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Inventory of the Department of Investment Records
R305
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Title: Department of Investment Records
Dates: 1907-1971
Collection number: R305
Creator:
California Department of Investment
Extent:
36 cubic feet
Repository:
California State Archives
Sacramento, California
Abstract: The records of the Department of Investment, and its divisions, document many different facets of California's financial past.
The records described in this inventory concern only the Division of Banking, the Division of Corporations, Division of Real
Estate, and the Board of Investment.
Physical location: California State Archives
Language:
English
Some files produced by the Department of Investment are restricted according to California Government Code Section 7920, et
seq.
For permission to reproduce or publish, please contact the California State Archives. Permission for reproduction or publication
is given on behalf of the California State Archives as the owner of the physical items. The researcher assumes all responsibility
for possible infringement which may arise from reproduction or publication of materials from the California State Archives
collections.
[Identification of item], Department of Investment Records, R305.[series number], [box and folder number] or F3736:[folder
number], California State Archives, Office of the Secretary of State, Sacramento, California.
The California State Archives acquired the records of the Department of Investment according to state law.
The Department of Investment was established by law in 1929 (Chapter 277, Statutes of 1929, in effect August 14,1929). The
department was created to bring under a single administration the activities and functions of five previously separate departments,
i.e. the State Banking Department, Bureau of Building and Loan Supervision, State Corporation Department, Insurance Department,
and State Real Estate Department. Under the 1929 law that created the Department of Investment, each of these departments
became divisions that remained autonomous with no change in their functions, responsibilities, or powers. The same law also
specified a Board of Investment consisting of the Superintendent of Banks and the respective commissioners of the remaining
four divisions with each member serving as chairman in regular rotation. The current chairman was known as the Director of
Investment.
Since the 1929 law specified that "...the powers heretofore or hereafter vested by law in said governmental agencies shall
continue to be so vested, and shall not be transferred or consolidated in the Department of Investment" it is appropriate
here to briefly discuss the history and functions of the State Banking Department, the State Corporations Department, and
the State Real Estate Department.
The State Banking Department was established in 1909 (Chapter 76, Statutes of 1909). The chief officer was the Superintendent
of Banks. This department's major functions included issuing state charters for new banks and trust companies and licensing
new branch offices; conducting annual financial examinations of all state-chartered banks, foreign banking corporations, and
trust companies; and liquidating and conserving the assets of banks in cases of bankruptcy.
The State Corporations Department was established in 1913 (Chapter 353, Statutes of 1913) with the Commissioner of Corporations
serving as its administrative head. The department's responsibilities included issuing permits to companies to sell securities;
licensing securities brokers and agents; regulating advertising and other matters pertaining to securities; and administering
various laws including the Credit Union and Franchise Investment Laws.
The State Real Estate Commissioners Department was first created in 1917 (Chapter 758, Statutes of 1917). In 1919 the law
establishing the department was held unconstitutional by the courts, and was repealed. The law repealing the State Real Estate
Commissioner's Department also created a new department named the State Real Estate Department (Chapter 44, Statutes of 1919).
The purpose of this department was to provide for the licensing and regulation of real estate licensees. The name of the department
was changed in 1929 to the Division of Real Estate when the Department of Investment was created. In 1935 the Real Estate
Board was created consisting of the Real Estate Commissioner and six other members who served at the pleasure of the Governor
and acted in an advisory capacity.
The Department of Investment ceased operations after 1969 (Chapter 138, Statutes of 1969) whereupon the individual departments
under its jurisdiction were transferred to the Business and Transportation Agency. Under the purview of the Business and Transportation
Agency the departments continued to maintain their autonomy, as they had when they were divisions within the Department of
Investment.
The records of the Department of Investment, and its divisions, document many different facets of California's financial past.
The records described in this inventory concern only the Division of Banking, the Division of Corporations, Division of Real
Estate, and the Board of Investment. The records are also organized by these divisions. This record group contains 36 cubic
feet of textual records that include subject files, correspondence, meeting minutes, credit union revocations, prospectus,
security sales applications, bank audits, financial ledgers, investigation files and reports, lot subdivision applications,
subdivision reports, Governor's task force files, hearing files, comptroller bulletins, and many records that relate to the
liquidation of Japanese banks (banks that were owned by companies based in Japan) after the Empire of Japan's attack on Pearl
Harbor December 7, 1941.
The Board of Investment records relate to the meeting of the division heads and covers the years 1960-1963. The records group
is mainly illustrative of the administrative tasks of the board itself such as budget allocations, department procedures,
regulations, and reports on the activities of the individual divisions.
The Division of Banking records relate to two major topics. The first component consists of records relating to the review
and audit of California financial institutions. The second component consists of records relating to the liquidation of Japanese-owned
banks after the outbreak of World War II. There is a wealth of information about two major banks, Yokohama Specie Bank, Ltd.
and Sumitomo Bank, Ltd.
The Division of Corporations records contain a large amount of records generated by the office of the Chief Deputy Commissioner
including subject files and correspondence pertaining to a wide variety of subjects including securities permits, licensing
of securities brokers and agents, advertising of securities, and administering various laws including the Credit Union and
Franchise Investment Laws.
The Division of Real Estate records contain files related to the subdivision and sale of land in California as well as the
licensing of real estate agents. There are files that pertain to the investigation and hearings of real estate agents that
had complaints filed against them or otherwise broke the law. There are also reports that summarize the subdividing of lands.
This record group is organized into four subgroups: Board of Investment records, Division of Banking records, Division of
Corporations records, and the Division of Real Estate records.
California. Dept. of Investment
California. Division of Corporations
California. State Real Estate Division
Department of Real Estate
Department of Banking
Department of Corporations
Department of Insurance
Bureau of Building and Loan Supervision