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FAIRBANKS BANK IN HANDS OF RECEIVER (Special to the Times) FAIRBANKS, Aug. 28. - The American Bank of Alaska has been declared insolvent by W. G. Smith, territorial examiner. A. Bruning, former cashier, has been named as receiver. The bank can pay twenty per cent on deposits of $150,000 immediately, and forty-five per cent in the near future. It will eventually pay about ninety per cent.
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EXAMINER CLOSES FAIRBANKS BANK By Associated Press. FAIRBANKS, Aug. 28.-(Delayed in transmission.)--Following an examination of the affairs of the institution, the American bank of Alaska was declared insolvent today by territorial bank Examiner Smith. The announcement came as a great surprise but public excitement was immediately relieved by the announcement that the bank will eventualy be able to repay fully ninety per cent of the deposited funds. In making the announcement Examiner Smith stated that twenty per cent of the deposits of one hundred and fifty thousand will be paid immediately and forty five per cent of more will be fortheeming in the nea" future. A. Bruning, former cashier of the institution has been named as receiver.
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BANK CLOSED AT FAIRBANKS BY EXAMINER American Bank of Alaska Is Declared to be Insolvent-May Pay 90 Per Cent FAIRBANKS, Aug. 27, (Special to The Seward Gateway).-The American Bank of Alaska here was declared insolvent today by Territorial Bank Examiner Smith. Cashier A. Bruning was named as receiver and has announced that the institution can pay 25 per cent at once on the deposits of $52,000 and 45 per cent more in the near future. The bank will eventually be able to pay 90 per cent. C. J. Hurley, of Fairbanks, was president of the defunct bank, and J. P. Gleason, of Seattle, vice president. Local people, formerly of Fairbanks, stated today that the closing of the bank had been expected, as it has been known for some time that its condition was not healthy.
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BANK RECEIVER NAMED. FAIRBANKS, Aug. 29.-A. Bruning former cashier, has been named as receiver of the American Bank of Alaska, which has been closed by Territorial Examiner Walstein G. Smith, for liquidation purposes.
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STOCKHOLDERS ARE UNKNOWN TO RECEIVER That he does not know the names of the present stockholders of the defunct American Bank of Alaska was the statement made yesterday by Adolph Bruning, former cashier and now temporary receiver of the bank, when interviewed by a representative of The Ctilzen. Nor is Mr. Bruning familiar with any of the details of any transaction made on the Outside with regard to stock He knows how the stock was supposed to have been divided a year ago, but is not certain that his list of stock holders was authoritative even at that time This list is posted on the wall of the bank where all who enter may see it. It is as follows
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AMERICAN BANK IS DECLARED INSOLVENT; BRUNING IS RECEIVER "Closed by order of the territorial banking department for the purpose of liquidation. (Signed) Territorial Banking Department of the Territory, 01 Alaska, by W. G. Smith. secretary of the territorial banking board." The foregoing few words on a slip of paper posted on the door of The American Bank of Alaska by Territorial Bank Examiner 11 G. Smith gave notice to the public of the passing of the well known business institution. To bad loans made during the early days of the bank by C. J. Hur ley, thren president, is attributed its failure. The condition of the bank was known to a few local business men, who, during the past week or ten days, attempted to reorganize the institution in order to keep it running by subscribing to stock, only to find that, should they do SO, they would be liable under the law to twice the amount of stock held by them. That scheme therefor fell through, and on Sunday Adolph Bruning, cashier of the defunct institution, asked that the territorial bank examiner close its doors, which was done yesterday. Mr. Bruning has been made temporary receiver of the bank by a court order signed by Judge Charles E. Bunnell, and the institution is now in his charge. It is probable, how ever. that nothing will be done toward making a dividend of the cash on hand until the court arrives here from the \ lower river and makes an order for a dividend. John Clark, attorney for the bank, stated last night that in many instances the depositors who will lose by the bank's insolvency owe money to the institution, consequently their debts will offset their deposits. It is therefore thought that the first dividend will be somewhere in the neighborhood of twenly per cent. but that statement is not authoritatively made. Another unauthoritative report is to the effect that the bank will be able to pay about sixty-five per cent of its indebedness after it realizes 011 certain real estate which it holds, and that it may eventually be able to pay between eighty-five and ninety per cent. A meeting of the depositors of the defunct institution is to be called in the near future. at which time a permanent receiver will be decided upon.
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A POPULAR APPEAL There is a distinction between contributing to the general Red Cros fund and assisting to defray the expense of maintaining a bed in a Red Cross hospital, for the use of American soldiers. The appeal for funds for a specific purpose will reach more deeply into the pockets of American stay-athomes than would any call for general relief. For surely there is not a man or woman among us who would not give his or her "bit" to make the way easier for our wounded and sick boys at the front. It is a direct appeal which brings home to us some of the horrors of war and reminds us of the fate awaiting many of our soldiers, when they shall have entered the great struggle. And the response, we feel certain will reflect credit on the people of Nenana. The appointment of Adolph Bruning as receiver of the defunct American bank. which closed its doors recently in Fairbanks, is a fitting compliment to a man who sacrificed everything, save reputation, to safeguard the interests of the depositors. The failure furnishes one of those rare instances of a bank official continuing to enjoy the confidence of the public after the collapse of the business with which he was identified. And we do not believe that the confidence has been misplaced. As receiver. the former cashier and manager will be able to recover more for the depositors than an outsider could. and when the final accounting is made, it doubtless will be found that the winding up process was accomplished at a minimum of cost.
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JUDGE ISSUES MEETING ORDER Judge Charles E. Bunnell yesterday signed an order directing that a meeting of the creditors of the American Bank of Alaska be held on September 28, 1917, for the purpose of selecting a permanent receiver for the defunct institution. The meeting will be held in the district court room at 2 P. M. on the date named, according to the order. Non-resident creditors and all others interested in the affairs of the bank may express a choice of permanent receiver by letter or telegram addressed to Judge Bunnell.
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A. Bruning, former cashier for the American Bank of Alaska at Fairbanks, has been named receiver for the bank, which was closed by Examiner W. G. Smith.
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BRUNING FAVORITE The depositors of the American bank of Alaska who met at Fairbanks yesterday afternoon for the purpose of naming a permanent receiver, voted to retain A. Bruning in that capacity. The names of Cecil H. Clegg and O. P. Gaustad were also mentioned, but when the vote was taken, Bruning was the unanimous choice of those present. The meeting represented $17,000 less than the required fifty per cent of the deposits, but the depositors appear SO overwhelmingly in favor of the former cashier that he doubtless will be named by the court.
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INSOLVENT BANK TO PAY 15 PER CENT DIVIDEND TODAY notes, in the possession of said ReAn order for the payment of diviceiver, due from said depositors to dends was issued yesterday aftersaid Bank at the time a Receiver noon by Judge Bunnell to the rewas placed in charge thereof, and ceiver of the American Bank of Althat no order has as yet been made aska, which closed its doors on the relative to said set-off, and it fur27th of August A Bruning, the ther appearing to this Court that receiver presented a petition to the certain claims have been presented court setting forth the fact that the to the Receiver, not shown by the liabilities of the bank were $136. books of said Bank, and that have 855.35 as shown by the books of that not been allowed by this Court as bank and that the other outstand claims against said Bank, and the ing liabilities would not exceed Court being fully advised in the $1,500; that he had in his possespremises and being satisfied that sion cash exclusive of the cash due there are sufficient funds on hand from other banks, amounting to the to pay a dividend of fifteen per cent sum of $19,500; that he therefore upon all claims due from the Amhad on hand sufficient money to pay erican Bank of Alaska to the varioff 15 per cent dividends ous creditors of said Bank concernThe bank and its attorneys have drawn up a form of certificate to be ing whose accounts there is no disused in making the payment of divipute: dends. The face of the certificate Now. therefore, it is ordered, adreads: "This is to certify that John judged. and decreed that the said Doe has money in the American Receiver be, and he is, hereby orBank amounting to the sum of dered and directed to pay to the is cents." and Dollars and creditors of the American Bank of signed by the bank officials and reAlaska, as the same appear upon ceiver When the first dividend is the books of said Bank, subject to paid, the amount and date will be the reservations hereinafter made, a stamped on the back of the certifidividend of fifteen per cent of the cate With this certificate it will amount of their said claims, reservbe possible for anyone to transfer ing, however, from said dividend. his claims without confusion by simany payment on any claim against ply placing his signature under the said Bank which claim may be offstamped amount and date. This cerset against notes held by the Retificate must be presented at each ceiver. as such, which notes are payment of dividends, for no funds payable to the American Bank of will be given out without it. Alaska, and reserving therefrom any Effort will be made to collect all payment on any claim not shown funds due and owing to the bank by the books of the American Bank as soon as possible, and as soon as of Alaska to be a legitimate claim the money can be secured the sec against said Bank, but which may ond dividend will be forthcoming have been presented against said The order issued by Judge Bunnell Bank and not allowed by this Court: is as follows: Be it further ordered that, if In the District Court for the Terriany order is hereafter made by this tory of Alaska, Fourth Division. Court allowing any claims against Territory of Alaska, upon relation of said Bank, said dividend be paid the Territorial Banking Department upon said claims SO allowed by this of Alaska, Plaintiff, Court, after said order of allowance VS. shall have been duly made and enThe American Bank of Alaska, a tered; corporation, Defendant. Be it further ordered that, if this No. 2339. Court hereafter makes an order apORDER FOR PAYMENT OF DIVI. plying certain deposits of certain DEND creditors of said Bank upon their The above matter coming on for notes due to said Bank or upon overhearing upon the verified petition of drafts, if any balance of said dethe Receiver of the American Bank positors' accounts remains to their of Alaska for authority to declare credit. the dividend shall be paid and pay a dividend to the creditors by said Receiver upon said balance of said Bank, now under ReceiverSO remaining after such set-off has ship. and it appearing to the satisbeen made: faction of this Court that there is And be it further ordered that sufficient money on hand to enable said Receiver take receipts from all the payment of a dividend of fifteen creditors to whom payments are per cent of all the claims against made, for the amount paid as such said estate, as the same appear upon the books of said Bank, or that are dividend, which receipts shall des ignate the number of the dividend, likely to be presented against said in addition to the amount received Bank, and it further appearing to by the creditor thereon. this Court that there is now pending Done at Fairbanks, Alaska, this before this Court a petition on the sixteenth day of October, A. D. one part of the Receiver, to set off certhousand nine hundred seventeen. tain deposits - to the credit of certain creditors of said Bank (Signed) CHARLES E. BUNNELL, District Judge. against their overdue promissory
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FARMERS BANK BUYS PROPERTY The Farmers Bank of Fairbanks yesterday afternoon purchased from the receiver of the American Bank of Alaska the assay office formerly used by the American Bank. This office is situated on Second avenue almost opposite E. R. Peoples, Inc The Farmers Bank also purcha a all the equipment in the building i their int ntion to use the build ing in the future as their assay OF fice.
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treatment that has been extended to me at all times during the time that I have occupied the position as Receiver of the Bank. I am ready to make my report at any time -that the Court may desire. "Awaiting your pleasure in the matter, I beg to remain, "Very truly yours, "A. BRUNING, "Receiver American Bank of Alaska." Ever since the closing of the bank's doors on August 27, 1917, and since his appointment to the receivership Mr. Bruning has been in charge of the affairs of the bank. His reason for resigning are for none other than stated. Judge Bunnell yesterday morning stated that the receivership would be vested in Commissioner Reed W. Heilig, who will act for the depositors of the bank for a less amount than was being paid Mr. Bruning, whose salary was fixed at $250 per month with a. rental of $50, making a total expense of $300 per month. The amount to be received by Commissioner Heilig will be $75, a saving of $225 to the depositors. The resignation of Mr. Bruning will be effective on June 15, at which time the affairs of the bank will be turned over to the commissioner. The receiver is going to make every effort to collect all outstanding accounts before turning over his stewardship, and if it is possible another dividend will be declared to the depositors when the collections are made. Mr. Bruning will devote his time to the mining game after he steps down.
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FAIRBANKS NOTES Comimssioner Reed Heilig has been appointed receiver of the American Bank of Alaska vice Adolph Bruning, who resigned voluntarily to cut down expenses.
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ADOLF BRUNING TO MINE AGAIN ON JACK WADE Adolf Bruning, who had been connected with the American Bank of Alaska in Fairbanks for many years, and who was later appointed as its receiver shortly after its failure, was a passenger on board the Tanana bound for Eagle. He resigned the receivership recently and is now on his way to the Fortymlie country, where he expects to engage in gold mining. Mr. Bruning owns an interest in some placer mining ground on Jack Wade creek, which is said to carry good values and hopes to be able to develop his property. Mr. Bruning is well known throughout the Tanana valley and his many friends will be glad to hear of his success in the mining game.
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BOYD NAMED COMMISSIONER Mel Boyd has been appointed commissioner at Fairbanks. He is also receiver of the American Bank of Alaska.