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ALASKA BANK GOES ON FINANCIAL ROCKS (Special Bulletin Cable.) FAIRBANKS, Alaska, Jan. 5.-The Washington-Alaska bank of this city has suspended operations.
Washington Alaska Bank (Fairbanks, AK)
Episode Information
- Episode UID
9491119291333- Episode Type
- Run → Suspension → Closure
- Bank Type
- state
- Bank ID
-
949111929hash - Start Date
- January 5, 1911
- Location
- Fairbanks, Alaska (64.838, -147.716)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
a2ce6e3dbdd217dd
Response Measures
None
Description
Failure followed heavy withdrawals plus alleged losses on Gold Bar Lumber stock and inability to obtain correspondent loans.
Events (3)
1.
January 5, 1911
Run
- Cause
- Bank Specific Adverse Info
- Cause Details
- Withdrawals by small depositors triggered after vice-president failed to realize on Gold Bar Lumber stock and attachments were made.
- Newspaper Excerpt
- Small depositors started run that was beginning of end.
- Source
- newspapers
2.
January 5, 1911
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Suspension followed overdrafts, attachments and failure to realize on investments (Gold Bar Lumber) and inability to secure correspondent loans.
- Newspaper Excerpt
- The Washington-Alaska bank of this city has suspended operations.
- Source
- newspapers
3.
January 6, 1911
Receivership
- Newspaper Excerpt
- F. W. Hawkins was appointed receiver by the federal court today.
- Source
- newspapers
Newspaper Articles (24)
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Bank Failure in Alaska. FAIRBANKS, Alaska, Jan. 6.-The Washington-Alaska Bank, with deposits of $1,000,000. failed yesterday. A receiver was appointed. It is expected that creditors will receive 50 cents on the dollar.
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ALASKA BANK HAS SUSPENDED PAYMENTS. Fairbanks, Alaska, Jan. 6.-The Washington-Alaska bank, which has $1,000,000 on deposit, suspended payment last night, and F. W. Hawkins was appointed receiver by the federal court today.
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ALASKAN BANK quit PAYING TATING WASHINGTON, ALASKA, BANK HAD DEPOSITS OVER A MILLION DOLLARS. Failure of Vice President to Realize in Lumber Company Stock Was Cause of Failure-Small Depositors Started Run that Was Beginning of End. (By Associated Press.) Fairbanks, Alaska, Jan. 5. - The Washington Alaska bank which has $1,000,000 on deposit, suspended payment last night. F. W. Hawkins was appointed receiver by the federal court today. The cause assigned was the failure of Vice-president Jackson to realize on money invested in the Gold Bar Lumber company. Several depositors with CA ims of $11,000 attached the bank's property, and this led to the suspension. There is no disorder. All the other banks are sound and there was no run on any of them. The suspended bank is expected to pay fifty cents on the dollar.
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PAIRBANKS, Alaska, January 5.The Washington-Alaska Alaska bank of this city has suspended operations.
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Bank Closes Doors. FAIRBANKS, Alaska, Jan. 6.-The Washington-Alaska bank, which has $1,000,000 on deposit, has suspended payment and F. W. Hawkins was appointed receiver by the federal court yesterday. The cause assigned was the failure of Vice-President Jackson to realize on money invested in the Gold Bar Lumber Co. Several depositors, with claims of $11,000, attached the bank's property, and this led to the suspension.
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FAILURE AT FAIRBINKS Alaska Bank With Million on Deposit Went to the Wall Fairbanks, Alaska, January 7.-The Washington-Alaska bank which has $1,000,000 on deposit suspended payment last night and F. W. Hawkins was appointed receiver by the federal court.
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gold GUST. 2010 If this money is seized and reverts it to the credit of the bank here will materially help in the adjust ment of the depositors' claims. but last ner no official news had been received regarding it. As a great deal of pessimism exlisted in regard to the probable basis of settlement of claims the commitfee decided to issue a statement on Saturday evening in regard to the situation as it appears to them at that time This was as follows: "After interviewing the bank re ceivers and getting all information possible it is our opinion that the depositors will receive not less than of 60 per cent ,with a good chance recovering more of their deposits. "By the committee: "ED T. WOLCOTT. "F. S. GORDON "E. W. GRIFFIN. "L" R. PEOPLES "W E ROBERTSON." Working all day yesterday the receivers arrived during the afternoon a stage of their work which enabled at them to forecast the probable outcome. and the statement printed on the front page of this issue tells the story. Both Mr. Mack and Mr. Hawkins state that the estimated payment of 70 per cent. is based on conservative figuring and they entertain hopes of being able to do even much better than this. In the meantime. however. they call on those who owe the bank to come forward and liquidate their liabilities. as in this way the settlement with the depositors will be materially expedited. On Friday morning the Citizen wired its correspondent in Seattle instructing him to obtain interviews with Captain Barnette W. H. Parsons and J. Albert Jackson. In the evening the following dispatch was recrived in reply: Alaska Citizen. Fairbanks. Captain Barnette is in Los Angeles. Vice-President J. Albert Jackson was seen this afternoon and he had the following to say: "The suspension of the Washington-Alaska bank is due to the fact that Captain Barnette and myself were unable to raise the necessary money to carry us over the winter The bank is therefore forced to close temporarily. but it has ample securities to pay off every dollar that it owes and I have no doubt that the necessary arrangements will shortly be made under which the institution will be enabled to resume business "The Alaska banking business is a peculiar one. In order to properly carry on this business it is necessary to borrow from Seattle banks In order to properly carry on business we must loan money to miners to operate their claims during the winter. The loans are repaid in gold dust when the cleanup is made in the spring. Owing to the climatic conditions it is absolutely impossible for miners to harvest their gold before spring. And in that respect the assets of the bank cannot be available before June. "In order to carry on our business it is necessary for us to borrow money from Seattle banks and repay it in June or early in July by gold bullion which is turned into Alaskan banks in return for loans made this year. "However, we were unable to get financial assistance from Seattle or even San Francisco banks. notwiththat Captain Barnette of his personal standing fered to give security in addifor the payment of the loan tion to the securities held by the Naska bank
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FAIRBANK'S BROKEN BANK. Depositors Will Soon Begin to Receive Dividends. Fairbanks, Alaska, Jan. 9.-The receiver of the Washington-Alaska bank, which closed its doors last week, announced today that a sixteen per cent dividend would be paid the creditors on January 16. The statement says that from present indications depositors would eventually receive seventy cents on the dollar and possible as much as ninety cents.
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# SEATTLE BANK # WAS HARD HIT ALASKA BANK WHICH FAILED HAD LARGE OVERDRAFT WITH SEATTLE CONCERN. Seattle, Wash., Jan. 13. -That the Washington-Alaska bank of Fairbanks which suspended last week, had an overdraft of $141,000 with a Seattle bank was brought out by the seizure at Cordova, Alaska, Wednesday of $101,000 in gold and currency. The failure of the Washington-Alaska bank was due indirectly to the large demands put upon it by Iditarod, Kuskokwill and other camps in the north, following its consolidation with another bank. The Washington-Alaska bank had deposits in excess of $2,500,000. Fresh gold discoveries caused many to leave Fairbanks and they withdrew their deposits.
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BANK CARRIED BIG OVERDRAFT Alaskan Institution Victim of Stampede of Depositors to Other Fields Seattle, Jan. 13.-That the Washington-Alaska bank of Fairbanks, which suspended last week, had an overdraft of $141,000 with the Seattle bank was brought out by the seizure at Cordova, Alaska, Wednesday of $101,000 in gold and currency. The failure of the Washington-Alaska bank was due indirectly to the large demands put on it by the stampede to Iditarod, Kuskokwim and other camps in the north, following its consolidation with another bank. The Washington-Alaska bank had deposits in excess of $2,500,000. Fresh gold discoveries caused many to leave Fairbanks and they withdrew their deposits.
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The receivers of the Washington-Alaska bank rendered to the city council on Friday night a statement of the city's finances as they appeared on the books of the bank Statements of accounts from Octol
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The Washington-Alaska Bank at Fairbanks, Alaska, with deposits of $1,000,000 suspended payment.
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Again, the News-Miner takes it as an ominous sign that on January 11 Barnette wired to the bank offering to return $50,000 of his profits in the Gold Bar deal, stating that he does this as a sop to possible prosecution. The same paper goes on to say that the bank offered a 6 per cent. distribution to depositors on January 11, without any adjudication on the part of the court, because Dave Yarnell, Jack Sales the Jessons and other heavy depositors had agreed to waive their right to any share in that distribution of the available cash. It also further alleges that although the DexterHorton bank of Seattle had said that the Gold Bar stock was worth $300,000, they refused to loan $250,000 on it and thus precipitated the bank's failure. Again, on January 13, the News-Miner comes out with a Seattle telegram to the effect that W. H. Parsons, formerly of the Washington Trust Company, lays all the blame for the bank closing on Frank Hawkins, who with E. H. Mack, is now receiver of the Washington-Alaska. He says that if Hawkins had not stopped a shipment of $100,000 at Cordova, that all would have been well. It appears that the W.-A. had an overdraft in Seattle of $141,407. After the shipment of the $100,000 Hawkins found, that owing to heavy withdrawals of de posits in Fairbanks, he was without cash and stopped the shipment. Parsons says this the cause of the failure. Hawkins' reply to thi is that Parsons' voice is less influential in the councils of the Dexter-Horton people, with whom he now is, than it was with the Washington Trust Co , and that the loan he advised to the latter institution might not have appeared advisable to the Dexter Horton management. He suggests further that the action of Mr. Parsons in selling out the W.-A. bank and the interests of the people who had supported him for the previous four years, is open to fully as much criticism as his (Hawkins') reluctance to reduce the cash on hand at his end. In the Alaska Citizen of January 16, it is said that a dividend of 16 2-3 per cent would be paid to depositors that day. It also said that a writ of assistance asked for by the receivers from the court was responsible for stopping the shipment of $100,000 at Cordova, and that it was more than likely that this sum would be available for payment to the depositors, unless the Dexter-Horton bank succeeded in grabbing it before it could be re. turned. Captain Barnette at Los Angeles was heard from on January 12, when he was reported to have said in an interview that he did not understand how it was the bank had failed. After recounting that he had severed
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matter of the had been dislength by Dr. preBradley, cussed ington-Alaska at a much resolution bank adopted. was This Aline in effect sented and the bank was January looted charges between 4. 1911. that October by the 1. officers the 1910. reand of the bank: that neglect. and owners grand jury refused affairs: or and cent examine into its a fit pered to C. Hawkins is not should son to act It also removed. that E as receiver and urges the ex be call another grand jury: the abilan abiding faith and and fidelity asks for the court ity presses to of and the in court exdistrict appointment attorney. of an accountant to amine the books. called the meeting Dr. Bradley nominated Miner Bruce to order and Miss Cambridge was asked as chairman to act as secretary the details Dr. Brad of ley then went into of the depositors Barnette the transactions with Captain bank's committee her account of the The matter and gave since the consolidation declared history of the dividend and then the in April was called taken attention up to the withthe five preceddoctor drawals made by Barnette months Bar said. "During the purchase." vstematically she draw ing had been the bank nette his money from time were ing out issued during this $13,000; June Checks May $148, March, $45,000; July, $47,000; August or a 000. $69,000; and September, $32,000. total It was of $345,000. during the the month Washington of Sep tember. 1909, was that bought with Fair the Alaska Lank the depositors of money the of money of it had no banks bank. good for part of its capital in own. a been paid stock its never having to October ac 1. Barnette From February, closed 1910, out his down during count. 1910. having drawn In addition. tw $294,890 which that time valued at $43,000. bank gold brio ks go through the Barnette did not to Mrs. $10. all. were shipped time the sum of or Jesson Since has that been raise! by turned over 000 property and the Circle Barnette This makes by Bar a to Mrs. of $731,000 taken out the am un total two years. And even greater. in making than is nette $4,000 in were for listed no checks less up the moneys drawn to Against were Barnette totals." the there credits Banking out by the old Fairbanks the Gold company stock him Bar Lumber by of $200,000, company continual and credits check$341,000. In of stock ing out and had evidence of of the depositors in this unloading them. con the spiracy to defraud securities to were speaker Referring said committee that the these not so much refused by the of a considera account a of on as through of lack Barnette suspicion was play- Bar nette the hope tion She said of blinding securities ing the for grand time jury end. in for And the he accom- of the plished his the receivers the grand were and accepted and bank tendered indict." ney jury failed to then attacked Robarts Attorfor by default, The Pratt doctor case allowing to go the depositors attachment of the the were were paying a allowed the stating attorney dissatisfied that they all to think action that $500 to go be month through, had even though it might the legal. to the condition it as of her that not bank Referring the speaker another stated cent would is belief ever be paid to the the resolution depositors adoptFollowing by the meeting month of SepWhereas in the Washington-Alastember, corporation ka ed bank, 1909, a the of the organized state of in the laws doing business diFairbanks, the Washington, under city of Alaska, was at its Fourth place that of vision of therein, and upon directors the of the month business officers owners and stock their and transferred said thereof thereof company, stock sold to and a the corporation Fairbanks the organ Bank- state ing laws of Barand to who owned nette ized of Nevada, under and his the associates, the one said E. Fairbanks T. controlled consideration Banking is reported and that company sale of The which to $150,000 be the for $250,000, stock of bonus remaining of said sum the was Washington-Alaska of par value $100,000 of the was bank, Washing- a and for the good and was and his the ton-Alaska one bank W. will H. Parsons their appropri- own ated by associates for said sale, the immediate At the time of company was and more Fairbanks use. Banking the Washington-Alas solthan ka insolvent bank was mining no camp, of center, which vent. The of Fairbanks is Fairbanks a company, of the Banking was town declining. at The that $302,602.14, time, had hand the sum the purchase on said sum, the Washington. of which stock of after payment of the and the sum of the From the Washington said Alaska $52,602.14 bonus, bank of left the but said time the of Bankacquisition bank by the its officers, the Ala_ka company and bank Fairbanks continued corporWashington-Alaska its own its business name, but under under of the E. manage- T. Barate direction and dummies, nette, about the time until October, ment on and his or 1910, associates during -Alaska first which bank day save re- of mained Washington-Alain condition have been incurred by whatever the in losses, a solvent if reason any, may of actual
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It was 22 below at Whitehorse on November 8th. Mr. Steve Regan, an attorney at law has decided to locate in Haines. An ad in the Skagway paper reads: "If you want to get a skate on, see us." Mass meetings are being held at Ruby City, to protest against the cost of provisions. The City of Vancouver, B. C.. was visited by a ten-inch snow fall early this month, when the mercury stood at 16 above. Samuel H. Graves, president of the White Pass & Yukon Railroad, was found dead in his bed, on the morning of the 13th inst. Fifty thousand dollars' worth of gold nuggets will be a part of the Alaskan exhibit at the Northwest land projects show soon to open at St. Paul. Senator Poindexter says he is satisfied with Secretary Fisher's Alaska policy. That's the first thing he has been satisfied with for some time. Although bids were asked for by the government for carrying the mail to Iditarod over the Seward trail no contract has been given. The bids were too high. John Atkinson. a guest at a White. horse hotel left $130 under his pillow, for safety while he went to breakfast. The Star says there were no identification marks on the money. The first big storm of the winter struck Nome on the 10th. A raging blizzard whipped the roadstead into a fury and the waves undermined the buildings on the water front. A.C. Hastings, a Nome miner, has brought suit against Congressman Sul. zer, of New York. He demands $800, which he claims is due him for services he rendered to Sulzer at Nome in 1907. The Washington Alaska bank, of Fairbanks, which closed its doors Jan. 4th, 1911, paid its third dividend of 16 per cent on the 11th of the month. When the bank failed it had liabilities of $900,000. The steamship Admiral Sampson, of the Alaska Coast company, is on her last voyage this year between Seattle and Alaska points. She will be placed on the Seattle-San Francisco run for the winter. Capt. G. W. Robertson, the well known Vancouver pilot, died on the 10th. He had been a pilot since 1889. Capt. Robertson brought the ill-fated steamer Islander to this Coast from Glasgow in 1888.
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LATEST SENSATIONAL NEWS Washington, January 5.-The report of the geological survey has just been issued. In it the Alaskan coal and mineral resources are largely dealt with. Particular stress is laid upon the high grade of the coal found in the Matanuska fields. The visit last summer of Joseph A. Holmes, director bureau of mines, Alfred H. Brooks, in charge of Alaskan mineral resources, together with their assistants and Snmner Smith, mine inspector of Alaska, has resulted in securing more definite data and a clearer idea of the coal seams of the Matanuska and Bering fields than was ever had before. These men preceded Secretary Fisher to Bering River and made an exami nation before he arrived. They then accompanied the secretary to the Matanuska district and after he left they continued their investigation. They are now well qualified to appear before the proper committees of Congress and to give expert information when the coal question is under discussion. Los Angeles, January 5.-Capt. E. P. Barnette, who has been indicted in connection with the failure of the Washington-Alaska bank at Fairbanks last winter, has received word from his attorney in Fairbanks that his case has been set for trial on April 1st, at Fairbanks. His attorneys went from San Francisco recently to appear before Judge Overfield in an argument for a change of venue to Cordova or some other point in Alaska, claiming that the people of Fairbanks were prejudiced in the matter and that he could not receive a fair trial there. The telegram just received indicates that the motion was denied. Capt. Barnette and others concerned will remain south until March, during which month they will leave for the north. Battle Creek, January 4.-The town is alive with a big sensation. H. M. Deering, cashier of the Albion National Bank, and son of Palmer M. Deering, one of the town's most prominent citizens is a confessed defaulter. He has been living at a high rate of speed for years past. When it was found that there was something wrong in the accounts at the bank experts were put on the books. They soon realized that a shortage of $144,000 existed, and the cashier was placed under arrest for both embezzlement and forgery. He broke down and confessed to the crime. The bank has been SO crippled by the shortage that the directors decided to close it and suspend business. The depositors will all be protected. San Francisco, Jan. 2.-This city is very much in earnest over the effort to secure nedded legislation for Alaska. The commercial bodies and citizens generally are exerting themselves in every way to interest Senators and Congressmen, not only from this state but from other states, to take up the fight for the northland. A delegation has been selected to go to Washington and there to boost for everything that will aid the early development and prosperity of Alaska. This delegation will leave in a few days for the national capitol. It is composed of William M. Bunker, George T. Marye, Jr., Robert A Roose, and Paul T. Carrol. They expect to remain several weeks, or as long as they think their efforts will be of any avail. Columbus, January 2.-After much importuning and after many letters of invitation had been circulated among Republican leaders throughout the state, less than one hundred probressive Republicans were gathered together here yesterday. They succeeded in forming a state organization. An effort was made to endorse the candidacy of Senator Bob Lafollette for the Presidency. But when the vote was taken on the resolution but 32 were in favor of it and 52 opposed, indicating that there was a decided difference of opinion among the progressives. The organization poured oil on the troubled waters by declaring that LaFollette was the embodiment of the principles believed in by the progressives. They also passed a resolution declaring against the renomination of President Taft. Thus the slate remains clean and the organization is in position to later favor the nomination of the man that they believe will prove the Moses to lead the country out from their darkness. Both Mr. Garfield and Mr. Pinchot declare that this man is Teddy Roosevelt. Winnipeg, January 3.-A domestic sensation that has been furnishing food for scandal in the south had its culmination here yesterday. J. B. Snead is a big cattleman of Texas, who counts his herds by the thousands and his dollars by the millions. He has a very attractive wife who, however, was not entirely satisfied with the ranch life. She was thrown in the company of A. G. Boyce, a wealthy clubman, of Fort Worth, and soon they became sooul mates. Their environs were too confined in the lone star state SO they decided that they could no longer endure the enforced separation that for a time would keep them apart for days, when their mutual longing was to be together for ever and a day. So they appointed a rendezvous and skipped out together, taking the limited train north. They safely reached this city and had been here two or three days before Shead's detectives located them. They were both arrested yesterday and when Boyce's affinity was told that her husband was on his way from the sunny south and would reach Minneapolis today she expressed a willingness and a desire to join him. The novelty of the escapade had worn off, and after a few days with the wealthy club man she realized that he was not the attentive lover of the uncertain days before he was sure of her. Boyce seems not to be much concerned and the supposition is that he is willing that the affair be dropped. And in the meantime he says he thinks he will take a trip to Europe. Mrs. Snead has gone to Minneapolis and it is expected that a reconcilliation will take place, as the husband is dazzingly fond of her.
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J. ALBERT JACKSON ARRESTED AT PORTLAND Fairbanks, Feb. 2.-Seventeen indictments have been returned against Frank C. Hawkins, cashier and receiver of the Washington-Alaska bank, charging him with converting funds and securities of the bank to his own use and for the benefit of those not entitled to participate therein. Hawkins was arrested but immediately afterwards released on bail of $23,000. The bail was furnished by E. W. Griffin and Dave Cascaden. It is believed that secret indictments are on file against officials of the original Washington Alaska bank. Portland, Ore., Feb. 2.-J. Albert Jackson, accountant, and former cashier of the Fairbanks Banking Company, who was secretly indicted by the grand jury sitting at Fairbanks, was arrested here yesterday charged with embezzlement. After a preliminary hearing he was released on $6,000 bail. Fairbanks, Feb. 2.-A. J. McArthur, brother-i inlaw of E. T. Barnette, and former Fairbanks druggist, was arrested at Munson's roadhouse Wednesday night while on his way Outside. He is charged by the receiver of the Washington-Alaska bank with attempting to evade payment of his obligations. The grand jury adjourned Tuesday.
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Frde. C. Noyes, receiver of the Washington-Alaska Bank at Fairbanks, will leave for home on next Saturday's stage.
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The suits of Receiver Frank G. Noyes against the stockholders of the late Washington-Alaska bank will be tried at Fairbanks at the October term of the district court. The suits involve about $400,000.
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SUE FOR $625,000 FAIRBANKS, Alaska, April 15. -Two suits have been started by F. G. Noyes, receiver of the Washington Alaska bank, to recover $625,000 from directors and stockholders of the bank.
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CREDITORS FILE SUIT TO RECOVER ALASKA DEPOSITS SEATTLE, Sept. 4.-Two suits were filed today in the King county superior courts by creditors against the defunct Washington-Alaska bank of Fairbanks. The first was brought by Elizabeth Smart, who asks the restoration of $856.25 in deposits. The second was filed by W. A. Shinkle, who asks $2804.52 and the appointment of a receiver for securities held in this state by the bank and its parent company, the Fairbanks Banking Company.
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Fred G. Noyes was an arrival on yesterday's boat and left on this morning's train for Fairbanks, to close up his business as receiver of the Washington-Alaska bank.
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Mr. and Mrs. F. G. Noyes, of Fairbanks are numbered among those who are visiting in Seward for the present. Mr. Noyes at one time was receiver for the defunct Washington-Alaska bank, in Fairbanks.