19. Washington Alaska Bank (Fairbanks, AK)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
August 1, 1926*
Location
Fairbanks, Alaska (64.838, -147.716)

Metadata

Model
gpt-5-mini
Short Digest
fad52c87

Response Measures

None

Description

Articles describe the Washington-Alaska Bank as already defunct and in receivership; no article describes a depositor run. Receiver actions, auction of bank property (Aug 1926) and dividends to depositors (1927-1928) indicate the bank remained closed and in receivership (permanent closure). Receiver O. P. Gaustad was later indicted/convicted for embezzlement during his administration of the receivership.

Events (7)

1. August 1, 1926* Other
Newspaper Excerpt
On the Fairbanks courthouse steps ... M. R. Boyd, receiver and trustee for the Washington-Alaska bank, disposed of the Fairbanks property owned by the bank at public auction ... Saturday's auction completes disposal of real property of the defunct bank here, and increases the cash assets of the receiver by $18,150.
Source
newspapers
2. August 3, 1926 Other
Newspaper Excerpt
O. P. Gaustad ... charged in an information that he embezzled $28,000 while receiver for the defunct Washington Alaska Bank. has been bound over to the grand jury ... Bail was set at $20,000.
Source
newspapers
3. October 3, 1927 Other
Newspaper Excerpt
The trial of O. P. Gaustad, former receiver of the defunct Washington Alaska bank of Fairbanks, ... verdict of guilty was returned by the jury.
Source
newspapers
4. December 12, 1927 Other
Newspaper Excerpt
M. R. Boyd, receiver for the Washington-Alaska bank, was handed two checks this afternoon aggregating $28,029.02, the amount of the shortage in receivership accounts during the administration of O. P. Gaustad ... receiver will ask the court for an order directing a dividend of 12 1/2 per cent to depositors of the defunct bank.
Source
newspapers
5. January 19, 1928 Other
Newspaper Excerpt
District Judge Cecil H. Clegg of Fairbanks signed an order directing M. R. Boyd, receiver for the defunct Washington Alaska bank to pay the depositors of that institution a dividend of ten per cent out of funds now on hand.
Source
newspapers
6. * Receivership
Newspaper Excerpt
Litigation ... between Isabel Barnette and the receiver of the Washington-Alaska Bank ... will make it possible to complete the business of the receivership by fall - Fairbanks News-Miner.
Source
newspapers
7. * Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was insolvent/defunct and placed in receivership; administration later revealed alleged shortages and embezzlement by the receiver.
Newspaper Excerpt
the receiver of the Washington-Alaska Bank ... the defunct Washington Alaska Bank
Source
newspapers

Newspaper Articles (10)

Article from Juneau Empire, June 16, 1926

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Article Text

BANK RECEIVER WINS SUIT AGAINST WOMAN Litigation extending over a period of eight years between Isabel Barnette and the receiver of the Washington-Alaska Bank has been settled in favor of the receiver by mandate of the United States Supreme Court. A wire to that effect was received today by O. P. Gaustad. receiver. from attorneys in San Francisco representing the bank The mandate will release $45,000 on deposit in San Francisco: will enable the receiver to dispose of the bank's property in Fairbanks. composed of the Fairbanks Block, the R. C. Wood and Barnette residences: and will make it possible to complete the business of the receivership by fall-Fairbanks News-Miner. (Mrs. Barnette is the wife of E. T. Barnette. who was president and principal owner of the Fairbanks Banking Co., which was consolidated with the Washington-Alaska Bank just before the latter failed. It was charged that property and money given to his wife by Barnette were negots of the bank and the Ived sued to obtain it.) Use the Classineds. They Tay


Article from The Alaska Daily Empire, August 3, 1926

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Article Text

GAUSTAD HELD $20,000 BAIL FAIRBANKS, Alaska, Aug. 3.-O. P. Gaustad, arrested and released on $2,500 bail last Saturday, charged in an information that he embezzled $28,000 while receiver for the defunct Washington Alaska Bank. has been bound over to the grand jury at the conclusion of a preliminary hearing. Bail was set at $20,000. M. A. Thometz, Department of Justice Agent, has been here for two months investigating Ganstad's administration of the bank's affairs Gaustad resigned as receiver July 22.


Article from Seward Daily Gateway, August 6, 1926

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Article Text

FAIRBANKS BLOCK SOLD FOR $14,000 BIDDING AT RECEIVER'S AUCTION LIVELY FOR VALUABLE BUSINESS PROPERTY On the Fairbanks courthouse steps at 10 o'clock last Saturday morning, M. R. Boyd, receiver and trustee for the Washington-Alaska bank, disposed of the Fairbanks property owned by the bank at public auction Bidding for Lot 5, Block 14, consisting of the Fairbanks block, was fairly spirited and the property went under the hammer to Mrs. M. O'Bryan and McIntosh & Kubon for $10,000. The receiver was not empowered to sell for an amount less than $12,000. Martin Knuppe and Arthur McGowan opposed the successful bidders until the $14,000 mark had been reached. The Fairbanks block comprises the building and lot occupied by the Fairbanks Cigar store, Jake Marks and William Handley and the lot occupied by the Pinska store and the Red Cross drug store. The Barnette residence was sold to H. H. Ross for $1,000. He was the only bidder. The auction of the R. C. Woods residence drew more bidders than any other parcel. Bids starting at $500 increased in amount until the house, furniture and lot were knocked down to Edward Stroecker for $3,000. Lot 4, Block 93, situated near the L. K. Pratt residence, went to Paddy Driscoll for $150. There is no house on this lot. Saturday's auction completes disposal of real property of the defunct bank here, and increases the cash assets of the receiver by $18,150.


Article from The Nome Nugget, August 7, 1926

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Article Text

GAUSTED BOUND OVER TO GRAND JURY Fairbanks, Aug. 1. Causted. the receiver of the Washington-Alaska Bank. which went defunet a few years ago, was bound over to the Grand Jury at the conclusion of a reliminary hearing. The bail will be fixed at twenty thousand dollars


Article from The Kusko Times, October 2, 1926

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Article Text

At a preliminary hearing in Fairbanks, 0. P. Gaustad, former receiver and trustee of the Washington-Alaska Bank, arrested and charged with the embezzlement by bailee of $28,127.82, was recently bound over to the grand jury by Additional Commissioner Albrecht. Bail was set at $20,000. Complaint against the defendant 2 was brought by M. A. Thometz, special investigator of the Bureau of Investigation of the Department of Justice, who had been in Fairbanks since early in June checking up the affairs of the receivership. An audit of the books of the receiver was begun on July 10 upon order of the District Court, and this audit, although not yet completed, shows an alleged shortage of the above mentioned sum.


Article from The Kusko Times, February 5, 1927

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Article Text

JUDGE RITCHIE SUBSTITUTING FOR JUDGE CECIL H. CLEGGG FAIRBANKS.-Judge E. E. Ritchie, who is substituting for District. Judge Cecil H .Clegg in the Gaustad embezziement case, has granted a change of venue at the request of the defense, and will try the case during the Anchorage term of court, in May or June. Gaustad was appointed receiverr for the defunct Washington-Alaska Bank of Fairbanks by Judge Clegg, and is now under indictment charging him with the embezzlement of $28,000.


Article from Seward Daily Gateway, October 3, 1927

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Article Text

# GAUSTAD FOUND GUILTY The trial of O. P. Gaustad, former receiver of the defunct Washington Alaska bank of Fairbanks, on charges of embezzlement, terminated at Valdez on Thursday, Seward arrivals report, when a verdict of guilty was returned by the jury. The sum involved on the charge was $105.00, according to District U. S. Attorney Julian Hurley, who left Seward today for his Fairbanks offices.


Article from The Daily Alaska Empire, December 12, 1927

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Article Text

BOND COMPANIES PAY RECEIVER'S DEFICIT IN FAIRBANKS CASE (Fairbanks News-Miner) M. R. Boyd, receiver for the Washington-Alaska bank, was handed two checks this afternoon aggregating $28,029.02. the amount of the shortage in receivership accounts during the administration of O. P. Gaustad. This morning, when the cases of M. R. Boyd, acting as bank receiver, VS. O. P. Gaustad and the National Surety Co., and M. R. Boyd vs. O. P. Gaustad and the United States Fidelity & Guarantee Co., were to come up for trial, attorneys representing the bonding companies expressed a desire for settlement. An agreement was reached that each company should pay half the shortage and payment was made at 2 o'clock in open court. The National Surety Co., was represented by Guy B. Erwin and the United States Fidelity & Guarantee Co. by John A. Clark. Louis K. Pratt acted for the receiver. It is understood that within a few days the receiver will ask the court for an order directing a dividend of 12 1/2 per cent to depositors of the defunct bank.


Article from Hyder Weekly Herald, January 7, 1928

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Article Text

M. R. Boyd, receiver of the defunct Washington - Alaska Bank, of Fairbanks, recently received checks aggregating $28,029.02, the amount of the shortage in receivership accounts during the administration of O. P. Gastaud, who was recently sentenced to the penitentiary in connection with the defalcations. The money was paid by the surety companies in settlement of the shortages, after a suit brought by the present receiver had been called for trial in the district court. It is understood that the receiver will shortly ask for a court order directing a dividend of 121/2 per cent to the depositors of the defunct bank.


Article from The Wrangell Sentinel, January 19, 1928

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Article Text

DEFUNCT BANK PAYS TEN PER CENT DIVIDEND District Judge Cecil H. Clegg of Fairbanks signed an order directing M. R. Boyd. receiver for the defunct Washington Alaska bank to pay the depositors of that institution a divi dend of ten per cent out of funds now on hand. When this dividend has been paid the depositors will have received 60 per cent of the amounts they had on deposit in the bank at the time of the failure. This will be the fourth dividend and