The History of Hawthorne by Robert S. Hartman | ||||
Incorporation - The building of the city from 1922 to 1940 - Page 15 of 33
As the city increased in size, the need for an organized society asserted itself. In 1923 the building department was created with one inspector working part time, his salary being the revenue derived from the building permits issued.
Hawthorne's first bank, The First Exchange State Bank, opened its doors on the northeast corner of 126th Street and Hawthorne Boulevard in the building that still stands there. Due to unwise investments in stocks, the president and vice president of the bank received prison terms, and the bank failed in 1932. A number of suits were filed to recover monies deposited in the bank but most depositors received 35 cents or less on the dollar, except the post office and the City of Hawthorne; the Court declared that these two were preferred depositors and awarded them the full amount of their deposits. The Bank of Inglewood eventually located there and was later bought out by the Bank of America who operated there until they built their new building directly across the street at the northwest corner of 126th and Hawthorne Boulevard.
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