18390. Northwestern National Bank (Portland, OR)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 10300
Charter Number: 10300
Start Date: March 28, 1927
Location: Portland, Oregon (45.523, -122.676)

Metadata

Model: gpt-5-mini
Short Digest: 95a6057f

Response Measures

Accommodated withdrawals, Full suspension

Other: Assets were assigned to two other Portland national banks who assumed deposit obligations and liquidated the bank.

Description

A run beginning March 28, 1927 (caused by unfounded and malicious rumors) led the bank's directors to assign assets to United States National and First National banks and liquidate the Northwestern. Depositors were paid in full; stockholders and other banks provided guarantees and cash. Assignment/liquidation occurred March 29, 1927.

Events (4)

1. December 23, 1912 Chartered

Source: historical_nic

2. March 28, 1927 Run

Cause: Rumor Or Misinformation
Cause Details: Unfounded and malicious rumors (circulated by telephone) triggered heavy withdrawals beginning March 28, 1927.
Measures: Bank stayed open late, waived customary 30-90 day notice for savings withdrawals, paid out nearly $2,000,000 first day; other Portland banks rushed $15,000,000 in cash to stop the run.
Newspaper Excerpt: run today on the Northwestern National bank of Portland ... by unfounded and malicious rumors circulated by telephone, started this morning and continued until the close of business tonight.
Source: newspapers

3. March 29, 1927 Suspension

Cause: Rumor Or Misinformation
Cause Details: After suffering heavy inroads from the run (attributed to malicious rumors), directors assigned assets to two other banks and decided to liquidate the Northwestern; depositors paid in full and savings withdrawals were allowed without the usual notice.
Newspaper Excerpt: The Northwestern National bank of this city closed its banking career today when it assigned its assets to the United States National and First National banks of Portland in consideration of their assuming the deposit obligations of the Northwestern.
Source: newspapers

4. May 3, 1927 Voluntary Liquidation

Source: historical_nic

Newspaper Articles (22)

1. March 29, 1927 The Independent-Record Helena, MT

Article from The Independent-Record, March 29, 1927

Click image to open full size in new tab

Article Text

HEARING IN COURT HEIRS-AT-LAW CITE ADMINISTRATOR ON A SHOWCAUSE ORDER Affairs of the estate of J. C. Furman, deceased, of Augusta, are the subject of hearing opened yesterday before Judge A. J. Horsky in the district court, on petition of the heirs-at-law that the administrator, Alex Chisholm, show cause why the estate should be closed and the assets distributed, and why he should not be ordered to render a complete accounting, and thereafter be relieved of his responsibilities as administraMr. Chisholm was on the stand most of the time yesterday. The hearing was recessed at 5 p. m. until this morning at 10 o'clock. C. A. Spaulding is attorney for the petetitioners, and John G. Brown for the administrator. RUN ON PORTLAND BANK Portland, Ore., March 28.-(AP) 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. BATTLE IN MEXICO. Mexico City, March 28.-(P)-Six rebels were killed and 100 captured and 34 federal soldiers were killed and 20 wounded in a fierce combat at Cerro Picachos, state of Jalisco, last week, it is reported in dispatches from

2. March 29, 1927 The Waukesha County Freeman Waukesha, WI

Article from The Waukesha County Freeman, March 29, 1927

Click image to open full size in new tab

Article Text

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.

3. March 29, 1927 The Oshkosh Northwestern Oshkosh, WI

Article from The Oshkosh Northwestern, March 29, 1927

Click image to open full size in new tab

Article Text

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, 1927 The Portsmouth Times Portsmouth, OH

Article from The Portsmouth Times, March 29, 1927

Click image to open full size in new tab

Article Text

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

5. March 29, 1927 Chippewa Herald-Telegram Chippewa Falls, WI

Article from Chippewa Herald-Telegram, March 29, 1927

Click image to open full size in new tab

Article Text

Rush Fifteen Million to Stop Run on Bank Portland. million dollars in cash was rushed today to stop the ern National bank which began late yesterday and continued today. The money was sent from San Francisco, Seattle and Spokane, Wash. The Northwestern National bank day passed into the hands the National bank and the First National bank. Transfer of the bank and decisions to liquidate resulted from heavy inroads made by the run. small crowd of depositors hand when the bank opened today.

6. March 29, 1927 The Hanford Sentinel Hanford, CA

Article from The Hanford Sentinel, March 29, 1927

Click image to open full size in new tab

Article Text

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

7. March 29, 1927 The Times-News Twin Falls, ID

Article from The Times-News, March 29, 1927

Click image to open full size in new tab

Article Text

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.

8. March 29, 1927 The Bulletin Bend, OR

Article from The Bulletin, March 29, 1927

Click image to open full size in new tab

Article Text

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

9. March 30, 1927 The Register-Guard Eugene, OR

Article from The Register-Guard, March 30, 1927

Click image to open full size in new tab

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."

10. March 30, 1927 Evening Baker Herald Baker City, OR

Article from Evening Baker Herald, March 30, 1927

Click image to open full size in new tab

Article Text

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.

11. March 30, 1927 Daily News New York, NY

Click image to open full size in new tab

Article Text

The NEWS in Tabloid NEW YORK. Slain Albert Snyder's search of night clubs for divorce evidence is revealed through smoke screen of conflicting statements raised by the accused wife and lover and their prosecution. Leonard Kip Rhinelander's demand for annulment of his marriage fails in the Court of Appeals. Alice hints at separation suit of her own now. Tax appraisals of the estates of Matthew A. Wilks and Morton S. Paton, filed yesterday, showed net assets of $1,051,491 and $1,089,152 respectively. Albany.-Women outlive men in the state's insane asylums, the department of mental hygiene announced. Announcement made by Fifth Avenue Coach company that $100,000 will be distributed among its 1,850 employes as a bonus. UNITED STATES. Portland, Ore. (P).-Fifteen million dollars in cash was rushed here to stop a run on Northwestern National bank. Holden, Mass. (/P).-Mrs. Almira Edson Ballou Titus, Holden's oldest resident, observed her 104th birthday. Ithaca, N. Y. (P).-Commander Richard E. Byrd, polar flyer, announced he may attempt his proposed non-stop Atlantic flight next month. Washington, D. C. (A).-The administration has been asked to sponsor a national conference for discussion of crime prevention, and President Coolidge and Attorney General Sargent are considering the feasibility of such a meeting. FOREIGN. Managua (P).-Official word was received here that Liberal forces have occupied Jinotega, near Matagalpa. Conservative forces withdrew. Vienna (AP).-Alois Hollerer, Vienna railway official admits pushing wife over 100-foot precipice but probably will escape prosecution, as she refuses to testify against him. Montreal (AP).-There were 167 new cases of typhoid in last 24 hours, bringing total since March 4 to 1,438, of which 52 resulted in death. Port of Spain, Trinidad.-The U. S. army's Pan-American flight squadron will leave here today for Puerto Cabello, Venezuela. Rome (P).-Pope Pius received in audience sixty officers and enlisted men of the U. S. cruiser Memphis. London (AP).-Capt. West of the British army and two members of his expedition into Northern Burma to free slaves have been killed by natives, the India office has been advised. Buenos Aires. Buenos Aires university medical students invaded the office of Dr. Belou, dean of medicine, and compelled him to resign. SPORTS. Golden Gloves amateur boxing tournament is to be run every year by the DAILY NEWS. Cups will be awarded two-time winners. Co-bperation of Metropolitan A. A. U. officials made success of great Golden Gloves tourney possible. Tex Rickard waives all right to that Latzo-Dundee championship fight, recently signed by Sig. Humber Fugazy, and wants to know when a contract is binding. St. Augustine, Fla.-Giants, with aid of fumble by Travis Jackson, drop one to Cleveland Indians, 7 to 4.

12. March 30, 1927 The World Coos Bay, OR

Click image to open full size in new tab

Article Text

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.

13. March 30, 1927 Statesman Journal Salem, OR

Article from Statesman Journal, March 30, 1927

Click image to open full size in new tab

Article Text

Bank Assigns Assets; Deposits Guaranteed Northwestern National Closes Following Unfounded Run PORTLAND. March 29 (AP) The Northwestern National bank of this city closed its banking career today when it assigned its assets to the United States National and First National banks of Portland in consideration of their assuming the deposit obligations of the Northwestern. Depositors are receiving 100 cents on the dollar on their deposits. and are subjected to no delays in getting their money Those accounts are in the savings department of the bank are not being required to give the stipulated 30 to 90 days notice in order to withdraw their accounts. This was the policy decided upon by the board of directors for the Northwestern Monday when the run on the bank began After weathering the withdrawal of more than $2,000,000 during the first day of the run. the directors of the bank entered into an agreement with the Portland Clearing House association, the United States National and the First National banks. who are both in turn backed by the federal reserve. for the payment of all deposits on demand. The circulation of rumors, characterized by heads of the First National and United States National as "malicious and unfounded." led to the run on the North western. it declared. J. C. Ainsworth, president of the United States National said tonight: "After an investigation covering all of Monday night and Tuesday we have every confidence that the securities held by the Northwestern National will pay out in full and we are most regretful that this unholy attack on their business made the liquidation of the Northwestern advisable. ortceridl The Man's Shop saves you a ten dollar bill on every quality suit. Shirts, hats, ties, collars. High grade clothing. perfect fitting. long wearing. 416 State. (*) The newest creations in Spring Hats at the Vanity Hat Shoppe. Each hat possesses charm all its own. Beautiful designs and colOTS. 389 Court St. (*)

14. March 31, 1927 The Oregonian Portland, OR

Article from The Oregonian, March 31, 1927

Click image to open full size in new tab

Article Text

Pub. disIdaho United 10c. address SAVERS AND There significant phase of liquidation of the NorthNational bank that haps not yet been made clear. through which United States National bank and the First bank House the in full, also the of and them they might the the bank forced into receiverThe Clearing with and full realization of the doubt whatever the participating banks in the transaction, stockholders the came, effect, endorsers large They pledged their individual, their guarantee the banks that liquidating the affairs would themselves cents for dollar paid out by them. The willingness of these stockholders moral (they not liable event for more than double of their stock, which less than the guaranty they gave) plain evidence similar moral obligation protect depositors from would accepted by them had institution been forced receivership. They would have paid their own pocknecessary, just they contract to assets shall deposit liabilities. The National bank not in precarious longer than week ago rigidly inspected national bank examiner given clean health. Moreover, had among its stockholders, hereinbefore noted, men with profound duty depositors, financial ability to them had assets been impaired. That the alarm depositors, only on gossip was has been amply by the which their money made Though the stockholders gain nothing by the method used protect though would time, the far the entire had holders indifferent. Liquidathrough receivership tediDepositors in bank failed subjected prolonged this not final their claims. to be avoided, any other And depositors' but fraction story might pened. The failure large institution would have brought doubts rumors concerning other banks in its wake. would have up money needed in trade industry. would reduced volume of mercantile and other collecprogbright gloom, distress All has The both and full in An vigoran asset and source forced of business. And stockholders have suffered their primary the bank disastrous hapnot occasion for present fact is to escaped those persons instigated contributed inexcusable risk financial, business dustrial assumed terrible thrive in the region of the Columbia basin. prospered in cretaceous period Greenland at somewhat later time along the southern coast. Why disappeared from these localities interesting presentday foresters because may furnish its revival in rigorous this problem already engaging the of savants. not to the of the initial in the Grays Harbor district, view rapidity with which the reafor that an ideal the large of forest following other conifers. THE PRESIDENT HANKERS FOR It now is President Coolidge, he spends his vacation the that region which easterner stretches vaguely beyond Pittsengage in hunting as means of recreation. He will not desert his first the pliant, willowy trout rod, but he will take up good gun now then and him forth game. Report it that the president moved this decision by recollections of boyhood days in the Vermont mountains. when he harried bounding cottontail with his grandsire's recalls haste of noble creature, cottonits dodgings stratagems, and pungency of black powder in his nostrils. But know your monter, even lad, probable that future president drew near the brown bunny stealth, cautiously removed yarn the musconvenient crotch, took judicious aim, trigger calmly, rabbit dumplings. Boom! roar away into those come back faint Boom! Well, newspaper so finest. Here the Tartars, all the soldans. We can and do without hesithat be this piscatorial then, course, to hunting, We they used to call painter in that they would call bear, three other deer, of kinds of plain or timber trifles these. the blacktailed three other sorts and silver grey most and that of thing. And tucked here there the hazel, hanging pegs cottonrabbits and All the of mont, yet what could more western Oregon?

15. April 1, 1927 The Great Falls Leader Great Falls, MT

Article from The Great Falls Leader, April 1, 1927

Click image to open full size in new tab

Article Text

FORMER FALLS MAN MANAGER PORTLAND BANK Mark Skinner Was Manager of the Institution Which Was Taken Over in Portland by Two Other Great Coast Banks. The taking over of the Northwestern National bank of Portland the United States National and the First National of Portland, told in The Associated Press dispatches in The Leader, is of local Great Falls, Mark Skinner, formerly of this place, was president and manager the The bank was one which some deposit. but ternal troubles are understood started rumors, and after the of Tuesday, the bank staying open until o'clock, decided that the other two banks should purchase the and take its assets over in division between the two The Northwestern building landmark Fortland, being 16 stories in height. understood that the internal dissension in the bank decided the directors to sell out to the other banks rather than go ahead under the circumstances. and is also understood here that the stockholders came out without loss. Mark Skinner raised in Great being connected for number years with the First National bank. working up boy. was connected with the Stanton bank in its organization, leaving to organize the Commercial National bank. leaving here 1916 to take presidency of the First National of St. Paul, and leaving that institution five years ago take the vice presidency and later the management of the Portland bank. in which he had some $50,000 in stock. and member of the board of directors. It understood that Mr. Skinner will retain Interest in the Portland and become connected with one of the other Institutions.

16. April 6, 1927 Evening Baker Herald Baker City, OR

Article from Evening Baker Herald, April 6, 1927

Click image to open full size in new tab

Article Text

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. April 11, 1927 The News-Journal Lancaster, PA

Article from The News-Journal, April 11, 1927

Click image to open full size in new tab

Article Text

THEATRES Playhouses In New York, Once Part Of John Jacob Astor Estate Newspapers Of Oregon City Are Hit By Failure Of Northwestern National ASSESSED AT ALLEGE MISMANAGEMENT $2,200,000 New York, April theatres heart Times tion having close sold by Robert Dowling Walter Reade who concontrols chain theatres this and other cities. The properties involved the Astor, located Street Broadway. The Astor Theatre and building. the largest has frontage of the north side and depth of 100.5 feet. Bijou, which adjoins, has frontage Street depth while the Morasco occupies plot 100 by 100 Assessed $2,200,000 The plots frontage feet Broadway and 308 feet Street and assessed the City New York taxation purposes the at $2,200,000 corner occupied by the Astor Theatre of the valuable the Times section, there eight on FortyStreet, between and Eighth sites the three theatres just Mr. Reade formerly the John Jacob Astor and public auction by Joseph Day and Clarence Davies in the Astor in that sale the first bid made when Astor Twelve bids finally sold to Mr. Dowling for that time $960,000. Others Then Sold for $350,000 The Bijou Moresco Theatres and offered as one parcel and started finally for which was less the values the property by the city upon the home tonight. San April 10. land, Ore., has within the past ten days been shaken by the suspension and collapse the Northwestern tional Bank. While the Northwestern has been reckoned among the older stable banks, it has held popular running tween and More ago the resignation was nounced, and the fact leaked out that the Olmstead regime had weakened the institution. that re-establish the stockholders been assessed 100 per cent their holdings. That started run on the bank, which was stopped only when the First National and United States National guaranteed payment depositors. did prevent the fall of the The trouble appears to have grown out loose manner large Knowledge of unbusinesslike of large accumulation of assets have escaped the stockholders. Only few weeks the reorganiz.:tion offers $125 were made outstanding $100 par, with market quotations at with few shares offered. Assets Equal Liabilities Despite the collapse, assured the the are fully equal to Only the will direct losers the aggregate sum of about $2,000,000. stories afloat that the management was in persons to whom alleged illegitimate advances had been made. Criminal charges will be presented. but their definite There been active bidding for the Northwestern Building, the prevalue is about $2,500,000. offer that said rumor identifies this offer the Bank Italy the both of Francisco. Indirectly the newspapers of Portland involved current sip. The Pittock majority owner The Oregonian, was the larg. est owner broken bank, and understood that the Pittock trustees actually put up more than to make up the bank's losses. The proprietor The Evening Telegram reported to have heavy loser, and has that in the that will pass either rival, The Evening Journal or to the Hearst organization.

18. April 12, 1927 The Berkshire Eagle Pittsfield, MA

Article from The Berkshire Eagle, April 12, 1927

Click image to open full size in new tab

Article Text

INDUSTRIAL NOTES Col. Hugh L. Cooper. retired United States engineer, sailed on Leviathan to begin work at once on the hydro-electric project near Odessa, Russia. Will make Dnieper river navigable for 1000 miles and permit of development of 650,000 horsepower. New York, Westchester Boston railway about to increase its train facilities and passenger accommoda tions at Harlem River terminal by 50 per cent, according to L. S. Miller. Increase in commuter travel has created congestion at Harlem terminal which must be remedied immediately. Average of 1,000,000 commuters month being carried by road. Edwin L. James, in London special to says it is generally conceded that British. already most heavily taxed people in world, will have to pay taxes to meet annual expenditure which will be between £820,000,000 and under new budget. British debt charges about an nually, while those of Germany are maximum of French war debt cost is 50 per cent more than German maximum. It almost conclusion that of new taxes will bring. comments Britain' pay. ments to United States: These pay. ments aggregate eight per cent of total debt costs and four per cent of total budget. Leading insurance companies of country will make no further investment in junior railroad securities without definite assurance, in the form of "living" rates, that carriers will be permitted to earn sufficient to protect principal of such securities according to virtual ultimatum to be presented by repesentatives of insurance companies to interstate commerce sitting railroad rate hearing at Kansas City. About 50,000 anthracite miners put to work on full time Monday, It announced by several of the large coal-producing companies operating in Luzerne county, Pa., and adjoining regions. Glen Alden and Hudson Coal companies are two re. suming full time. One factor in resumption prospect of much earlier opening of lake navigation than year ago. Number of buses and trucks operat ed by railroads doubled during past year, according review by Dominick Dominick. Steam railroads 1926 operated 1300 motor buses with route mileage of 11,440; and 265 motor trucks with route mileage of 5332. Independent companies in competition with railroad service, operat19,683 buses over 344,000 route miles and 43,532 trucks over 715,000 miles. Times says possibility of making high grade fuel from lignite deposits demonstrated by bureau of mines using cheap process of carbonization of raw lignite. Extensive lignite fields lie in states west of Mississippi river notably in North Dakota, Wyoming, Colorado and Texas. Dr. Abbot, scientist and acting head Smithsonian institution, says there possibility in future that millions of homes radio programs can be equipped with ma. chines modeled after "television" receiver, permitting visual as well as ordinary radio programs. San Francisco special to Times says Fortland, Ore., has been shaken by suspension of the Northwestern Na. tional bank, with deposits of between $18,000,000 and $19,000,000. Stockhold ers were recently 100 per of their holdings, which leaked out and run on bank started. First National and United States Na tional banks payments to depositors, but did not prevent collapse. Thought assets will equal obLarge of froz en and methods believed responsible for failure. Times London special says White Star line ordered from Harland Wolff, Belfast shipbuilders, what will be largest British motorship. er will be placed in London-New York service. Tonnage between 25,000 and 80,000. White tends to but date of laying keel has been fixed. Berlin wireless to Times numof unemployed in Germany being rapidly reduced, indicative of flourish condition industries. sons found work Berlin the past week, while the figure for the past six weeks 52,000, thereby reducing number of idle more than 20 per cent.

19. April 20, 1927 The Daily Worker Chicago, IL

Article from The Daily Worker, April 20, 1927

Click image to open full size in new tab

Article Text

MISSOURI'S BACKWARDNESS EXPOSED BY NATIONAL CHILD LABOR COMMITTEE Millions Withdrawn From Portland Bank After Its Failure PORTLAND, Ore., April Northwestern National Bank of this city has ended its business career. The Northwestern National Bank one the banks in this 35,000 depositors of some Definitely connected with failure of the bank. which was member of the Federal Reserve who involuntary receivership of the Portland Telegram. run the bank started on Monday morning. Crowds gathered long before opening hours and the bank paid accounts until o'clock. About was withdrawn the first day. Subway Fires Brings Holiday. An unexpected holiday was gained today 25,000 workers in the buildings along Eighth Avenue and the upper thirties due to the burning out power lines from two fires in the subway excavations. There no telephone, electric light nor elevator service available the work. By The Federated Press. Missouri's defeat of child labor reform law in the closing days of the legislature leaves her one of the most backward labor law states. The national child labor committee makes these counts against this central middle western commonwealth: In Missouri children under 14 may work in factories outside of school hours. In 36 states this would illegal. In Missouri child of 14 may receive permit to work without meeting any education requirement. states there some educational standard. and 35 require the completion of at least the 4th grade. In Missouri child of may receive permit to work without statement from the prospective ployer showing promise of employment and exact nature of the work to be done. In 20 states this would be required. In Missouri child of may receive permit to work without showing any documentary proof age. In states this required. Missouri the health of child applying for work permit may be passed on by any "reputable" physician. In states this examination must be made by specially thorized physician. Missouri also, the committee have added, one of the few states still without workmen's compensation law.

20. January 9, 1928 The Daily Herald Everett, WA

Article from The Daily Herald, January 9, 1928

Click image to open full size in new tab

Article Text

PRESIDENT BANK Jan. Emory Olmstead, former president of the Northwestern National bank which was liquidated last March after run, filed an answer in federal court today to suit brought against him other former directors the by Charles Burckhardt, stockholdBurckhardt sought to $60.C00 and interest for he charged the to bank's affairs by the directors that any act of his while director the closing of the bank He asserted the bank he signed president and director ruary 28, 1927, and by Price, trustee the H. Pittock estate Referring to the run on the bank last March. which said was due false and malicious rumors, said was paid depositors the first day of In tier months since the Northwestern tional bank paid to depositors all and none to He believed that there would be $2,500 available for stockholders. Discussing loan Wheeler Olmstead said amply secured He added Wheeler would be pay his obligations and those all companies. He added that than would remain intact the Wheeler problem is cleared crossed wires

21. January 26, 1928 The Spokesman-Review Spokane, WA

Article from The Spokesman-Review, January 26, 1928

Click image to open full size in new tab

Article Text

BELL'S WIDOW LOSES FIGHT SHOW BAD CHECKS to Get Insurance Major IN WHEELER CASE CHICAGO, Jan. 25. (AP)-The 66. year-old the 27 Introduced by Government in Building Evidence for Kiting Charge. BANK OFFICIAL TALKS Vice President Says Emery 01mstead Approved died the Transactions. PORTLAND, checks, $719,762. were introduced by govern. ment today support their contention that Emery Olmstead, former president the defunct Na tional bank, and Wheeler mer president the McCormick "kiting" which they now on The checks were among those listed the indictments the two men representing loss to the The checks were Identified by Mark the bank, and chief witness the day for the government. Eight the checks had been returned the Title and Trust Brookville, five by the Trust company of Titusville, Pa. Held Bank Assets. Each of the checks had been turned the mark. "not sufficient They are held part of the assets the bank which in the process of liquidation. The checks the government pointed the National bank by the McCormick Lumber company signed by Wheeler president of the were dated between February February 10, 1927. They bore the initials, identified by Skinner the of drafts the Wheeler Lumber company San De. cember 1926, totaling also admitted They had been returned to the NorthwestNational Although he was vice president of the bank and of its board of the Skinner today that he was not aware the transactions carried on by the McCormick Lumber and was not aware the large amount company owed the bank until Feb. ruary He admitted that Frank O. Bates cashier, other had to him that checks" had that he had been advised that matter had been taken care of after to the attention Olmstead. Agreed to Take Notes. Skinner testified the meeting the the bank October ratified by the board 1924, October 15, wherein overdraft Wheeler amounting to $350,000 acted and to secure this But the four deposited, one from the McCormick Lumber and other from the Wheeler Timber company for relation to the overt indictment, said that prior the the last March, sulting ultimately in the closing the the alleged check the cooperation Olmstead, not general information the bank's He he refused employees. to approve on this account December, 1926. Much the testimony today was ment hopes build case. Admits Unusual Practice. W. Becker, collection teller the National, final witness the day His department, he said, took care returned checks of the McCormick Lumber company. An unusual tice was admitted that Olmstead was notified they had been returned the the series, called Wheeler his keeper, but was told that the matter would be taken Olmstead These dishonored checks which were the possession of his checks by Wheeler's When him they bore the initials signify that they had been presented the president of the bank and by him approved. After notifying Wheeler the first few the were his said, then the matter up directly he said, that "I'll see that they are care of."

22. February 22, 1928 The Klamath News Klamath Falls, OR

Article from The Klamath News, February 22, 1928

Click image to open full size in new tab

Article Text

Just Ramblin' Around (Editor's Note: This series of communications will appear in the Evening Herald and Morning only per cent of the 7500 subscribers or the Herald and News take both papers). On the Cascade Limited Sunday, Feb. 19th. YOU see the broad counA try bordering the railroad when you travel south you are impressed with that eloquent saying. "An Empire Awakening. For such it is. Those who were responsible for draining Lower Klamath lake have the thanks of everyone but some sportsmen who still insists that the lake is needed to ensure bird supply. Yet most of those same portsmen will not turn their hand over to help decrease the hunting limit on birds. The thing that is exterminating the bird life of Klamath county is the hoggish hunter who gets the limit. and the hunter who shoots the birds and never even picks them up because it is an effort to carry them back to camp. That is the class of sportsmen who rear up on their hind legs and howl about draining Lower Klamath lake. It is a stock pasture now second to none in the country. and in time it will be the home of thousands of people, for the rich land when once tamed, makes an everlasting productive area. Weed highway is almost an assured undertaking. al though It is taking longer to get it started than many of us had expected. In Klamath county before the state line is reached there is quite a bit of construetion yet to accomplish. When I first looked at it there seemed to be little to do to make a good highway, but I can now see the need of a better and wider grade, possible change in location of some of the road and a general lining up of things to make it hitch onto California's end when the state decides to act. What that highway will do for Klamath Falls will be marvelous. It means as much as the erection of another Weyerhaeuser mill. Down at Weed and at Tennant, R. A. Long has been spending his money for years and those camps are firmly established. The men will all come to Klamath as soon as the road is open. They will come to have a good time. see the shows. and buy a lot of their supplies Siskiyou country is a gem in the California constellation, for Siskiyou is bound to do her part In the building of that highway. She is the most unselfish country in the golden state and I'll bet Governor Young a new hat on it. According to the selfish rules of mankind Biskiyou would say she "does not choose' to build a road that will aid another community. But not so: she says she will help and she is helping in mighty materlal way to get the road in action. RINDING Emery Olmstead and Jack Wheeler guilty in the Northwestern National bank case at Portland is causing a lot of talk among people who travel. One is rather surprised to see the interest that seems to have been taken in the case by those outside the state. All of which proves once again that a bank is peculiar kind of business and those who are given to talk and gossip should watch their step in talking about a bank. That Is why we have state and federal laws to bridle people's tongues regarding financial institutions, for the slip of the tongue relative to the solvency of a bank is a really serlous matter. Wheeler and Olmstead are not accused of that particular offense, but there are those in Portland who assert others talked too much and that talk caused the Northwestern National to close up shop and the stockholders to pocket loss that would build several sewer plants in Klamath Falls. Not so long ago woman appeared in an Idaho community selling silk underwear. She canvassed the community and in the coy feminine manner dropped remark here and there that a certain bank was not safe. She was a stranger in strange land but her poison did the work and a run on the bank followed. proving disastrous to the institution. So, people can cuss a newspaper and a newspaperman with imunity. they sling mud at their grocer or their meat man. can even abuse the laundry owner. all in the conversational gossipy way. but they must not light upon banks with such abuse.