Northern Bank & Trust Company (Seattle, WA)

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NORTHERN BANK AND TRUST CLOSED, RUN ON STATE BANKS FOLLOW BULLETIN SEATTLE, Tuesday. - Following the failure of the Northern Bank and Trust company this morning, a big run was started on the People's Savings Bank, which is regarded as one of the strongest institutions in the Northwest. Throughout the day there have been small runs on other state banks. National banks have been undisturbed by the crash, but on the contrary have opened many new accounts, while the Postoffice Savings bank has had the biggest day of its history in deposits. So great was the crush at the postoffice of people who had taken their funds from other banks that it was necessary to open two more windows to receive deposits.

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Seattle Institution With Million and a Half in Deposits Closed by Examiner. RUNS ON OTHER BANKS National Banks Are Not Being Disturbed by Flurry Which Is in Seattle. SEATTLE, Jan. 30.-The Northern Bank and Trust Company. with $1,500,000 deposits. was closed by the state bank examiner this morning. Ever since the failure of the Broadway State bank. several weeks ago, there has been sort of a run on the Northern Bank and Trust Company. The latter institution was allied with the smaller bank. A large number of Alaskans were caught by the Northern Bank and Trust Company's failure today, mainly through their acquaintance with W. L. Collier, president. Mr. Collier. while merely a clerk. went to Alaska, locating at Nome. and returned here gradually working his way up in the Northern Bank and Trust Company until he became a full-fledged banker. for the pasts year being president of the financial house. The failure of the bank today is attributed to loans of several hundred thousand dollars said to have been made to the Issaquah Superior Coal Mining Company, an alleged wild cat concern, promoted by Henri von Alvenslaben. The latter had operated extensively in British Columbia but his holdings were confiscated at the beginning of the war.

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SEATTLE TRUST COMPANY FAILS TO OPEN DOORS Concern is Refused Aid by the Clearing House and the Crash Follows. Seattle, Jan. 30.-The Northern Bank and Trust company, at Fourth avenue and Pike street, did not open for business this morning, and a notice posted on the door said that the institution was in the hands of the state bank examiner. William B. Collier is president of the bank and Cleveland B. Sandefer cashier. The clearing house met last Sunday and again last night to consider the condition of the Northern Bank and Trust company, and decided not to assist the bank, which had requested aid. Large withdrawals of deposits from the Northern Bank and Trust company are said to have followed the failure of the Broadway State bank two weeks ago. Concerning the suspension of the Northern Bank and Trust company, the executive committee of the clear-

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SEATTLE HAS BIG BANK FAILURE SEATTLE, Jan. 30.-The Northern Bank and Trust company, one of the largest financial institutions in the city failed this morning and its books have been seized by the state bank examiner. A line of depositors more than a block long was held in check for hours by the police, while they clamored for their money. It is reported that the bank is behind about $400,000. their deposits were $1,600,000. This afternoon three hundred depositors of the People's Savings bank stated a run on that institution because of the failure of the Trust company. The two banks are in no way connected.

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SEATTLE, Jan. 30.-At noon today a number of timid depositors of the People's Saving bank started a small run on that institution following the announcement of the suspension of the Northern Bank and Trust Company, The bank, being a saving's bank, does not have to honor checks without a 60 day notice but the management waived this right and paid all depositors in gold.

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NORTHERN BANK AND TRUST CO

OF SEATTLE ORDERED SHUT Had Been a Run on The Institution For Several Days, The State Examiner Steps In. SEATTLE, Jan. 30.-The Northern Bank and Trust Company, with deposits of over a million and a half dol. lars, was ordered closed this morn. ing by the state examiner who has been investigating the run on the institution the last few days. The run on the bank is said to be due to the fact that the President and other stoekhelder's were largely interested in the Breadway State Bank which closed its door# A shoft time ago. From those who claim to be informed of the condition of the bank, it is leared that it can meet with all its obligations in due time.

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SEATTLE BANK CLOSES DOORS (United Press Leased Wire.) SEATTLE, Jan. 30-The Northern Bank & Trust Co., at Pike st. and Westlake avenue, failed to open its doors at 10 o'clock this morning. The bank's liabilities are $1,600,000; assets, $1,100,000. The failure of the bank was anticipated following an examination of the affairs of the concern by the state bank examiner, Monday night. The Northern Bank & Trust Co. did the clearing-house business for the Broadway State Bank, and when the latter failed recently a run was practically started on the Northern bank. The withdrawals were steady, and Monday night the bank examiner decided to close the doors. The cause of the failure is said to be slow returns on loans, some made previous to the European war, to German interests. Both the Northern Bank & Trust Co. and the Broadway State bank were organized several years ago by W. Phillips, who is charged with making loans that eventually forced the closing of the banks. Phillips, for a time in Tacoma, is in New York city at present.

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Seattle Bank Failure Due to German Loans Scattle, Wash., Jan. 30.-The Northern Bank and Trust company, at Pike street and Westlake avenue, failed to open its doors at 10 o'előck this morn ing. The bank's liabilities are $1,600,000: assets $1,100,000. The failure of the bank was anticipated following an examination of the affairs of the concern by the state bank examiner Monday night. The Northern Bank and Trust company did the clearing house business for the Broadway State Bank, and when the latter failed recently, a run was practically started on the Northern bank. The withdrawals were steady, and Monday night the bank examiner decided to close the doors. The cause of the failure is said to be a slow return on loans, some made previous to the European war, to German interests. Both the Northern bank and Trust company, and the Broadway State bank were organized several years ago by W. Phillips who is charged with making loans that eventually forced the closing of the banks. Phillips is in New York city at present. The Northern Bank and Trust company has one of the best locations in the city. It is announced another bank has already offered $75,000 for its lease.

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of Seattle, Jan. 31-As a result the failure of the Northern Bank and Trust Company yesterday, depositors in great numbers demanded their money at all banks in this city with the exception of three of the largest National Banks. The run was most persistent on the savings institution, and when it was learned that the German American bank had failed to open its doors this morning, the excitment around the other banks grew intense. In anticipation of a feeling of unrest which might be made manifest this morning a great many of the banks were prepared with vast

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DEPOSITORS BECOME PANICKY AND DEMAND MONEY FROM BANKS Run Begins When Institutions Open Three Big Doors For Day's Business German-American Banks Exempt Fails to Open Today After Hard Run of amounts of gold, silver and currency Seattle, Jan. 31-As a result OIL their counters when they opened the failure of the Northern Bank all for the day's business, and and Trust Company yesterday, dedemands were met without any hesipositors in great numbers demanded tation on the part of the paying tell their money at all banks in this ers. city with the exception of three of The Seattle Clearing house gave the largest National Banks. all The run was most persistent on notice that it would assist solvent banks in meeting the dethe savings institution, and when it mands of their depositors, whethwas learned that the German Amer they were members of the assoerican bank had failed to open its doors this morning, the excitment ciatien or not. The advice does not state whetharound the other banks grew iner OT not the German American tense. In anticipation of a feeling of bank will re-open, but owing to the unrest which might be made mani- run which was made on that infest this morning a great many of stitution all day yesterday its doors the banks were prepared with vast were no+ opened this morning.

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Failure of Seattle Bank Starts 'Runs' on 2 Houses Seattle, Jan. 30.-A heavy run on the German-American Mercantile Bank commenced this afternoon, following the failure of the Northern Bank and Trust Company and the run on the Peoples' Saving Bank. Officials of the bank have posted a notice about the savings deposit windows that no demands will be met in that department unless noticè is given. A small run has also commenced on the Fremont State Bank, a city suburb. Sheriffs and officers in plain clothes have been placed in all banks where difficulties are expected.

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SEATTLE BANK FAILS LARGE RUN ON ANOTHER SEATTLE, Jan. 31.-The GermanAmerican Mercantile bank went into the hands of the state bank examiner following a heavy run on the institution today. A large run was commenced also on the Scandinavian American bank. The trouble was caused by the failure of the Northern Bank and Trust company yesterday. All the banks of Seattle are hard pressed. The federal reserve bank of San Francisco has offered aid to the banks which are members of the reserve.

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(Special to The Times

) SEATTLE, Jan. 31.-Big policemen stood in the doors of the Northern Bank & Trust Co. and faced a mass of bewildered humanity Tuesday morning. News that the institution had failed traveled fast by phone. Before the time for opening, at 10 a. m., men, women and girls had flocked there. The first few waited silently-expectantly. Then a young man on the inside posted notices, written in ink on bank stationery, in each window and on the doors. Read Fatal Notices. There was a sudden surge to read them. "Closed-This Bank in the Hands of State Examiners." Some laughed. Others muttered. Old women, gray-haired, clung hopefully to their places. It was cold and their lips got blue. "Is it any use to wait"" one of them asked a policeman. "I guess not, lady," he answered. She wormed her way out. They Read-and Depart. There were dozens like her-old and confused. Young women, evidently married, hurried to the edge of the crowd, craned their necks, and then jammed to the front, only to read the notices and depart. Those who had been there first and finally learned that it was too late to rescue their savings went away. They had prepared to participate in the final rush "run." No use. The place was closed. Got Christmas Card. "I got a Christmas card from

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SEATTLE, Jan. 30.-The Northern Bank and Trust Company. with deposits of over a million and a half dollars. was ordered closed this morning by the state examiner who has been investigating the run on the institution the last few days. The run on the bank is said to be due to the fact that the President and other stockholders were largely interested in the Broadway State Bank which closed its doors a short time ago. From those who claim to be informed ci the condition of the bank, it is learned that it can meet with Ellies obligations in due time.

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BANK GOES TO WALL

SEATTLE, Jan. 30.-The state bank examiner today closed the Northern Bank & Trust company's banking institution here. It contained something like a million and a half dollars in deposits, which, the examiner stated, the depositors will probably recover. The closing of the institution has been the occasion for a run on all of the other banks of the city.

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FINANCIAL SUCCESS A SECOND bank in Seattle closed late Wednesday. The German-American Mercantile Bank was the institution, while Tuesday the Northern Bank & Trust Co. suffered a devastating run. The First National Bank, of Seattle, of which Morris Arnold, a former Mexico boy is president, is one of the strongest institutions of its kind in this country, and the failure of two banks in that city has materially aided the First National in that its unquestionable stability has brought it new depositors during the present unfortunate financial conditions in that city. The First National of Seattle, of which D. H. Moss, who married Miss Anna Bell Arnold, is cashier, has deposits, according to its last statement, of $6,897,742.23, while its capital stock is only $400,000. Its surplus and undivided profits are $262,242.94. Mr. Arnold, who received his banking experience under his father, R. R. Arnold, who recently died in Florida, while President of the Mexico First National Bank, is one of the most capable and successful young bankers in America. His-financial success, according to his own statement, is due to the careful training he received under the direction of his father.

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CONFESSES TO FALSE ENTRY [Republicar A. P. Leased Wire] SEATTLE, March 22.-William L. Collier, president of the Northern Bank and Trust company, which suspended business January 30 last, owing $1,500,000 to depositors, appeared before Prosecuting Attorney Lundin in the latter's office today and confessed that he made a false entry in the bank's books September 14, 1916. The banker was immediately taken before Superior Judge Everett Smith and arraigned on a charge of making a false entry. He pleaded guilty and was sentenced from one to ten years in the state penitentiary.

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Eat at Savoy

110 S. Stanton. Banker Is Sentenced. Seattle, Wash., March 23.-William L. Collier, president of the Northern Bank and Trust company, which suspended business Jan. 30 last, owing $1.500,000 to depositors, appeared before prosecuting attorney Lunlin in the latter's office yesterday and confessed that he made a false entry in the bank's books, Sept. 14, 1916. He was sentenced to from one to ten years in the state pnitentiary.

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FORMER NOMEITESEATTLE BANK PRES

GOES PENITENTIARY on some of the Seattle banks. The Special to the Nugget. March SEATTLE, Broadway bank was the first to be 21 - Charged hit; next came the Northern Bank with falsifying the accounts of the and Trust Company and a few days o:hern Bank and Trust Company of which he was preside W. L later the German-American bank cclosed its doors, but s-from advices Collier pleaded guilty and was senreceived here-solvent. tenced to from one to ten years in A later wire received here today is penictnatary The state bank examto the effect that the sentence of the iners found that Collier Wis short in court is to be suspended as Collier his accounts over $30,000. has agreed to dig up the money to Will Collier is well known here cover his speculations. Also owing to where he was in the employ of the the fact that the further affairs of that Miners and Merchants bank for two summers. He has a host of friends institution cannot be straightened out both here and in Seattle all of whom without his adviceand explanation. It is estimated here that the bank will were thunderstruck at the announcement that he had falsified the acpay out from fifty to seventy per counts of the bank. cent of its deposits, which amounted A few weeks ago a run was made to over one and a half million dollars.

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Seattle, Wash., May 18.-William L. Collier, former president of the bankrupt Northern Bank and Trust company, which suspended business January 31 last, owing $1,500,000 to depositors, pleaded guilty yesterday to embezzlement of $63,000 of the bank's funds and was sentenced to five to 15 years in prison.

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Local parties who were involved in the failure of the Northern Bank and Trust Company. of Seattle. last year. were agrecably surprised to receive checks from the receivers on yesterday's mail for twenty percent of the amount due them as depositors at the To time the institution was closed add still further to their gratification, the checks were accompanied by a statement to the effect that the twenty per cent payment was only the first dividend and additional reimbursement may be expected

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What Is Bank Dept. Doing?

Editor The Star: More than five years have elapsed since the failure of the Northern Bank & Trust Co. The depositors have received an aggregate of 40 per cent of the amount of their claims. The last dividend, No. 8, was paid August 1, 1920, amounting to 10 per cent, and since that date nothing has been paid. No report has been made of the assets in the hands of the bank commissioner. He must have had some cash belonging to the depositors in order to pay his help, office rent and other expenses during more than two years since we received the last dividend.

Of course, the sooner he closes up the affairs of this busted bank the sooner some of the people now on his payroll will have to hunt for other jobs, but we cannot help but wonder what work the office force we are paying salaries to is doing all these years on the Northern Bank affairs.

Would it not be fair for the bank examiner to make a report in detail showing us the exact amounts he has paid out of our funds for attorney's fees, office rent, salaries, and other expenses? Before we had a bank commissioner, failures of banks were handled by the courts thru receivers and they were obliged to make an annual report to the creditors. Can't we get such a report from a public official who is handling our money and won't let us know anything about it?

Respectfully, PETER MANTEHES. 2218 First ave. W.