Closing Rumor Triggers Rush at Savings, Loan

A rumor that a Los Angeles Chinatown savings and loan office was about to shut its doors triggered a rush by customers to withdraw savings there and at a branch in Monterey Park Friday afternoon, but a bank executive said the rumor was false and that those wanting their money could have it.

Jack Lee, board chairman of the First Public Savings Bank at 800 N. Hill St., said the rumor was “completely unfounded,” and added that he had a statement from the Federal Home Loan Bank Board declaring the institution sound. Moreover, he said, all accounts are federally insured. Lee said the firm would reopen this morning as usual.

Police Monitor Traffic

Nonetheless, when the office remained open an hour beyond its regular Friday closing time to accommodate nervous savers wishing to withdraw, five Los Angeles police cars were dispatched to control traffic and to monitor a crowd of about 200 outside the bank building.

There was also a larger-than-usual line at First Public’s Monterey Park branch, in a shopping center at 757 W. Garvey Ave., but Monterey Park police said the line of about 50 people was orderly, and that branch closed at its normal time.