divideds for the first few days as the checks can be obtained at any time during the month. Claimants must take their receiver's certificates, as no dividend checks will be paid without a certificate or the orange colored receipt. Comptroller's checks will be given for each receipt so surrendered.

15. April 1, 1934 Evening Star Washington, DC
Article from Evening Star, April 1, 1934

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dating assets, it is generally admitted that there will be considerable losses, whereas under the McLeod bill, a slow orderly liquidation extending over a period of 10 years would, it is believed by the best authorities, eliminate any possibility of loss." Expanded to State Banks. The McLeod bill provides for payment to depositors of 100 per cent on their deposits, in the case of certain specified banks. The bill first included national banks, then was expanded to State banks which were members of the Federal Reserve system, and now is proposed to include also banks which borrowed from the R. F. C. Col. Cooper has been the center of prolonged litigation since he started the fight which kept the United States Savings Bank from joining the proposed Hamilton merger. At present, Col. Cooper is under an indictment growing out of his presidency of the now insolvent Commercial National Bank. Another Cooper case involving the United States Savings Bank is now pending before the Court of Appeals. in which he still is endeavoring. after a decision against him in District Supreme Court. to force the Treasury to reopen the bank. This bank is now one of the 15 banks in this city in the hands of a receiver, and is one of those understood to be under consideration for a 100 per cent stock assessment. Meantime, the complex case of the Park Savings Bank. still is pending in District Supreme Court before Justice Jesse C. Adkins. In that case. the Treasury Department's receiver, John F. Moran. has joined with the depositors committee in an attempt to sue directors for the complete losses in the bank, exceeding $2,500,000. According to reports from the reorganization committee of the Industrial Savings Bank, colored institution, the campaign to raise the $65,000 required capitalization for the new Industrial Bank will be completed during the coming week. More than 95 per cent of the stock has now been sold and plans for the reopening are being worked out.

16. April 29, 1935 The Washington Daily News Washington, DC

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Appeals to Crime Committee to Investigate Reasons Therefor The special House committee investigating crime conditions in the District today was asked to delay its report long enough to investigate the postponement by Dist. Atty. Garnett of the trial of Col. Wade H. Cooper, indicted former president of the defunct Commercial National Bank. Col. Cooper this morning conferred with crime committee investigators and left correspondence between himself and Garnett, in which he repeatedly asked for a speedy trial. It is believed this move is too late, however, as the committee's report (Continued on Page 26)

17. July 9, 1936 Evening Star Washington, DC
Article from Evening Star, July 9, 1936

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COMMERCIAL BANK LIQUIDATING LOAN Receiver Has Paid Off $3,465.000 of $4,316,000 Borrowed From R. F. C. The closed Commercial National Bank is making good progress in paying off its loan of more than $4,000.000 from the Reconstruction Finance Corp., according to the quarterly report of the receiver. Robert C. Baldwin. for the period ending June 30. Of the original loan of $4,316,000, the receiver has repaid $3,465,900. Value of remaining assets in the bank was estimated at $1,918,429. including substantial real estate holdings. Cost of liquidation was shown to be $219,601.64. as compared to the sum of $498,214.23 collected from interest. premiums, rents and other resources, as regular income from the assets. Total assets were $14,754,877.56 when the bank closed February 28. 1933. Depositors have received dividends of 60 per cent of their original accounts, amounting to $3,360,135.75.

18. February 25, 1937 Evening Star Washington, DC
Article from Evening Star, February 25, 1937

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NEW COMMERCIAL RECEIVER NAMED Hardee to Succeed Baldwin, Who Is to Re-enter Business. The new receiver of the Commercial National Bank, one of the largest closed banks in the District of Columbia, is to be former Gov. Cary E. Hardee of Florida, now receiver of the Federal-American National Bank and Trust Co. here. This was learned late yesterday, following the resignation of Robert C. Baldwin, who has been receiver in charge of the Commercial since it closed February 28, 1933. Baldwin has resigned to re-enter business. Formerly he was receiver for the Treasury of a bank in Lynn, Mass.,

19. March 11, 1937 Evening Star Washington, DC
Article from Evening Star, March 11, 1937

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OLD BANK OFFICES WILL BE VACATED Renters of Commercial National Safe Deposit Boxes Get 30 Days' Notice. Planning to vacate the old offices of the closed Commercial National Bank at Fourteenth and G streets, Receiver Cary A. Hardee has notified renters of about 400 safe deposit boxes that they must be vacated within 30 days. If the boxes are not emptied, he pointed out, they can be drilled open and their

20. July 26, 1937 Evening Star Washington, DC
Article from Evening Star, July 26, 1937

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All of the above persons are requested to call at the office of The Commercial National Bank, 14th and G Streets N.W., immediately for their property. In the event that boxes are not released on or before Tuesday, August 17, 1937, I will enter same and remove contents. Should any person know the whereabouts of any individuals listed above I will greatly appreciate that information. CARY A. HARDEE, Receiver.

21. March 23, 1941 Evening Star Washington, DC
Article from Evening Star, March 23, 1941

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ruling, and have 20 days to decide whether to appeal. If and when the property is transferred to Mr. Streslin, proceeds of the sale will go into the receivership, Mr. Young said, and plans will be made for concluding the receiver= ship late this fall, with final sale of remaining assets. The last dividend then will be paid out to depositors. The Commercial National Bank closed on the eve of the bank holiday in March, 1933. The building is now fully occupied. The first floor is occupied by the Morris Plan Bank, and by the Western Union, which also has three other floors. The United States Office of Government Reports rents substantial space in the structure and there are other occupants. Other offers received by Mr. Young for the building up to noon Thursday included: $550,000, by Philip Milestone and $560,000 by Otis B. Kent, both of this city.