gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
4f68c3e681e3ff69
Response Measures
Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Capital injected, Books examined
Clearinghouse involved: Yes
(loan, examination, or other measures)
Description
Contemporary reports attribute the run to malicious telephone rumors and the bank was liquidated and assets taken over by two larger Portland banks.
Events (4)
1.December 23, 1912Chartered
Source
historical_nic
2.March 28, 1927Run
Cause
Rumor Or Misinformation
Cause Details
Unfounded and malicious rumors circulated by telephone triggered heavy withdrawals beginning March 28, 1927.
Measures
Fifteen million dollars in cash rushed from San Francisco, Seattle and Spokane; bank remained open late and waived customary 30-90 day notice; paid out cash and cashier's checks to depositors.
Newspaper Excerpt
A run today on the Northwestern National bank of Portland... started this morning and continued until the close of business tonight... by unfounded and malicious rumors circulated by telephone,
Source
newspapers
3.March 29, 1927Suspension
Cause
Rumor Or Misinformation
Cause Details
Heavy inroads by the run (fueled by malicious rumors) led directors to transfer assets and liquidate the bank; depositors to be paid in full by two other banks.
Newspaper Excerpt
The Northwestern National Bank... passed into the hands of the United States National Bank and the First National Bank today... affairs of the Northwestern would be liquidated.
Source
newspapers
4.May 3, 1927Voluntary Liquidation
Source
historical_nic
Newspaper Articles (22)
1.March 29, 1927The Waukesha County FreemanWaukesha, WI
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MILLIONS NORTHWESTERN BANK
PORTLAND. million dollars in cash was rushed here today to stop run on the Northwestern National bank which began late yesterday and continued mildly today. The money was sent from San Francisco, Seattle and Spokane, Wash. The Northwestern National bank today passed into the hands of the the First National Bank. Transfer of the bank and the decisions to liquidate it resulted from heavy inroads made by the run, A small crowd of depositors were hand when the bank opened today.
2.March 29, 1927Astoria Evening BudgetAstoria, OR
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NORTHWESTERN BANK TAKEN OVER BY TWO PORTLAND CONCERNS
PORTLAND, Qre., March 29. (UP The Northwestern National Bank, scene of a run late yesterday, passed into the hands of the United States National Bank and the First National Bank today. It was announced that all depositors would be paid in full with cashier's checks on one of the two banks and that affairs of the Northwestern would be liquidated. Fifteen million dollars in cash arrived from San Francisco, Seattle and Spokane today and will
3.March 29, 1927The Oshkosh NorthwesternOshkosh, WI
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FIFTEEN MILLIONS RUSHED TO STOP RUN ON BANK
(By United Press) Portland. million dollars in cash was rushed here today to stop run on the Northwestern National bank which began late yes terday and continued mildly today The sent from San Francisco, Seattle and Spokane, The Northwestern National bank today passed into the hands of the S. National bank and the First National bank. of the bank and the decisions to liquidate It sulted from heavy inroads made by the run. A small crowd of depositors were on hand when the bank opened to-
4.March 29, 1927The CourierWaterloo, IA
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Sends $15,000,000 in Cash to Stop Run on Bank in Portland
Portland Ore March Fifteen dollars rushed today stop run Northwestern National which yesterday San Francisco, Cal. Seattle The Northwestern National bank today passed and the bank Transfer the liquidate resulted from heavy inroads made by the was hand when bank opened to day.
Run On Bank
March million dollars cash rushed here today stop the Northwestern National Bank which late yesterday and continued mildtoday. The money was sent from San FranSeattle and Spokane,
The Northwestern National Bank passed into the hands of the National Bank and the First National Bank. Transfer the bank and decisions to liquidate resulted from The inroads made the
6.March 29, 1927The Independent-RecordHelena, MT
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Article Text
RUN ON PORTLAND BANK Portland, Ore., March 28.-(AP) -A run today on the Northwestern National bank of Portland. the Morning Oregonian will say. tomorrow, by "unfounded and malicious rumors circulated by telephone," started this morning and continued until the close of business tonight. In order to accommodate as many depositors as possible the bank did not close at the usual hour but remained open until 6 o'clock.
7.March 29, 1927The Hanford SentinelHanford, CA
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BANK
DEPOSITORS WILL BE FAID IN
FULL, OFFICIAL
MENT SAYS; TIME DEPOSITORS
PAID.
Portland, Ore,, March The Northwestern National Bank, scene of run late yesterday, passed into the hands of the U. National Bank and the First National Bank today.
It was announced that all depositors would be paid in full and that affairs of the Northwestern will be liquidated.
Fifteen million dollars in cash arrived from San Francisco, Seattle and Spokane today and will be used if the continues. The bank opened at 10 o'clock and fair sized crowd of customers was waiting to receive assurance as to the safety of their funds or to withdraw them. Transfer of the bank and decision to liquidate it resulted from heavy inroads made by the run when hundreds of small depositors withdrew their accounts The bank remained open late last evening and all accounts were paid, the customary thirty to ninety day withdrawal notice being waived
8.March 29, 1927The Times-NewsTwin Falls, ID
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BANK UNABLE TO WITHSTAND WITHDRAWALS
PORTLAND, Ore., March Northwestern National bank, scene of a run late yesterday passed into the hands of the United States National bank and the First National bank It was announced that all depositors would be paid in full with cashier's checks on one of the two banks and that affairs of the Northwestern would be liquidated. Fifteen million dollars in cash rived from San Francisco, Seattle and Spokane today and will be used if the run continues. The bank opened at 10 o'clock and fairsized crowd of depositors was waiting to receive assurances as to the safety their funds or to withdraw them. Transfer of the bank and decision to liquidate it resulted from heavy, inroads made by the run during which hundreds of small depositors withdrew- their accounts.
9.March 29, 1927The BulletinBend, OR
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Bank Sold After 'Run'
First National and National Purchase
Million Dollars Sent Other
Depositors
March Northwestern National passed into the hands of the United States National bank and First National bank today. announced that all positors would be paid in full cashier's checks on of the two banks and that affairs the Northwestern liquidated. Fifteen million dollars in from San Francisco. and Spokane today and used the The bank opened o'clock and crowd of depositors waiting receive assurthe safety of their funds or to withdraw them. Transfer of the bank decision to liquidate resulted from heavy inroads made by the run during which hundreds of small depositors withdrew their accounts. The bank remained open late Monday evening and all accounts were paid, the customto 90-day withdrawal tice savings accounts being waived. Ainsworth. president of the United States National bank. and Mills, president of First National bank, issued joint statement today in which they intimated that the run caused by 'malicious rumors which in our opinion. Agreement of the banks take over the and to guarantee of payment counts followed an all-night session of the Portland Clearing House association. William Crawley. national bank examiner attended the conference and proved The March 23 call for national banks showed the condition of the Northwestern to be lows: resources posits, surplus and profits, The Northwestern of one the largest national banks Portland. founded in and the Pittock estate, ownof the Morning recently acquired control
10.March 29, 1927The Morning PressSanta Barbara, CA
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Depositors Make Run On Portland Bank
Mar the Northwestern Na. here this afternoon hundreds depositors caused tired work overtime in paying thought financial circles that the bank could the run without difbut bankers puzzled caused the run.
11.March 30, 1927The Register-GuardEugene, OR
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Article Text
NORTHWESTERN CLOSES ITS CAREER IN BANKING
CIRCULATION RUMORS CAUSE OF MONDAY RUN
Board Assigns Assets to Two Other Portland Banks, They to Assume Deposit Obligations
Ore., March Northwestern National bank of this city closed its banktoday when assigned Its assets the United States National and First National banks of Portland consideration their deposit obligations of the Northwestern. Depositors are receiving 100 the dollar on their deposits, and subjected to dein getting their money Those are the savings department of the bank are not being to give the stipulated 30 to 90 days notice in order withdraw their accounts This was the policy decided of directors for the Monday when the run the began. After weathering the withdrawof more than during the first day the run. the directors bank into agreement the Portland Clearing House the United States National and First National banks are both in turn backed by the federal serve. for the payment of all posits demand The of rumors, characterized by heads the First National United States National and the run the Northwestern. declared. president of the United States National said tonight: covering of Monday night and Tuesday have every that the securities held by the NorthwestNational will out In full and most regretful that this unholy attack their busimade liquidation of the Northwestern advisable."
12.March 30, 1927Evening Baker HeraldBaker City, OR
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THE PORTLAND BANK CRISIS
Another big Portland bank is to go out of existence as a result of the announced liquidation of the Northwestern National whose assets will be taken over by the First National and United States National without loss to depositors. The crisis appears to have been brought on by the circulation of rumors that the Northwestern was insolvent. This resulted in a run. The bank was able to meet the demands of the depositors, but the situation created was such that the officers decided to liquidate and retire from the field. The affair is to be regarded with regret, though the prevention of loss to depositors is a matter for congratulation. Two main facts stand out in the incident. First: That even a great bank is absolutely dependent upon the confidence of the public. No matter how great its material assets may be, public confidence and good will are indispensable. Remove this and no bank can last a week. In a somewhat lesser degree this principle applies to business generally. There can be no success without the support and approval of the public.
Second: The banking situation in Portland is fundamentally sound as shown by the immediate raising of more than $15,000,000 by two other banks to pay off the Northwestern's depositors. Nobody will suffer loss or even inconvenience. It is a convincing proof of the confidence of the financial leaders of Portland in their city. They have used their money to stabilize the situation when they might have permitted a competitor to go to the wall with immense losses to thousands of people.
13.March 30, 1927The WorldCoos Bay, OR
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CARY SEES BIG BANK RUN
Leo J. Cary, of Coquille, who returned this morning from brief business trip to Portland, said that one of the most remarkable sights he ever witnessed was the run on the Northwestern National Bank in that city which continued unabated all day Notwithstanding the fact that the First National Bank and the United States National Bank. with combined resources of nearly $100,000,000. announced that they would take, over the Northwestern and guarantee that every penny would be paid depositors, the run continued all day yesterday until the bank closed at o'clock. A crowd of one thousand or more kept surging around the bank all day. Officers of the bank were stationed at each door and Mayor Baker made speech to the depositors Fifteen million dollars in cash were received to provide pay. ments to-depositors: This money was rushed in from Seattle, Spokane and San Francisco. The larger part of the crowd was well dressed. substantial looking people, and there seemed to be more women than men in the mass struggling to get into the bank. Vold Sees Run H. T. Vold, with the Pacific Coast Adjustment Bureau of Portland arrived this morning to the damage of the old Pioneer hotel which burned in Empire.
People Calmer
Mr. Vold stated that the run on the Northwestern Bank at Portland had apparently subsided yesterday afternoon when he was at the bank. Following Mayor Baker's speech to the people calmer attitude was dreds of people jostled their way into the bank to draw out their money immediately. thinking that a lack of funds would follow. However, the people of Portland are now aware that the bank is not suffering under any such conditions and that their money is safe. Mr. Vold. who was in the bank yesterday, reported that it had apparently resumed state of normaley but many were yet drawing out money from the safety deposits.
14.March 30, 1927Kearney HubKearney, NE
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HEAD OFF A RUN ON BIG BANK
Fifteen Million Dollars Rushed to Portland, Ore.
Portland, Ore., March 30.-Fifteen million dollars in cash was rushed here Tuesday to stop a run on the Northwestern National bank. which began late Monday and continued mildly today. The money was sent from San Francisco, Seattle and Spokane, Wash. The Northwestern National bank passed into the hands of the United States National bank. and the first National bank. Transfer of the bank and the decisions to liquidate It resulted from heavy Inroads made by the run. A small crowd of depositors were on hand when the bank opened Tuesday.
Wm. Penn-5 cents-A Good Cigar.
15.March 30, 1927Herald and ReviewDecatur, IL
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RUSH FIFTEEN MILLION; HALT RUN ON BANK
PORTLAND, Ore. March teen million dollars in cash was rushed here Tuesday stop run on the Northwestern National bank which began late Monday and tinued mildly Tuesday The money sent from San Francisco, and Spokane, Wash. small crowd depositors hand when the bank opened Tuesday.
16.April 6, 1927Evening Baker HeraldBaker City, OR
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NEW LIGHT ON THE PORTLAND BANK CRISIS
Because there is much public interest in it, the publication of a few additional facts on the closing of the Northwestern National bank of Portland last week, together with a brief comment upon them appear to be worth while. Outstanding facts about the affair appear to be: First-That bad loans had been made by the bank during the past few years and that losses which had to be written off had prevented the payment of dividends to stockholders and restricted the bank's growth and prosperity. Second-The bank was never insolvent and with a change in management had placed itself in the best financial condition in its history shortly before the closing. Third-That the "run" on the bank Monday, March 28 was the result of a series of rumors which apparently were started by some person or persons with malicious intent. That these rumors were entirely without foundation. Fourth-That the bank paid out nearly $2,000,000 in cash the afternoon of March 28. That evening its principal stockholders agreed to sign personal guarantees for large sums of money in addition to the double liability to which they were legally held. Fifth-That finally they agreed to sacrifice their large investments in the bank and to turn the assets over to two other Portland banks without compensation to themselves, but with an unconditional guarantee that every dollar due the depositors would be paid at once. The facts indicate that the run was entirely unnecessary, that it was the result of a malicious and criminal plot and that the principal stockholders of the bank courageously sacrificed their large investments and their personal pride in the interest of their depositors. We may justly conclude that the closing of the Northwestern is a drama in which human nature at its greatest heights and lowest depths stands revealed. Too much cannot be said for the courage and sense of honor shown by the one group, and no words of contempt carry enough sting to describe the instigator or instigators of the plot.
One of our earliest business recollections was a sign in a little eastern bank which read, "Honor thy father and thy mother, but not strangers' checks." The advice was good then and it is good now. Baker is visited periodically by bad check artists who pick up a bunch of easy money and then leave for parts unknown. This could be stopped if our people would be a little more careful in cashing the checks of those they do not know. The bogus check toll is greater than most people suppose.
We entered the World war 10 years ago today, and outside of China and Chicago the world is at peace. While all we fought for was not realized, the great menace to civilization was removed. The world was made safe enough for democracy, but the greater task of making democracy safe for itself is still an unfulfilled hope.
17.November 4, 1927Statesman JournalSalem, OR
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Former Official At Bank Gets 18 Months Sentence
PORTLAND, Nov. Ford H. Schiller, 24, former sistant collection teller at the Northwestern National bank, now defunct, was sentenced to serve 18 months at McNeil island today by Federal Judge McNary, when he pleaded guilty to charges having embezzled $5,000 from the bank and made false entries upon his books to cover hte defalcation. According to Forrest E. Littlefield, assistant federal attorney, Schiller began taking money be- The longing to the bank in the summer of 1926 and continued to do Many bedroom has been beautified at until the time the bank suspended when the amount reached expenditure, with LUSTRELAC ENAMEL. The old bed$5,000. His books were balanced room furniture, painted in an attractive color combinby him at that time by the entry ation, and decorated with transfer motifs, becomes of debit slip for $5,000 on suite of furniture according to the latest fashion! New York bank.
He was receiving salary month. Send for Color Harmony Chart
18.November 10, 1927Spokane ChronicleSpokane, WA
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PORTLAND BANK SCANDAL BREWS
Federal Lawsuits Allege Northwestern National Deliberately Wrecked.
Charges Northwestern Na tional bank which went out of business last March run wrecked petency and unlawful its board two suits on file in federal court One of the sults was filed today by Fred Ballin Angeles, judgment last by Charles Burckhardt $31,250 Portland both plaintiffs The defendants named the proprietor Imperial hotel Portland: general passenger agent the Northern Pacific: Chauney McCormfck the Deering Harvester Portland Fred erick the Pittock Price, the bank, and trustee of Pittock Morden. trustee of Pittock estate; Twohy Twohy Brothers, contractors: Emery Olmstead, president of the bank Charles H. the bank, and Mark vice of the bank.
Lost $2,000,000
The complaint charges that tween July 1922, and December 31, 1926, the directors "knowingly and caused the bank" than $2,000,000 that the instructions the to reduce E. Wheeler and which was examincommittee directors made secret reports to the directors showing the of the bank while to the examiner and of showed but condition" that the board of directors and committee of seven these actions and methods the that during the 1926 and 1927 the and the condition of the bank from the and officials the The statement was made in the that when the Wheeler terests Wheeloffered himself all his properties order protect the but refused It the taken the bank in March of 1927, but failed to the defendants were directors of the Northwestern National bank.
19.January 15, 1928Statesman JournalSalem, OR
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MET BY
Announcement Made At Portland Yesterday By Olmstead's Lawyer
PORTLAND. Ore., Jan. Northwestern Nationwhich closed its doors in March, 1927 following sensational run, will pay out depositors, stockholders and contingent itles and still have a million dollars to spare according to Chester Sheppard, attorney for Emery Imstead. former president of the institution, and stockholder at the of the liquidation. Mr. Sheppard based his statement on the report read by O. Price, president of the bank at meeting of the directors, January 10, when the following figures were released: Due to depositors, concerning which Mr. Paige said that this amount would have been paid in full had It been called for Out in stock, less than $2,000,000. Contingent liabilities $2,000.000. Assets remaining to the bank, of which Mr. Sheppard said: "Not being a banker can't pass final judgment on all of these assets, but believe that every claim can be paid in full, and the stockholders receive the sums due them. They have not been assessed since the failure of the bank.' "Since March, when the run started on the bank, $21,000,000 been liquidated. Of this $15,413.362.12 has been paid the Bank closed its doors. yard of the ten mile parade route which led through the business district, across Biscayne bay to ami Beach over one causeway and back over another, to return to the railroad station again through the business district. President Saluted The president and Mrs. Coolidge were in the automobile of Mayor and Mrs. E. Sewell, near the head of the parade and were greeted with the presidential salute by bombs dropped from airplanes circling overhead while steamships in the harbor kept up a constant din of whistles. The crowd's welcome was cordial but restrained, with no vociferous yelling. No window in downtown buildIngs was without its watchers the parade rolled past. Mrs. Coolidge leaned lightly on her husband's arm as they stood on the observation platform of the train waving goodbye as It pulled out its way to Key West. The first lady's smile was ever present during the hour and ten minutes stay here. President Coolidge was, as usual, grave.
20.January 24, 1928East OregonianPendleton, OR
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NEVER LOST CENT PORTLAND, Jan. Declaration that the Northwestern National bank, which was liquidated last March after a run on the bank, never lost a cent in overdrafts to the McCormick lumber company. of which J. E. Wheeler was head. was made today by Chester A. Sheppard, attorney Wheeler and Emery Olmstead, former president of the bank. Olmstead and Wheeler are on trial in federal court charged with conspiracy to violate the national bank laws through alleged check kiting operations.
21.January 24, 1928The WorldCoos Bay, OR
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Ore., Jan. The jury to try Emery former president of the Northwestern National Bank and Wheeler, lumberman. on charges of conspiracy to violate the federal bank laws. was completed United States Attorney Neuner started opening statement of the government, outlining the details that preceded the closing and liquidation of the Northwestern Bank last The declaration that the Northwestern National bank, which liquidated last March after the bank, never lost cent overdrafts to the McCormick Lumber of which Wheeler was head. was made day by Attorney Sheppard. Wheelwas pictured in the role rescuer of the bank at the time certain interests were trying it to the U. National bank Portland
22.February 18, 1928Statesman JournalSalem, OR
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DEFENDANTS FOUND GUILTY AT PORTLAND cuit court. hope there will be no or manifestation of proval or said Federal Judge Bean he glanced with apparent surprise the large crowd massed into the small courtroom. At the counsel table sat Olmstead. stolid deter mined. gazing straight ahead Absently he tapped the table top with his Back of the table sat Wheeler. slumped down his his hands folded in his lap. There was only slight in the courtroom as the verdict was read. There no change be noted in Olmstead. He mained calm. face stern Wheeler recolled slightly word "guilty" was intoned and rapidly times "No. have nothing to the statement of each defend he left the courtroom government well fied with verdict." said George Neuner. United States dis trict prosecuted the He told leaving immediately for San Diego where mother. Mrs Mar 74. was near The rial of Olmstead and Wheeler resulted directly from closing of the Northwestern bank here in March following run on the bank by rumors insecure redits federal grand jury in July reported out true bill harging the two with conspiracy and violation of the national banking act and the misapplication of in funds and credits bank During trial lished by the prosecution that Wheeler had drawn checks eastern banks where he had credit. deposited the checks the National here. hen drew from the mythical fund to pay other debts. The checks deposited the Northwestern bore the ed endorsement Olmstead The total amount of checks put through on eastern banks tween March 29. 1926. and March 1927. estimated at more than Of this amount was lost to the Northwestern National. the government contended Trial of the began in FedJudge Bean's court on January 23.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
