Accommodated withdrawals, Clearinghouse loan, Full suspension, Books examined
Clearinghouse involved: Yes (loan, examination, or other measures)
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(By telegraph to the Dispatch.) TACOMA, WASH., June 1.-The - Merchants' National bank, the oldest banking institution in the city, suspended payment temporarily this morning. A notice on the door stated that this action was taken on account of the stringency of the money market and inability to make collections. The bank will probably resume in a few days.
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TACOMA, Wash., June2.-The Merchants National Bank, the oldest banking institntion in this city, has surpended payment temporarily. A notice on the door states that the action is taken on account of stringency of the money market and inability to make collections. The bank will probably resuine in a few days.
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IN THE INTEREST OF OMAHA Efforts Being Made to Have Granite Used in the Federal Building. REASONS FOR DESIRING THIS MATERIAL No Other Stone Can Be Used with Advantage as a Result of the Severe Climate-Senator Manderson at Work. WASHINGTON BUREAU OF THE BEE, 513 FOURTEENTH STREET, WASHINGTON. D. C., June 1. Senator Manderson arrived in Washington today. He is here to contend for a granite construction according to the original proposals for the new public building at Omaha. The senator said that Supervising Architect O'Rourke had said to him before his departure for Nebraska that there was no intention to order new proposals. The senator will see Secretary Carlisle tomorrow and inform him that the proposition to construct the building of sandstone, Bedford limestone or other material than granite will be a pure waste of money for the reason that the lighter materials of construction will not stand the climate of Nebraska, however popular they may be in the east and south. The senator said that Mr. O'Rourke's letter to him recently stated that a granite construction would exceed the appropriation at least $50,000. "If that is so," said the senator, "we will try and get the extra $50,000. which 1 think we can do without serious trouble." Senator Manderson is in earnest in this matter and there is no doubt that he will make things decidedly lively for those who have been attempting to alter the plans and readvertise for bids. Vifquain's Final Instructions. General Victor Vifquain of Lincoln, who was recently appointed consul general to Columbia, arrived here today from New York. General Vifquain at once called upon Secretary Gresham and received his final instructions. The general returned to New York this evening and will sail from that city for Panama, his post of duty, on Monday. To Reform the Public Service. The joint commission from the house and senate, which was appointed by the last congress to investigate and suggest methods for reforming the public service in the departments. has appointed a committee of three, to whom the work will be delegated. Two of the appointees are officers of the Atchison, Topeka & Santa Ferailroad, President J. E. Rinehart being one and E. W. Sells of Chicago another. The third commissioner IS Charles W. Haskins of New York. The commission will meet Monday to begin its labors in a room of the Treasury department. Western Pensions. The following pensions granted are reported: Nebraska: Original-Arthur Belding, Daniel W. Ellis, Henry Fuhrer. IncreaseSeth J. Arnett. Original widows, etc.Melinda Suggs. Magdalina Fuhrer. Iowa: Original-Daniel Fogal. Increase -Edwin A. Norton, Eze Flower, Robert Wempler. Reissue-John Chess, Harrison Clinkenbeard, William H. Wilson. Reissue and increase-John McLaughlin. Original, widows-Meribah Fowler. South Dakota: Increase-Joseph W. Barton. Washing ton Bank Failure. Comptroller Eckels received information after closing the department this evening of the failure of the Merchants National bank of Tacoma, Wash. A week ago the bank was regarded to be snaky and the examiner began looking into its affairs. He reported that the clearing house had come to the rescue with sufficient money to meet the run and expressed the opinion that it would tide over. Later the Chase National bank of New York drew out a large amount of deposit, which still further depleted the bank's resources and was the immediate cause of the failure. Personal Mention. At Wilcox, Kearney county. Neb., L. J. Wohlgemuth was appointed postmaster, vice
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TACOMA, Wash., June 2-A heavy run on the Tacoma Trust and Savings bank and most of the other banks in the city continued today because of the suspension yesterday of the Merchants' National bank. All demande were promptly met and no further trouble is feared.
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TACOMA, June 5.-A heavy run on the Tacoma Trust and Savings bank and most of the other banks in the city continued during the day because of the suspension of the Merchants' National bank. All demands were promptly met and no further trouble is feared.
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Gathered from All Quarters.
AT St. Louis, Mo., on the 31st ult., it was stated that an amicable agreement had been reached in the difficulty existing for nearly four years between Liggett and Myers, tobacco manufacturers, and the Knights of Labor.
PURCELL THOMAS, an æronaut of national reputation, while making an umbrella descent from the top of the parade house at Buffalo, N. Y., on the 31st ult., lost control of the parachute and fell a distance of fifty feet, sustaining fatal injuries.
Ar a meeting of the creditors of ex-Secretary Foster, at Fostoria, O., on the 31st ult., it was decided to accept 50 per cent. in payment of claims, leaving it with Mr. Foster entirely as to whether or not he should pay more in the future if he became financially able to do so.
commenced at Saratoga Springs, N. Y., on the 31st. The reports showed total receipts for the past year $738,081, an increase over the previous year of $75,292. The society workers number 2,002, ministering to 3,841 congregations and missionary fields. New schools to the number of 265 have been organized. One hundred and forty new churches have been established. Gen. O. O. Howard was re-elected president; Rev. W. H. Holman, recording secretary; George S. Coe, auditor.
A STOCK train on the Chicago, Milwaukee & St. Paul road was wrecked near Sioux City, Ia., on the 31st ult. Five persons were injured, one fatally. A half dozen cars were demolished and considerable stock killed.
A DISPATCH was received at the state department from Minister Baker, dated Massaya, June 1, stating that peace is restored at Nicaragua and the new government went into operation on that day.
were closed down indefinitely on the 31st ult., owing to a strike of the employes, who demanded the reinstatement of several discharged leaders of the local labor union. The company refused to accede to the demands of the men.
Ат Tacoma, Wash., on the 1st the directors of the Merchants' National bank announced a temporary suspension, owing to the run which lasted thirty days and the failure of the bank to realize on its assets
carried $2,750,000 gold and $182,800 silver.
P. F. FLEURY, manager of the Waukesha Mineral Springs Company, was fatally shot by burglars at Chicago on the 1st.
On the 1st Dean Bros.' bank at Ava, Ill., was robbed between 12 and 1 o'clock at noon of about $3,000. There was no clew as to who committed the robbery. Runners were sent out in all directions.
NEAR Haddam, Washington county, Kan., on the 1st, S. C. Kerns shot and instantly killed W. R. Combs. They were interfering with a fist fight which was in progress between two farmers and began quareling themselves. Kerns drew a revolver from his boot and placing it at Combs' breast sent a bullet through his heart.
FULL blooded Chickasaw Indians have held indignation meetings and forwarded protests to President Cleveland against letting the treasurer of the Chickasaws distribute the big strip money. They are afraid of being cheated.
NEAR Los Angeles, Cal., on the 1st, a regular freight train was run into and badly wrecked by a special freight. George R. Shatte, a prominent capitalist, was instantly killed. A number of other passengers were badly cut and bruised.
GEORGE M. VAN LEVEN, JR., has been held to the United States grand jury at Dubuque, Ia., in $2,000 bonds on the charge of illegally receiving money for securing a pension.
D N. MORGAN, of Connecticut, the new United States treasurer, took the oath of office on the 1st and entered upon the discharge of his duties, relieving E. H. Nebecker, of Indiana. The committee appointed to count the money in the treasury immediately assumed charge and began the count. It will take six weeks to complete it.
AT St. Louis, Mo., on the 1st representatives of several wholesale houses in that city returned from a conference recently held at Pittsburgh, Pa., and stated that another trust to be known as the American Flint Bottle Company is about to be formed with a capital of $1,000,000.
entailing a loss of $100,000; partially insured.
AT Nashville, Tenn., the high court of impeachment on the 2d found Judge Julius J. Dubose, of the Shelby county criminal court, guilty of two charges in the articles of impeachment preferred.
The motormen and conductors were granted the advance in wages which they demanded.
BUSINESS failures occurring during the seven days ending June 2, numbered for the United States 238 and for Canada 21, total 259, against 207 for the corresponding week of last year.
THE failure to raise $6,500,000 on the Cherokee strip bonds has caused a commercial crisis in the Indian territory.
J. W. Stahler & Son, at Tahlequah, the principal traders on the strip
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The Merchants' National bank of Tacoma, the oldest bank in that city, and the Plankerton bank of Milwaukee are among the latest to suspend payment.
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A Receiver at Tacoma WASHINGTON, June 23.-Comptroller Eckles to-day appointed Robert Wingate receiver of the Merchants' National bank of Tacoma, Wash.
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A Receiver for & Tacoma Bank. WASHINGTON, June 23.-Comptroller Eckels today appointed Robert Wingate receiver of the Merchants' National bank of Tacoma, Wash..
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WASHINGTON, June 23.- Comptroller Eckles today appointed Robert Wingate receiver of the Merchants' National bank of Tacoma, Wash.
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Auburn Argus. The other day the writer had occasion to pay a party in Tacoma some money, and among the bills was one issued by the Merchants' National bank, of Tacoma, which has gone into the hands of a receiver. We said to the party: "Here is a bill issued by the defunct national; I suppose you do not want it." "Certainly I do," the party replied. "and would take ten thousand of them if it were possible to get hold of them." How many of our readers who have been reading and hearing about so many national bank failures have taken the trouble to examine their bills to see if there was a single one on any of the suspended banks? We venture that no one has done so, for the reason that he knows his bill is good whether the bank fails or not. Uncle Sam IS back of all the national bank money, and not a man who has a bill on a "busted" national bank loses an hour's sleep over it. So much for wise legislation.
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Executive Commissioner Calhoun's Report.
Since the last meeting of the commission I have permitted the sale of orange cider in the state building for a consideration of 10 per cent. of the gross sales. Commissioners Jackson and Huelsonkamp, of Florida, who have the cider concession on the fair grounds, offered to furnish us cider at 50 per cent. of the gross sales. Twenty-five per cent. has to be paid to the World's fair officials. That will leave 25 per cent. for the commission, out of which all expenses will have to be paid.
Feeling that the state of Washington was scarcely prepared to go into the peanut and cider business, I handed the concession over to John R. Reavis, of Spokane (who has been on duty with us for some time without salary), and he has already paid us about $300 as a result of this arrangement. Of this sum I have forwarded $250 to the receiver of the Merchants National bank of Tacoma to be applied on a note made by Dr. N. G. Blalock, Henry Drum, P. W. Rochester, William N. La Follett and others. This note was given for money spent on World's fair work prior to the organization of this commission, and therefore could not legally be paid out of the appropriation."
[It will be noted that this money goes to liquidate a private debt.]
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TACOMA, Oct. 14-[Special.]-Receiver Wingate, of the Merchants' National bank, has tranferred to the former attorneys of the bank a parcel of land south of the city, which today sold for $4,000 and which he as receiver bid in. The property is to be held by the attorneys until the receiver is advised by the courts as to the value of the services rendered by them in foreclosing the same. Their price was $1,000, which, with expenses, is estimated by the receiver to be more than half what the property sold for today.
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Not Likely That the Merchants' National Wreckers Will Be Prosecuted.
TACOMA, Jan. 11.-[Special.]--Assistant United States District Attorney Robertson was asked today if the county grand jury had any jurisdiction in the matter of investigating the affairs of the Merchants' National bank. He stated that the jury would not have any jurisdiction in any matter which is covered by the national banking laws. He, however, preferred not to discuss the proposition, but to allow the county legal officials to decide what investigation should be made.
As regards the transferring of property by officers of a National bank after the failure of the bank, Mr. Fogg, the legal adviser of Receiver Robert Wingate, of the Merchants' National, says there is no law preventing a man who is indebted to a National bank from disposing of his property as he sees fit until judgment has been secured against him. A large amount of property has been transferred by Walter J. Thompson and others connected with the Merchants' National since it failed.
As regards the borrowing of money from the bank in excess of 10 per cent. of the capital stock, the law states plainly that it is criminal or rather unlawful, but no punishment is provided unless it is proved that such loans were made in an unlawful manner, and that the loaning was criminal. The mere fact of an officer or stockholder receiving in loans over 10 per cent. of the capital stock is said by those who have looked up the law not to be criminal per se.
If, however, the loan committee of the bank consisted of, say, the president and two or more directors, and the president, without the knowledge or consent of the others, went ahead and loaned himself money, either inside or above the 10 per cent., he would be guilty of embezzlement. So say the national banking law pundits. This 10 per cent. borrowing proposition is being crefully looked into just at present, but thus far no reading of the law indicates that those who have received more than the lawful amount, in proportion to their stock, will be called to account for so doing, so far as any penalty attaches. There is no indication, either, that those who have transferred their property to escape losing it by virtue of their indebtedness to the bank will be forced to an accounting.
At present the indications are that the depositors may realize about 50 cents on the dollar. The assessment called for by the receiver will be due January 27, at which time, if the same is not paid, he may proceed to bring suit and secure judgment upon any property that can be seized.
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The Frauds in Nelson Bennett's Bank. WASHINGTON CITY, Jan. 22.-[Special.]Comptroller Eckels showed the Post-INTELLIGENCER correspondent a copy of the Tacoma Morning Union the other day which had been sent to him. It gave what purported to be the inside history of the Merchants' National bank failure and also of the fraudulent publication of the condition of the bank by the Ledger in May last. "There is nothing in this for me to worry over." said the comptroller. "I haven't heard any complaint against the receiver whom I appointed, and I guess he and the grand jury will attend to whatever crookedness may have been discovered. I am not able just at present to say what percentage of its claims the bank will pay, but its own statement cannot be particularly gratifying to its creditors."
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No Law Was Violated in Concealing the Statement Last May. WASHINGTON CITY, Jan. 23.--(Special.)The comptroller 18 unwilling to say how much the defunct Merchants' National Bank of Tacoma will pay on the dollar, but the fact of his calling for the entire capital stock of the bank before the first dividend is declared is very suggestive of facts which have been brought to his notice by the receiver. The bank violated no United States law in publishing its May statement in only a portion of the edition of the Ledger, for there was no attempt to deceive the comptroller by so doing. If the public or the stockholders of the bank consider that they were deceived thereby, says the comptroller, it is a matter for them to present before the grand jury. TACOMA, Jan. 23.-(Special.]-Today's work of the grand jury indicates that the condition of the local banks is being inquired into.
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TACOMA, Jan. 25.-(Special.|-Receiver Robert Wingate, of the Merchants' National bank, was summoned twice before the county grand jury today. He did not take his books with him the first trip, but when he returned the second time he had them. Mr. Wingate as receiver has begun suit against the South Side Land Company to foreclose 8 $25,000 mortgage. ExPresident W. J. Thompson, of the Merchants' National bank, was the principal owner of that property.
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TACOMA, Feb. 20.-[Special.]-Many witnesses were summoned before the Federal grand jury today to testify in the Mer chant's National bank case. A representative of the clearing house was also summoned, together with several of those who have lost money through warrants which were protested by the correspondents of the suspended bank.
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robbed at Briceville, Mo., by two masked men. Valuable registered packages were taken. George Walker the murderer of John Terrell, was sentenced at Pittsburg, Pa., to twelve years in the penitentlary. Charles Williams was convicted on two counts and James Robinson on a single count of violation of the Kansas liquor law. Samuel Collyer, ex-cashier of the suspended Merchants' Nation bank, Tacoma, Wash., was arrested on an indictment charging that he had received $309 the day before the bank closed. He is a son of the Rev. Robert Collyer, the noted New York divine. The Nolin-Turner feud has broken out again in Hardin county, Ky., because of the killing of two Turners by Dr. Will Nolin. The killed are Dick Nolin, his brother John, a man named Mullins, and Mrs. Skidmore, a. widow, near whose house the encounter took place.
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Harry McCreary, a negro, was lynched at Elk Valley, Tenn., for assault. Miss Anna Collins was arraigned for forgery at Lafayette, Ind., and released on $1,000 bail. E. E. Thomas was waylaid and robbed at Chatsworth, Iowa, of $315. There is no trace of his assailant. Seven prisoners, charged with varicus offenses, were whipped at New Castle, Dela., under court sentence. M. H. MacDonald and T. P. Searls resorted to firearms to settle a quarrel at Rush Springs, Kan. Both will die. Four colored burglars escaped from the London, O., jail by knocking sheriff Chenowck down ard rushing out. Four tramps are held at Elwood, Ind., suspected of assaulting a woman at Kokomo. Mrs. Taylor was assaulted and left in a critical condition by a negro who escaped, at Straightford Creek, Tenn.. Paul Loeasio, a Greek merchant at Birmingham, Ala., murdered his wife with a spade during a family quarrel. A negro named Collins was flayed alive by whitecaps at Athens, Ga. He was accused of enticing away servants. Fred H. Childs, who shot James B. Nichols dead at Clyde, N. Y., will plead insanity. Michael Dolen was murdered and his hut burned to conceal the crime near Houston, Tex. Sam Gwynne has been arrested in Unicn County, Tenn., charged with the murder of his uncle and aunt, Mr. and Mrs. Henry Snoddy. Antonio Luciano and Antonio Degidio were sentenced to be hanged May 10 at Grenfell, Man., for the murder of a companion. Samuel Collyer, ex-cashier of the suspended Merchants' Nation bank, Tacoma, Wash., was arrested on an indictment charging that he had received $309 the day before the bank closed. He is a son of the Rev. Robert Collyer, the noted New York divine. The Nolin-Turner feud has broken out again in Hardin county, Ky., because of the killing of two Turners by Dr. Will Nolin. The killed are Dick Nolin, his brother John, a man named Mullins, and Mrs. Skidmore, a widow, near whose house the encounter took place.
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NEWS OF TACOMA TACOMA BUREAU or Tax SENCER, 1118 PACIFIC AVENUE. THOMAS BAMMONS, MANAGER. THE BANK WRECKERS Thompson, Drum, Collyer and Davis Indicted. STRAW PAPER IN THE ASSETS. I Boom Boose 2 3 I I 1 i i I 100 I TACOMA. March - (Special)-The Federal grand jury today indicted a num. ber of the officers of the suspended Merchants' National bank on seven counts, alleging false entry and straw paper as follows: Promissory notes-Samuel Collyer to Louisia D. Collyer, September, 1892, $1,971.14 and $1,902.86 False entries False entries of promissory notes-W. R. Bradley, December 28, 1800, $3,874: William H. Adams, September 11, 1893, $13,500 and $675 interest; Henry Drum, $12,225; W. J. Thompson $1,275: W. J. Thompson, $18,000; W. J. Thompson, president, and E. W. Ferrin, secretary, Bouth Side Land Company. $25,000. The men indicted are: Ex-President Walter J. Thompson, Vice President Henry Drum, Cashier Samuel Collyer, Assistant Cashier R. J. Davis. Judge Hanford fixed their bail in the sum of $2,500 each, and it was promptly furnished, follows: : Assistant Cashier R. J. Davis-Surety, Mc D. John Allister. Cashier Samuel Collyer-Surety, Gen. J a. Bradiey Vice President Henry Dram-Sureties, Hugh C. Wallace, Ferdinand T. Mead, Charles W. Morrill. Ex-President W. J. Thompson-Su -Sureties, George O. Kelley. William H. Fire. The indictments were handed in about 2 2p. m., and before 5 p. m. the men indieted had turnished bonds and departed from the office of Clerk Ayres, of the United States court. The warrant in each instance was given to Deputy Marshal Ed Minch, but before he had a chance to notify most of the men they appeared with bondsmen and inquired the amount of the bonds. Judge Hanford having gone to Seattle before the indicted men had an opportunity to appear Clerk Ayres prepared the bonds. Before reading the indictment all the officers assured a reporter of the Tacoma bureau of the POST-INTELLIGENCER that in no case could any premeditated criminality be found in connection with the affairs of the Merchants' National. When Vice President Drum and Cashier Collyer were notified of the nature of the several counts they both intimated very strongly and emphatically that the charges were all bosh. "How about the alleged false entry of promissory notes? they were asked. Both replied that it would appear upon the face of the indictment that the paper referred to was the renewal of old notes, which Mr. Collyer said was quite proper. It is alleged in the the indictments that most of this paper, which it is charged was falsely entered. was not given for any value received, and was therefore straw paper, the indictment further alleging that such false entry of such paper being made in most instances to deceive Bank Examiner Charles Clary. The only witnesses indorsed upon the indictments as appearing before the jury were Receiver Robert Wingate, of the Merchants' National, and E. J. Cooper, who was one of the principal bookkeepers. Mr. Cooper, the indictment alleges, made the alleged false entries of the alleged straw paper, and he did so for the officers who were indicted for the purpose of willfully, fraudulently and feloniously defrauding and working injury to the bank association, which had no knowledge of their nets. By the use of the alleged straw paper for the purpose of deceiving the bank examiner. it is understood, the officers were intent upon making him believe the bank was not in a condition which the alleged straw paper made it appear. Mr. Clary for a long time kept a very close watch of the bank and examined its condition frequently. Most of the notes were to run for ninety days, and the alleged false entries consisted of entering the notes in the book known as "Bith Discounted Registered.' This was done, it is alleged, when the truth was that the notes were not purchased or discounted by the bank, and such entry was therefore false and fraudu. lent. While the bonds were being prepared the rise and fall of the Merchant's bank. and subsequently the Merchants' National bank. of Tacoms. was discussed with the Indicted officers by a representative of the POST-INTELLIGENCER This bank was the oldest in the city, and was the second national bank here. It was made a national bank, with $50,000 capital, in May, 1884 In the "boom" days, back in the old directors' room and the larger room back of it, which was used for general assembly purposes, many of the biggest and most promising schemes this city ever dreamed of were planned and fostered. Those who participated were designated at the high tide point of the boom in 1889 as the "Merchant National bank crowd. There was another crowd known as the "Tacoma National bank crowd.' The two "erowds" never mixed Many still believe the rivalry of those boom days never died out, and vanished only with the death of the fallen bank Some, indeed. hold that this rivalry killed she Merchants' National, inasmuch as the clearing house failed to help the Mer chants' National when It was troubled with the death raitle. Right here an ex planation is needed. The Tacoma clear Ing house agreed to protect the depositors of the Merchants' National. It never agreed in so many words to meet the demands of the correspondents of the fail ing bank. On the last day of last May the clearing house association agreed to prosect the depositors, and on that day Cash for Collyer said: "The run was not marked I was in the paying teller's cage during all that noon hour, and was surprised at the quiet condition of affairs believed the storm
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robbed at Briceville, Mo., by two masked men. Valuable registered packages were taken. George Walker the murderer of John Terrell, was sentenced at Pittsburg, Pa., to twelve years in the penitentiary. Charles Williams was convicted on two counts and James Robinson on a single count of violation of the Kansas liquor law. Samuel Collyer, ex-cashier of the suspended Merchants' Nation bank, Tacoma, Wash., was arrested on an indictment charging that he had received $309 the day before the bank closed. He is a son of the Rev. Robert Collyer, the noted New York divine. The Nolin-Turner feud has broken out again in Hardin county, Ky., because of the killing of two Turners by Dr. Will Nolin. The killed are Dick Nolin, his brother John, a man named Mullins, and Mrs. Skidmore, a widow, near whose house the encounter took place.