Contemporary articles report a several-day run culminating in the state bank examiner ordering the Northern Bank & Trust Co. to close on Jan. 30, 1917. The run was triggered after the failure of the Broadway State Bank (local bank distress) and exacerbated by poor loans to German/coal interests. The examiner seized the books and the bank did not reopen; later receivers paid dividends (1918 onward), indicating permanent closure and receivership.
Events (3)
1.January 30, 1917Run
Cause
Local Banks
Cause Details
Several-days' run began after the recent failure of the Broadway State Bank (with which Northern was allied); withdrawals steady and clamorous.
Measures
Police kept lines in check; clearing house and outside banks later offered assistance; state examiner closed the bank.
Newspaper Excerpt
Following a run of several days on Northern Bank and Trust company ... the run which crushed the trust company followed the failure of the Broadway State bank
Source
newspapers
2.January 30, 1917Suspension
Cause
Government Action
Cause Details
State bank examiner ordered the bank closed after investigating the run and finding assets insufficient for immediate cash demands (large bad loans tied up).
Newspaper Excerpt
The Northern Bank and Trust Company ... was closed by the state bank examiner this morning.
Source
newspapers
3.March 12, 1918Receivership
Newspaper Excerpt
Local parties ... were agreeably surprised to receive checks from the receivers ... for twenty percent of the amount due them as depositors at the ... institution closed last year; the twenty per cent payment was only the first dividend ... additional reimbursement may be expected (March 12, 1918).
Source
newspapers
Newspaper Articles (24)
1.January 30, 1917The Seward GatewaySeward, AK
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SEATTLE, Tuesday. - Following a run of several days on Northern Bank and Trust company, W. L. ColI er closed its doors this morning by orders of the state bank examiner. The company has deposits of over $1,500,000. Many Alaskans were caught in the failure through their aquaintance with Collier, a former sourdough. The run which crushed the trust company and bank followed the failure of the Broadway State bank, with which it had been allied. Loans which resulted in the crash are said to have been made to the Isiaquah Superior Coal mining company, a wild cat concern promoted by von Alvensaben, a German, whose extensive interests in British Columbia coal holdings were confiscated by the Dominion of aCnada at the beginning of the war. These loans amounted to several hundred thousand dollars. Collier had a rather remarkable career, as he was merely a clerk when he went to Alaska and when he returned he blossomed out into a full fledged banker. The last bank statement issued showed the Northern Bank and Trust to have deposits of $1,679,619.24, with cash and exchange on hand amounting to only $268.704.72. From local sources it has been learned that the bank had a disagreement with other financial institutions in Seattle recently which resulted in a new clearing house being organized from which it was excluded. So far as known no Seward business establishment had any financial connection with this bank, but it is possible that some Alaskans here were depositors as one local man had a deposit in the Broadway bank which closed last week.
2.January 30, 1917The Alaska Daily EmpireJuneau, AK
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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.
3.January 30, 1917Elko IndependentElko, NV
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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.
4.January 30, 1917The Nome Daily NuggetNome, AK
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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.
5.January 30, 1917The Nome Daily NuggetNome, AK
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Pacific News Service. SEATTLE, Jan. 30.-The Northern Pank and Trust Company of this city closed its door3 temporarily today. This action was taken following in structions from a state bank inspector who announced that depostiors would not lose a dollar as the deposit. were well secured. A statement was issued this morning showing the condition of the bank and the reasons for the suspension. The bank's deposits amount to one million and five hundred thousand dollars. Loans have been made well within the legal limit but the bank is behind about four hundred thousand dollars which have been placed chiefly on coal mines and timber holdings of a German syndicate in which the German emperor is heavily interested financially. Owing to the war and the disruption of commerce and financial conditions resulting from it the Cermans have not been able to repay the money loaned them. The bank has foreclosed its mortgages but cannot realize cash on the
6.January 30, 1917The Daily Progressive-MinerKetchikan, AK
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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.
7.January 30, 1917Rogue River CourierGrants Pass, OR
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RUN ON BANK IS CAUSE OF FAILURE Seattle, Jan. 30.-The Northern Bank and Trust company, at Pike street and West Lake 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 its affairs 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 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 has one of the best locations in the city. It is announced another bank already has offered $75,000 for its lease.
8.January 30, 1917The Tacoma TimesTacoma, WA
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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.
9.January 30, 1917Daily Capital JournalSalem, OR
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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'elΕck 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.
10.January 31, 1917The Daily AlaskanSkagway, AK
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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
11.January 31, 1917The Daily AlaskanSkagway, AK
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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.
12.January 31, 1917The Washington HeraldWashington, DC
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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.
13.January 31, 1917The Alaska Daily EmpireJuneau, AK
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SEATTLE, Jan. 31.-Two more banks, following the run which was started yesterday when the Northern Bank and Trust Company's institution was forced to close its doors. failed to open their doors this morning. The two banks suspending this morning were the German-American bank, at the corner of Marion street and Second avenue. in the Marion block, and the Fremont State Bank, at Fremont. Charles E. Remsberg and A. E. Dixon, being the bankers. Every bank in Seattle. except the three National banks, were again experiencing runs today. The runs are most persistent on the savings institutions. At noon today the Clearing House Association gave notice that all solvent banks, whether members of the association or not would be assisted. At 1:30 o'clock this afternoon cash assistance was tendered to the Seattle financial institutions by out. side banks in case any was needed. The Clearing House Association officials announced that three million dollars from various sources have been offered for the relief of the local banks if this amount is needed. Late this afternoon. just before the closing hours of the banks it was stated that there is sufficient reserve in the banks to undoubtedly meet all cash withdrawals.
14.January 31, 1917Elko IndependentElko, NV
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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.
15.January 31, 1917The Tacoma TimesTacoma, WA
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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
Seattle Bank Fails To Open Doors; Run On Others Follows (By Evening Herald Leased Wirel Seattle. Wash.. Jan. 31.-The Ger. man-American Mercantile bank did not optn for business toda: A line of 300 persons gathered at the bank before 10 a. m. At that time notices were posted that the bank was in the hands of the state bank examiner. The German-Ameriean bank is capItalized at $100,000. Several hundred persons assembled in a line in front of the People's Savings bank before its doors opened this morning. and when the institution started the day's business, depositors destring their money were paid as rapidly as possible. The People's Savings is said to be one of the strongest banks in the Pacific northwest nd bankers attributed the run due to the fact that it Is located near the Northern Bank & Trust company which closed yesterday. All other banks paid depositors as they appeared and there were no street lines except at the People's bank. The clearing house issued a statement saying "The present dis. turbance is not a legitimate cause for alarm."
17.January 31, 1917The Seward GatewaySeward, AK
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BANK RUNS PECULIAR There is great mystery about a bank run, and the flock at Seattle yesterday will provide much material for the psychologists. Runs start without rhyme or reason SO far as finance is concerned. The very foundation of a successful banking business makes the banker vulnerable to a run of any length, for to make a success of the business he has to have the money in his care out at work. The banker pays from three to four percent on deposits and loans the money at higher rates. Actual cash to transact business is kept on hand which amounts to from 15 to 50 percent of the liabilities of the bank, depending upon the banker. Of course, some banks keep more and now and then a bank which does a very small busiess will save less. With this situation the banker with 30 percent of his cash on hand would have to close his doors if 40 percent of his depositors wanted their money quick. The bank might be perfectly solvent but the money is out at work and it can't be called in and shelled out over noght, to suit the clamor of skittish depositors. New York has been the scene of some of the most remarkable runs in history, caused by the most trivail OCcurrences. The least possible excitement in a bank in a large city is liable to cause a run. The capture of a pickpocket or sneak thief in a bank entailing a struggle, or a loud argument by some depositor is sufficient. In fact any occurrence from which the rumor might start that "there's a run on that bank" is liable to start a run. To guard against this the banks take every precaution, officers have strict orders to let the suspect leave the bank before arresting him, and the bank officer's principal effort is to prevent excitement of any kind. The closing of the Broadway bank at Seattle caused a rur on the Northern Bank and Trust company, which had known financial relations with the former institution. This is easily explainable. But the run on the People's Savings bank had no cause except fear on the part of the depositors, regardless of fact. Runs were noted on other state banks, but the detailed account will probably show that banks weaker financially than the People's Savings, which is one of the strong banks of Seattie, escaped without the loss of an account. After the excitement is over and the stress of the moment is passed it is not an unusual sight to see those who drew their money out in a hurry, putting it back in the same bank. In fact it has been noted many times that depositors have drawn their money and immediately redeposited it in the same bank, giving as a reason that they "just wanted to see if the cash was there."
18.January 31, 1917The Nome Daily NuggetNome, AK
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NOME, ALASKA, JANUARY 31, 1917. Yesterday in Seattle there was given an excellent example of that unreasoning tear which sometimes controls human beings. In the morning the doors of the Northern Bank and Trust Company were not opened for the transaction of business as usual. In explanation of the closed doors an announcement was made that pending the conversion of perfectly good security into cash the bank was tech. nically insolvent and according to the banking laws of the state of Washington would have to suspend business. The total deposits of the bank were a million and a half dollars and all of this was either in cash or negotiable securities except four hunared thousand dollars which were SPcured by a mortgage on property that at a sale would more than realize the amount advanced. The depositors were assured that they would not lose a cent though it was plain that business houses having a checking account there might be temporarily inconvenienced by having their funds tied up. From the facts as stated in the message of yesterday the manage. ment of the bank could hardly be blamed for making the loan because i: was marie to powerful German interlasts with the kaiser himself as a prominent participator. The Germans are usually the best of financial risks, and the German emperor is known to have several millions invested in gill edged American ventures. The disruption of financial conditions due to the war 13 probably alone to blame for the non-payment of the loan and the necessity for a foreclosure of the mortgage which virtually meant the tying up of four hundred thousand dollars for a year before the bank would be able to give a good title to the property. Now there seems no evidenec of high finance in these facts as related. There was no skyrocketing and nothing else than the loaning of a large sum to parties who within all human probabilities were more likely to repay than almost anybody on earth, except for one thing-the war. These being the plain facts any normal person would have expected nothing in particular to happen. But this was not the case. By a curious lack of logical reasoning a number of people who had money in a sav. ings bank not connected with the Northern rushed to that institution to withdraw their mone. Any one who has ever seen such a stempede does not have to be told what it was like.
19.February 1, 1917The Wrangell SentinelWrangell, AK
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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.
20.February 8, 1917Mexico Weekly LedgerMexico, MO
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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.
21.August 29, 1917Evening JournalWilmington, DE
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FRENZIED FINANCIER HELD AS SUPER SPY Staff Special SEATTLE, Wash., Aug. 29,-Lieutenant Alvo von Alvensleben is a name for German black magic in the Pacific northwest, Held under arrest here on orders from Washington, he will be interned at some interior prison camp. If half the charges now circling his head are true, Lieut, von Alvensleben is one of the most remarkable men yet enmeshed in the drag of the government spy net. Whether or not he is the high secret servant of the Kaiser in war in trigues in western Canada and the United States, his Wallingfordesque career in finance of recent years has left a blazing trail in this northwest country. Here are some of the interesting Von Alvensleben episodes developed from various sources since his arrest: Accused by Canadian officials of plotting before the war to become governor of British Columbia by popu'arizing himself with the voters, thus gaining a vast power to be used secretly in the interests of Germany LIEUTENANT VON ALVENSLEBEN Declared to be the Kaiser's per sonal representative in coal land taining a secret rendezvous near the deals in British Columbia, Bremerton Navy Yards in Puget Manipulated financial transactions Sound, having access to a secret wire. running into millions, less station relaying information to Credited by state bank examiner Germany, with being cause of failure of NorthLieut. von Alvensleben is said to ern Bank and Trust Co., here recent- belong to one of the oldest families ly, having borrowed huge sums on in Germany He admits that he was non-producing coal lands, a former lleutenant in the German Canadian officials declare he owed army but declares his connection with the Dominion Trust Co., of Vancouv- the Kaiser's military machine ceased er, B. C., $1,250,000 at the time that on his resignation before the war. He institution collapsed. His failure to denies any complicity in espionage meet his obligations is given as the operations and says his commercial cause of the company's fall. interests will be ruined by his internSaid to be a member of a German ment. organization in the northwest main- His wife is an English woman.
22.March 12, 1918The Nome Daily NuggetNome, AK
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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
23.November 15, 1922The Seattle StarSeattle, WA
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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.
24.August 25, 1923The Seattle StarSeattle, WA
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Editor The Star:
Sir, I have a faint recollection that many years ago there was some sort of a bankβI think, if my memory serves me right, it was called "The Northern Bank & Trust Co."βsomewhere about the corner of Fourth ave. and Pike st., where some of us, when we were young fellows doing our best to save a little money for our old age, systematically placed it there for safe keeping, and also with an eye to business on a small but strictly honest scale, to have a little interest added. Most of us sorely regret that we were not so wise as the foolish virgins of old, as to hide it under a bushel. If so, we might have had more of it today, for, apart from one or two trifling payments made long ago, the rest of it is seemingly to be very safely kept from us.
It runs in my mind that someone was sent to jail for dishonesty in connection with its management before its doors were closed by state officialdom. But as time goes on, are we to be driven to the conclusion that its management, or mis-
