Click image to open full size in new tab
Article Text
Tacoma, Oct. 16.-The Commercial bank, organized under the state law, did not open today, Judge Parker, at the request of stockholders, having at a. m. appointed S. M. Nolan, one of the directors, receiver. This action was brought about by City Treasurer McCauley calling on the bank to pay $6,300, the city's balance on deposit, on short notice, the city needing the money to pay interest in New York. The application was made by Fremont Campbell for the bank, and he was appointed attorney for Receiver Nolan. The latter's bond was fixed at $25,000, with W. J. Coggswell, R. B. Mullen and Judge Frank Allyn as sureties. When the city's demand was made President Frank Allyn called the directors together. They met yesterday at p. m. and were in session nearly all night, deciding early this morning that it would be unprofitable to continue business longer. Papers in the receivership case were then prepared, with the object of liquidating. The bank's liabilities are between $40,000 and $50,000, and the assets over $160,000. The last statement of the Commercial bank, made on May 31, showed: Loans and discounts, $235,369; cash on hand, $24,008; certificates of deposit, $13,461: deposits subject to check, $62,765; undivided profits, $18,710. The bank was organized in December, 1891. Its stockholders include a number of wealthy New York men. The officers and directors of the bank are: President, Frank Allyn; vice president, O. K. Hiscock: cashier, Arthur Bridgman; W. R. Rust and J. H. Price. The city's deposit of $6,000 has been guaranteed by Mr. Rust, who is manager of the Tacoma smelter, and Mr. Hiscock. The money will be promptly paid by these gentiemen. To the Post-Intelligencer correspondent Judge Frank Allyn, president of the closed bank, gave the following statement: "The Commercial bank was organized about four years ago. A little less than three years ago I became its president. The panic of 1893 followed soon after. At that time the bank had, in addition to a large general deposit list, over $110,000 of city funds and $60,000 of county money. We paid the city promptly until its balonce was reduced to about $6,000, and gave the county back every dollar. Since the panic we have paid off our depositors until less than $40,000 remains. We paid this money during a period when the great majority of financial institutions have been unable to reduce their liabilities in any such proportions. Since the failure of the Bank of Tacoma and the persistent street talk incident to it there has been a steady but quiet withdrawal of funds. We have realized for two weeks past that a steady run was on, either incident to the late failure or from other causes which we have been unable to locate. In the meantime every effort has been made to realize on our securities, which are ample, if they could be cashed, to pay depositors four times over. At a late hour Monday night we were notified by the city that its balance of $6,000 would be checked out the next morning. Of course we had not anticipated this, although we were making every effort to realize on securities. We confidently expected, until a late hour last night. that we would succeed in cashing certain securities, enabling us to pay the city and any one who wanted their money. At a meeting of the directors last night, we decided that, as our anticipations had not been realized, there was no other course left open. in justice to our stockholders and creditors. than to go into liquidation, inasmuch as the city was insisting on the immediate payment of its account. This was done by the appointment of Mr. S. M. Nolan as receiver. In three months we will be able to pay off all our creditors and have a handsome surplus for the stockholders."
