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THE BOISE STATE BANK SHUTS DOORS [UNITED PRESS LEASED WIRE.] Boise, Ida., Dec. 19.-The Bolse State Bank was closed today by the state bank examiner. The bank is a small institution, the deposits being less than $150,00. The capital stock is $50,0000. No statement of liabilities has yet been made. Edward Payne is president and chief stock holder. President Payne declares .depositors will be paid in full. The failure caused no runs on the other banks.
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BOISE STATE BANK CLOSES ITS DOORS Financial Circles Shocked by Failure of Institution to Continue Business. CLOSED BY OFFICIALS Clearing House Could Not Come to Aid of Distressed Bank in Time. Special to The Tribune. BOISE, Ida., Dec. 19.-The failure of the Boise State bank here today, which proved a shock to financial circles and caused a sensation, started a miniature stampede among frightened depositors of other banking institutions, which was quickly checked by the announcement of the clearing house that all other state and national banks here have from 35 to 60 per cent of their deposits on hand in actual cash and could pay out within twenty-four hours The Bolse State bank was closed by order of State Bank Commissioner V. W. Platt. It is capitalized for $50,000. which is known to be a total loss by the failure, and at the time of its suspension had about $29,000 in cash or collateral representing cash on hand. and its cash liabilities amounted to $187,000. Between 300 and 400 Individual depositors are financially handicapped by the failure coming at this time of the year. when money was in demand for Christmas. All day long a crowd of anxious depositors hung around the bank's entrance endeavoring to secure Information. Commissioner Platt authorized the statement today that the bank's condition was presented to the clearing house last night in the hope that the combined strength of all the banks might be thrown to its assistance. The clearing house estimated that it could stand for a shrinkage of 30 per cent on the loans and discounts, but not more, which it was believed would have to be discounted in the Boise State bank's paper. Failure on the part of the clearing house to relieve the situation and the fact that the reserve of the Boise State bank had fallen below 15 per cent as required by law forced the commissioner to close the institution. It is now believed depositors may be paid In full. The bank carries $170,000 in loans and discounts, and It is estimated that with a depreciation of 50 per cent in these there will still be sufficient to pay depositors. Edward Payne is president of the defunct institution. Its individual deposits on December 5. when the last statement was given. amounted to $99,275.60.
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BANK FAILS (By United Press Leased Wire.) BOISE, Ida., Dec. 20.-The Boise State bank was closed today by the state bank examiner. The bank is a small institution, the deposits being less than $150,000. The capital stock is $50,000.. No statement of liabilities has yet been made. Edward Payne. is president and chief stockholder. President Payne declares depositors will be paid in full. The failure caused no runs on other banks.
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NEWS AROUND THE STATE s S i Items From Various Places 3Reproduced for the Benefit s of our Readers--Stories Res hashed from Exchanges. e A deer was shot Monday in e the town limits at Kamiah. It was the fifth of its kind seen there within the past two weeks. John S. Roberts, formerly of Lewiston, was arrested late last week at Culdesac on a charge of introducing liquor on the reservation. J. Smith, until recently a salesman for the Lewiston Furniture company, was arrested at that place Saturday on a charge of embezzling $40 of the firm's money. J. B. West, Eugene Gasser and Gus Thiessen returned to Lewiston Tuesday from a hunting trip in the upper Clearwater country and had six deer to show for their efforts. The Boise State Bank, a small institution, closed its doors Monday and is in the hands of the state bank examiner. Its failure was due to loaning too much money on bad secuaity. August Hartman, an I. W. W. adherent, was arrested at Lewiston Saturday for assaulting the chief of the fire department. Hartman was in jail when the assault occurred and was taken to the county jail later. The C. A. Hardin crop of about were at 3,000 purchased sacks of Lewiston club wheat Saturday comcents a pany by the for Vollmer-Clearwater 67 bushel, which was from one to two cents a bushel better than the regular market quotations for that grade of wheat at that point. The Genesee high school basket ball team defeated the Spokane high school team at Genesee on Monday evening by a score of te 24 to 20 in a very fast game. a The Spokane team admitted it had lost to a better team and the victory makes the Genesee team champions of the Palouse country. fu At a meeting of the farmers b of SaturL were day the resolutions Ilo-Vollmer section passed railroad asking the Camas Prairie to B change the name of the station y at Vollmer to "Finch" and pledged themselves to support the new town for the permanent county seat of Lewis county. If the railroad company grants the request the Ilo-Vollmer town fight will probably be wiped out for good. da Roy Thompson, a 17-year old B boy residing at Kamiah, had one h leg badly broken at Winona Sunno day by having his horse fall on w him. The boy was running a th horse race with another boy and ill his unshod pony slipped on the as frozen ground and slid for quite de la distance, catching the rider an with the above result. Young Thompson was taken to his home wi at Kamiah for repairs, arriving he there about midnight. de Wa U.S.G. Evans, charged with ch falsifying the records of the an Farmers Bank & Trust Co. of Kendrick while serving the compal pany in the capacity of secretaryaf treasurer, was acquitted by a Re jury in the district court at Moschi cow Saturday on the first ballot. In As there are twelve other counts tes against Evans and he is to be tried on all of them the th above decision is by no-means a be conclusive one. Evans was bonded for $10,000. which sum was
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boise State Bank Closes Its Doors. Boise, Dec. 19-The Boise State bank closed its doors and suspended business on the notice of State Bank Commissioner V. W. Platt today. Financial difficulties which have been pending for a month and which pressed the institution hard are said to have been the cause of the faiture. From the best information obtainable the affairs of the bank are in such condition that the depositors do not stand to lose their funds, but will probably be paid within thirty days. The Boise Clearing House held a meeting into the late hours of last night in an attempt to save the institution, but failed, due as no medium could be provided to prevent the closing of the bank's doors. Commissioner Platt is in complete charge of the institution and following a careful inspection of the bank's books will give out a statement of the actual conditions.
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IDAHO BANK CLOSES DOORS Miniature Stampede of Depositors at Boise Started by Failure of the Boise State Bank. Boise, Idaho.-The failure of the Boise State bank on Tuesday, which proved a shock to financial circles and caused a sensation, started a minia ture stampede among frightened depositors of other banking institutions, which was quickly checked by the announcement of the clearing house that all other state and national banks here have from 35 to 60 per cent of their deposits on hand in actual cash and could pay out within twenty-four hours. The Boise State bank was closed by order of State Bank Commissioner V. W. Platt. It is capitalized for $50, 000, which is known to be a total loss by the failure, and at the time of its suspension had about $29,000 in cash or collateral representing cash on hand, and its cash liabilities amount. ed to $187,000. Between 300 and 400 individual depositors are financially handicapped by the failure coming at this time of the year, when money was in demand for Christmas. All day long a crowd of anxious depositors hung around the bank's entrance en deavoring to secure information.
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IDAHO BANKER IS ARRESTED ON CHARGES OF EMBEZZLEMENT Associated Press Dispatch. Boise, Idaho, Sept. 30. - Edward E. Pavne, former president of the Boise State Bank, was arrested this afternoon on six indictments charging embezzlement and falsifying reports to the state bank examiner. The bank was closed last December and since has been in the hands of a receiver.
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BOISE STATE BANK SCANDAL BREAKS Boise, Idaho, Oct. 2.-Edward Payne, former president of the Boise State bank which failed a year ago, was arrested late yesterday on six indictments charging embezzlement and making false bank reports to the state bank examiner. He furnished bonds of $1000 on each charge. Eugene Payne and J. W. Keefe. cashier and assistant cashier, respectively, of the Boise State bank, which closed its doors last December, must also answer indictments charging embezzlement and falsification of records. The bank was a small institution. having deposits of only $200,000. The state bank examiner was appointed receiver in order to relieve the creditors of expense and he has been in charge since the bank was closed, but no dividend has been declared and it is understood that the depositors will realize little. Edward Payne has been prominently identified with business enterprises in Boise for the past 20 years and was formerly president of the Idaho State Fair association.
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organized to provide practical industrial and agricultural training for those unable to take regular college courses. The instruction is given by the regular faculty of the college of agriculture. The students use the university's equipment and come in touch with its broadening helpful influences. Asserting that they were maliciously discharged from the faculty of the University of Idaho at Moscow by M. E. Lewis, who was at that time president of the board of regents of the university, R. E. Hyslop, a professor of agronomy, and J. R. Shinn, an instructor in horticulture, have instituted proceedings in the supreme court against the board of regents and the state. Hyslop asks for a recommendatory judgment against the state in the sum of $1416.66 and Shinn wants a $1500 judgment. "The water supply throughout southern Idaho during the late summer months of the irrigation seasou has been far above the normal," said Don H. Bark, United States irrigation engineer. "Few instances of any shortage have been reported. Enormous crops are being reported from all sections of the state. Many canals are usually short of water during August, 'but this was not the case this year, due to the late run of the streams." Eugene B. Bayne, J. W. Keeffe, J W. Mchargue and Fred Rhodes were arrested at Boise last Saturday by deputies from the sheriff's office upon bench warrants issued by the district court following the return of indictments by the Ada county grand jury. Payne, Keeffe and Mchargue were indicted for making false reports con cerning the affairs and financial condition of the Boise State bank, which closed its doors by order of the state bank commissioner last December. Addressing an audience at Caldwell, Sept. 26, G. H. Martin, Progressive candidate for Governor, opened the Progressive state campaign by bitterly attacking Governor Hawley's administration: condemning the action of the Chicago convention in nominating William Howard Taft, and promising the people relief from all existing evils if his party should be placed in power. Mr. Martin was particularly severe in bis arraignment of Governor Hawley. He declared that the governor was a willing tool of the liquor, railroad and timber interests, and that the people were not receiving a square deal under his administration.
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DEPOSITORS OF BOISE STATE BANK TO MEET The depositors of the Bolse State bank will have a meeting next Monday night in the bank room to go over the affairs of the institution, investigate the conditions that have arisen, and to discuss matters that will be of general interest to all of the bank's creditors. Every depositor and stockholder is interested in the outcome of the cases now pending in the district court against the officers of the institution. The present financial standing of the bank and the prospects of paying the depositors back the money that was placed in trust there will be some of the matters that are to be discussed. The affairs of the institution probably cannot be definitely settled until after the cases now pending in court have been determined. V. W. Platt, as receiver of the bank, has brought several actions against persons indebted to the bank, while the grand jury has returned indictments against the officers of the bank.
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MUST COLLECT TAXES FROM BANK ITSELF The county must collect dellnquent taxes from the stockholders of the Boise State bank rather than from the bank itself. This decision was handed down by Judge Carl A. Davis in the suit of Herbert A. Ellsworth, county assessor, against V. W. Platt, receiver. The court allowed the taxes of the county against the real estate of the bank but refused the collection on the capital stock of the institution. The bank claimed that it was insolvent and that there had been during the year 1911 no undivided profits or surplus in its treasury from which to pay the taxes. It contended that the county should sue the individual members of the corporation for the taxes due upon the stock itself. Taxes on the real estate amounting to $95.99 were allowed and those upon the stock amounting to $1188.25 refused by the court.
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WILL EXAMINE RECORDS. Court Appoints New Receiver for Defunct Bolse Bank. Special to The Tribune. BOISE, Feb. 8.-The removal of State Bank Commissioner V. W. Platt as receiver of the defunct Boise State bank was the important development today in the trial of Edward and Eugene Payne, president and cashier, respectively, of the bank, charged with falsifying the records. Judge Carl A. Davis today 19sued- the order that made Ben Q. Pettingill receiver of the bank after 9 o'clock Monday morning, and relieved the present receiver of his duties in handling the property of the defunct institution. While the law prevents the bank commissioner from making a. report of the conditions of any institution in the state, a district judge may require the receiver of the institution to report each and every asset and debt that the bank has. Judge Davis has made the order and the full report, showing every good and every bad note in the place, will hereafter be part of the records of the district court in this county.
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FORMER BANKER IS CONVICTED AT BOISE Jury Says That Edward Payne Falsified Report of His Bank. Special to The Tribune. BOISE, Idaho, Feb. 9.--Edward Payne, president of the defunct Bolse State bank, who was tried on the charge of falsifying the reports of the condition of the bank to the state bank commissioner, was today found guilty by the jury, which deliberated on the case following its submission last night. Eugene Payne, cashier of the bank. tried on the same charge, was acquitted The jury returned its verdict this afternoon, having deliberated all of last night and up to a late hour today. Eugene Payne was tried on a second charge, that of falsifying the books of the bank. President Payne will be arraigned in the distriot court tomorrow morning for sentence. The Boise State bank failed more than a year ago. The greatest number of its depositors were poor people, and the 'affairs of the bank were in such shape at the time of the failure that dividends could not be declared by the receiver, and up to today none of the depositors has received even a part of the money placed in the bank. A jury returned indictments against the Paynes, and their trial has been in progress during the past two weeks.
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STATE AND COUNTY NEWS Items of Interest Gathered From Exchanges. OF INTEREST TO IDAHOANS. Events and Industrial Progress Of the Week. The steel bridge across the St. Maries river near St. Maries IS nearly completed. It cost $18,000, half of which sum was appropriated by the county and the rest by the state legisture of 1911. The omnibus public building bill reported to the lower house of congress last Saturday carries $85,000 for erecting a public building at Twin Falls and $70,000 for a building and site at Sandpoint. House robbers at St. Maries last Saturday ransacked one house where the family was away, but were frightened off when attempting to enter a second house, leaving behind the plunder they had taken from the first. The University of Idaho is to take an important part in stamping out the hog cholera 10 the southern part of the state. The manufacture of hog serum is to be at undertaken bacteriology once by the veterinary, and animal husbandry departments. A fusilade of bullets fired by police in in chase an Spokane of alleged highwayman, last Sunday morning, caused the death of Gustav Froistad of Laclede, Idaho. Though two was in head a died blocks the away, by Froistad stray bullet struck and in the hospital a few hours later. Because of the enthusiasm of the specially trained teachers of Ada county, the rural schools are going to the schools a run their in give position city vocational close training. for no with but With nothing almost enthusiasm equipment, for their work and a like enthusiasm for study in their pupils. the rural schools are said to be learning cooking, sewing, manual training and agriculture. The Boise State bank, it is said, will not over 25 cent pay per to the when its affairs are wound settled. depositors up and State Banking Commissioner Platt turned over to Re. ceiver Pettingill $22,500. The deposits of the bank at the time it was closed amounted to about $140,000. It is not thought that the notes held by bank will the bring much to the depositors, and it is not thought that more than 25 per cent of this amount can be collected. Accused of being overzealous in his enforcement of the law, M. S. Parker has been asked to resign as a deputy under State Pure Food Inspector James H, Wallis. It is claimed Mr. Parker prosecuted too many cases violation of law was one wherein merely technical, the instance being was sellthat was where ing machinery a merchant fined not for labeled with his name and address as required by law. Miss Jessie Hoover, professor of home economics in the state univeris enthusiastic the women's the sity, proposed building concerning at Moscow school. She is delivering a series of lectures to the women of Boise and vicinity upon home economics and sbowing how the high cost of living bugbear may be successfully killed off if the housewife would only use reason when making her purchases from the butcher, the baker and the candlestick maker. If the legislature should see fit to grant an appropria tion for the building she has several ideas in mind toward developing the best cooks in the world in Idaho.
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GET ONLY 10 PER CENT. Little Money Left After Failure of Bolse State Bank. Special to The Tribune. BOISE, March 6.-The several thousand depositors of the Boise State bank, which failed two years ago, will receive but 10 cents on the dollar, owing to the unfortunate condition in which the assets of the bank were when It went to the wall. Its president, Edward Payne, is now serving an indeterminate sentence at the Idaho state penitentiary, having been found guilty of fraud by the district court. Ben Pettengill, receiver of the bank, filed his report today with the district court. In it he shows that the depositors can only be paid 10 cents on the dollar. The total liabilities of the bank, the report states, amount to $149,018.66.
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BANKER IS PARDONED. Minimum of Sentence Imposed Brings Release to Edward Payne. Special to The Tribune. BOISE, Idaho, Aug. 11.-Edward Payne, convicted president of the Boise State bank, sentenced to serve from six months to two years in the Idaho state penitentiary, is a free man today, although he has been in St. Alphonsus hospital for the past week, having been taken there for an operation. His minimum sentence of six months has expired and a commutation of the state board of pardons, which is virtually a full pardon, goes into effect. During the time that Payne served in the penitentiary he was a model prisoner. The incarceration of Payne was the result of indictment by a grand jury in Ada county and later his conviction in the district court on the charge contained in the true bills of falsifying reports of the bank's condition to the state bank examiner. The indictment and subsequent conviction of Payne were the outgrowth of the failure of the Boise State bank two years ago. V. W. Platt, then state bank examiner, closed the institution and was later appointed its receiver. Indicted with Payne were his son, Eugene Payne, and the latter's wife, both employees in the bank. Following the conviction of President Payne, the Indictments against Eugene Payne and wife were dismissed.
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DEPOSITORS WIN O. W. Allen, whose name headed an alphabetically arranged list, and 218 other depositors of the defunct Boise State bank, whose funds were deposited between the date the bank was examined by the state examiner, October 25-27, 1911, and the date the institution was closel, December 19, 1911, will recover $30,240.98 on the bond of V. W. Platt, former state bank examiner, as the result of an opinion handed down Saturday by the supreme court. The court affirmed a decision by Judge McCarthy of the Third Judicial district, Ada county. The suit was brought by the state against Platt and the Title Guaranty & Surety company of Scranton, Pa., on behalf of all depositors who had placed money in the bank subsequent to Platt's last examination. A judgment was obtained in the district court, and the bonding company appealed. Diversity of citizenship was one of the assignments of error advanced. The supreme court held that, as none of the depositors for whom the suit was brought had a balance of more than three thousand dollars, the case was not one that should go to the United States court. The court also ruled on the question of interest the depositors were entitled to receive, and held that in the absence of a stipulation in the bond to the contrary, interest should begin to accumulate against the bonding company at the same time as against the principal obligator. Interest was therefore allowed to run from the date the bank's doors were closed. The judgment of the trial court was affirmed in every particalar. The opinion was written by Justice Morgan. His decision aws concurred in by Justice Budge.
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# ACTION AGAINST FORMER BANK. Following a decision of the supreme court last week William H. Blackman has filed action in the district court to recover on a mortgage given by the former Boise State bank to the amount of $14,144. This mortgage as given by the bank to secure Blackman prior to its bankruptcy, but was set aside by Ben Pettingill, receiver of the bank. The supreme court upheld Blackman in his action for foreclosure and suit is begun again in district court.
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DISTRICT COURT AFFAIRS. In the matter of the winding up of the affairs of the Boise State bank, the receiver's motion to set aside the order granting William H. Blackman the right to sue the receiver was denied. The demurrer to the second amended complaint in Emmett A. Evans, administrator. versus the Boise Valley Traction company, et al, was overruled. Defendants were given 10 days in which to strike. The motion to strike and elect was overruled. In Boise Title & Trust company versus Northwestern Investment company, defendant's demurrer to the complaint in intervention was sustained.
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DEFUNCT BANK RECEIVER MUST REPORT TO COURT Ben Q. Pettingill, receiver for the defunct Boise State bank, which failed in 1912, must appear in district court January 26, 1924, make his final report, turn over all moneys he holds as receiver, and show cause why he should not be discharged as receiver, Judge Raymond L. Givens ruled Thursday. The affairs of the bank have been completely liquidated, it is said, and discharge of the receiver will close out the last of its business.