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A TACOMA BANK FAILS The Commercial Asks Appointment of a Receiver. IT WILL GO OUT OF BUSINESS. The Crash Precipitated by a Demand for the City Money. Since the Bank of Tacoma Failed There Had Been Steady Withdrawals-The Columbia National and GermanAmerican Deny That the City Has Money on Deposit and Refuse to Pay Checks.
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City Asks for a Receiver for the German-American. RESULT OF WARRANT DISPUTE. The Bank Claims That the City Has Overdrawn Its Account. Columbia National Stockholders to Be Assessed Again-All the County Money Is in the Courthouse Vaults -The First National Bank of Puyallup to Liquidate. Tacoma, Oct. 17.-Special.-City Attorney Wickersham and City Treasurer MeCauley today applied to the superior court for the appointment of a receiver of the German-American Safe Deposit and Savings bank. The application was made before Judge Pritchard, on the ground that the institution is insolvent, its refusa! to honor the city treasurer's check for $58.369, the amount claimed to be on deposit, being cited as evidence. Immediately after the case came up the city attorney moved that the case be transferred to Judge Parker's court, it being shown that Judge Pritchard is a stockholder in the Columbia National bank. The court said he was not interested in the savings bank and saw no reason why he should not try the case. After consulting with the attorneys and Judge Parker, Judge Fritchard granted the motion to transfer the case without prejudice, the bank taking an exception. When the matter came before Judge Parker, the court postponed the hearing till tomorrow, saying tnat there was no showing of an emergency and that a full hearing should be had when an appointment of a receiver for a bank is asked. This action on the city's part is the result of a suit brought on Tuesday by the German-American bank, whereby it seeks to settle its account with the city. The bank alleges that ex-City Treasurer Boggs deposited in the bank $80,369 of city warrants between April, 1892. and April, 1894, the city receiving credit for so much cash. Since taking office in April, 1894, Treasurer McCauley has drawn out $22.000 in cash, leaving the balance $58,369. The city has found that under recent decisions the warrants thus placed in the bank are not strictly legal, being issued in excess of the constitutional limit of indebtedness, though they will be ultimately validated. The bank alleges that since the city claims the warrants to be illegal it should not ask the bank to pay the credit so secured in cash, and asks the court to allow the warrants to be set off against the city's credit. If this contention is allowed, the city will owe the bank the $22,000 already drawn out in cash, and it asks for such a judgment. These allegations were again set up today in answer to the city's request for a receiver. The bank denies the allegation of insolvency. Receiver Nolan of the Commercial bank. today asked for an order authorizing him to return to depositors about $1,200 which was deposited Tuesday, the last day the bank remained open. which deposits were kept separate from the other assets. The failure of the Commercial bank and application for a receiver for the German. American bank in nowise affected the other banks of the city. The officers of the German-American bank say they feel confident of winning their suit and continuing in business. The Columbia National bank is preparing to make an assessment on its stockholders, who have already sent over $45.000 here to meet business demands since the council began its agitation regarding city deposits. The assessment will not be completed until certain papers are signed by Controller James H. Eckles, now en route to Washington City from Europe. Every dollar of county money Fas been withdrawn from the Tacoma banks, and is in the county treasurer's vaults.
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RECEIVER ASKED. Tacoma Has a Fight on With One of the Banks. Tacoma, Oct. 17.-The city today applied to have a receiver appointed for the German-Almertcan Safe Deposit and Savings Bank, alleging that the city treasurer yesterday drew a check on the bank for $58,369, the amount of the city deposit, and thlat the bank refused to pay the same or any part 'thereof. The allegation is also made that the bank is insolivent. On motion of the bank Judge Parker continued the hearing on the application until tomorrow morning. This action on the city's part is the revoit of a suit brought Tuesday by the German-Amierican Blank whereby it seeks to settle its acount with the city. The bank alleges that ex-City Treasurer Boggs deposited in 'the bank $30,369 of city warrants, the city receiving credit for so much-bash. Since taking office in April, 1894, Treasurer McCauley has drawn out $22,000 in cash, Deaving a balance of $58,369. The city Ihlate found that under recent decisions warrant's thus placed in a bank are not effrictly Degal, being issued in excess of the constitutional limit of indebteldness, though they will be ultimately validated. The bank alleges that since the city
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THE GERMAN-AMERICAN BANK. Decision in the Receivership Sult to Be Entered Today. Tacoma, Oct. 18.-Special.-Judge Parker today heard the application for the appointment of a receiver for the GermanAmerican Safe Deposit and Savings Bank. No evidence was introduced except. the affidavits of City Treasurer McCauley and the members of the finance committee. The treasurer's affidavit recites the refusal of the bank to honor the city check for $58,000. The bank claimed that no cash had been deposited by ex-City Treasurer Boggs. In the arguments. which consumed the entire day. the bank's attorney cited numerous authorities to sustain their posttion that it was not necessary for them to produce the Boggs' warrants. The court intimated that that was about the only point to be considered. ^ decision will be rendered tomorrow at 9 o'clock.
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LATE NEWS BY WIRE. Items of General Interest From All Ove the Universe Detroit, Oct. 19.-Major Pingree was renominated for the fourth term by acelamation by the Republicans at their city convention this afternoon. Berlin, Wis, Oct. 19.-Captain David Evans, of the United States revenue marine service, died today of old age. He was relieved a few months ago. New Orleans, Oct. 19.-Last night fire destroyed the National Rye mills and four adjacent buildings on Elysian Field street. The less is estimated at $200,000. It was fully insured. The loss includes $40,000 worth of rye. Bucyrus, O., Oct. 19.-The Columbus, Sandusky and Hocking railroad was sold today to W. B. Hatch and G. W. Sinks, representing the bondholders, for $1,500,500, the sale of a month ago for $4,000,000 upon an irresponsible bid having been set aside Tacoma, Wash., Oct. 19-A receiver was appointed today for the German-American bank. The bank declined to pay the city $68,000, the amount of Its deposits, claiming that warrants which were Invalid, and not cash, had been deposited with the bank. Cambridge, Mass., Oct. 19.-Considerable excitement exists at Harvard over the diecovery of an act of vandalism. some one having stolen the Louisburg cross from over the entrance to the library in Gove Hill. The CTOSS was a highly valued reMc, captured by Massachusetts soldiers at the stege of Louisburg in 1746. Hancock, Mich., Oct. 19-The bodies of Chris Veramer and wife, aged people, were found in the cellar of their house at West Hancock this morning, with their throats cut from ear to ear. It is quite certain that the double murder was committed for the purpose of robbery. as the old couple were commonly believed to have kept large sums of money secreted about the house. There is no clue. New York, Oct. 19.-John DeLahanty was today appointed by Judge Beach of the supreme court, receiver for the Mereury Publishing company. The application was made by Albert L Reynolds, counsel for the judgment creditors for 1999. A number of suite are pending against the Mercury company. The directors have, counsel states, admitted that the company is insolvent and in debt on contract debts to the amount of over III,000. Greenville, 0., Oct. 19.-Representative U. W. Hoeffer, a prominent minister. today acknowledged writing a letter solicittng a bribe of $1,500 for his vote for Minator. Hoeffer has been prominently comnected In the ministry of the Christian eburch for n years, and was & leading member of the last legislature. On seeing a facsimile copy of his letter to the Democratic in the papers today, be confessed, and immediately sent the Republican county committee a letter of withdrawel. St. Louis, Oct. 19-The jury in the trial of Maud Lewis for the murder of State Senator Peter Morrissey, in her house of III repute, last May, returned a verdict this morning of murder in the second degree and assessed her punishment at fifteen years In the penitentiary.
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M'CAULEY JUMPED ON. Council Blames Him for Tacoma's Loss of Funds. HIS BOND DECLARED NOT GOOD. He Shows That the Mischief Was Done by Boggs-Receiver Appointed for German-American Bank. Tacoma, Oct. 19.-Special.-The finance committee of the city council, which has apparently gone gunning for City Treasurer McCauley, presented a report at today's session of the council which brought out a full and at times bitter discussion of city finances. The report severely arraigned Mr. McCauley's administration, and laid particular stress on the condition of the deposits of city funds in banks. Mr. McCauley, the committee held, acted with bad judgment in making deposits in some of the banks. The committee reported in favor of making the city treasurer pay into the treasury $2,600, which the committee claims is a shortage. It was shown that $1,000 was deposited in the State Savings bank a few days before It failed, by mistake of
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THE GERMAN-AMERICAN BANK. Receiver Appointed-It Refused to Produce Warrants or Cash. Tacoma. Oct. 19.-Special.-Judge Parker today rendered a decision in the sult of the city against the German American Savings bank. The city asked for the appointment of a receiver, on the ground that the bank had refused to honor the treasurer's check. The court held that the bank would have to do one of three things, vis: pay the treasurer's check, tender back the warrants or show the court that the warrants are not in existence. The bank's attorneys making no such showing. Judge Parker appointed 1. R. Balkwill receiver, fixing his bonds at $25,000. The stay bond was fixed at $63.000, which was furnished by the bank during the day. The case will be appealed to the supreme court. The publishers of the New York Banker and Reporter have begun suit against the Columbia National bank for $200, claimed to be due for an advertisement.
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The German-American Insists Upon Winding Up Its Own Business. TACOMA, WASH., Oct. 19.-S. R. Balkwill was appointed receiver for the German-American Safe Deposit Savings Bank this afternoon on the application of the city, made several days ago. The bond was fixed at $25,000. Before he had furnished it the bank gave notice of an appeal. The court fixed the supersedeas bond at $60,000. The bank promptly furnished a bond in $70,000 and announced it would wind up its own business. The city excepted to the bond and is seeking to-night to secure an order of the court to place the receiver in possession.
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Of the German-American Savings Bank, Tacoma. THE CASH AND BOOKS GONE All Money and Valuable Papers Removed to Columbia National. President Allen Adjudged in Contempt of Court for Secreting the Bank of Tacoma's Books - City of Tacoma Sues Nelson Bennett for Money He Borrowed From Boggs. Tacoma, Oct. 22.-Special.-Receiver S. and secured Safe R. Balkwill, Deposit of the Savings German-American Bank, partial possession of his trust this morning. and the bank's doors were closed. The case came up before Judge E. N. Parker at 10 o'clock this morning, the hour set for the hearing of the city's exceptions to the stay bond of $60,000, put up by the bank. At that hour Mr. Balkwill, his attorney, Frederick A. Brown, and Assistant City Attorney Gibbs, were present. None of the bank's bondsmen were in court to justify under oath and the court forthwith declared it void. The attorney for the bank presented a new bond with three additional sureties, but the court peremptorily rejected this bond, and ordered the receiver to take possession of the bank. When the receiver, accompanied by his attorney, the assistant city attorney and Chief of Police Smith, arrived at the bank they were met by Attorney Hammond, of the bank, and Secretary Weisbach. Possession was refused, but the receiver entered the wicket gate near the cashier's desk and formally announced that he was in charge. The officials of the bank thereupon withdrew. taking with them the cash, books and letter books of the bank. These were deposited in the vaults of the Columbia National, which occupies the next room to the savings bank. Receiver Balkwill this afternoon reported to the court that he had secured $1.10 and no more of the bank's assets, and none of the securities or books. He applied for an order to the Columbia National for them to turn over the cash and books. Thus the matter stands. The bank has filed an objection to the order, rejecting the stay bond and that ordering the recelver to take possession. Its attorneys claim that under the statute they should have been allowed not less than three days in which to have their sureties justify. They claim further that only sixtysix hours had elapsed since the city's exception to the bond was filed. The attorneys also set up that under the statute, if the bond is rejected. they have the rigt to file another bond, which must be proceeded against in the same manner as the first. On this ground the bank's attorneys have advised its officers to resist the receiver. This afternoon additional counsel in the firm of Crowley, Sullivan & Grosscup, was retained, and certified copies in the record of the case were obtained from the county clerk. Tomorrow the attorneys will apply to the supreme court for a writ of prohibition, restraining the receiver from interfering with the business of the bank until the appeal is decided.
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A TACOMA BANKER JAILED. President Allen Must Produce in Court the Books of His Defunct Institution. TACOMA, WASH., Oct. 22.-W. B. Allen, president of the defunct Bank of Tacoma, which caused a loss to the city of $228,000, was ordered into confinement in the county jail this afternoon until the bank books which so mysteriously disappeared are forthcoming. Frank Carpenter, the bookkeeper, and E. S. Alexander, the receiver, were released, but are still under bonds. Another case of contempt will be heard in the morning, when the officers of the German-American Bank will be called to testify as to where the books that disappeared from that institution the day before Receiver Balkwell took charge are now. All Balkwell found was $1 10 in a drawer; the books, securities, etc., were all gone. The feeling is very bitter against the bankers and the city and county officials who are said to have aided them.
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GERMAN-AMERICAN APPEALS. The Bank Receivership Case Taken to the State Supreme Court. Tacoma. Oct. 23.-The German-American bank today secured from the supreme court an alternative writ of prohibition "Irecting Judge Parker and the Tacoma city officials to appear at Olympia Friday and show cause why the receiver should not be dispossessed of the bank's property. The bank went to the supreme court in order to avoid compliance with Judge Parker's order requiring its officers and the Columbia National bank to forthwith surrender to the receiver the books, cash and other assets of the German-American bank in their possession. Contempt proceedings against the bank officers for non-compliance with the order were instituted today. Papers in the contempt case have not been served yet, as the deputy sheriffs have been unable to get service on the officers. The Columbia National and German-American are both making a determined fight to keep off the receiver. The Columbia National has filed a motion to vacate the order compelling them to give up the books, cash and securities of the savings bank now in their vaults. They set up that they have claim and property interest in the securities, which have been delivered to them in trust and for their security. The case is analogous to the famous Ball case, decided four years ago in the supreme court. In that case Harry Ball was president of the National Bank of the Republic, of Taooma, and the Orting National bank. The latter failed, and its receiver tried to compel Ball to give up securities which he held for debt.
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THE TACOMA BANK WRECKS. may of German-American Receiver to Columbia National Receiver. Tecoma, Jan. 9.-Special.-Recelver S. R. Balkwill, of the German-American Safe Deposit and Savings bank, today filed his to the answer of Receiver Clary, of min Columbia National bank, in the suit cursties named m x the institution. deposited possession in of the The $12,000 vaults document worth of the of con- last semina sensational allegations of fraudulent masters of assets and fictitious entries # the books of the banks by W. G. Peters, cashier of the Columbia bank. Beveral weeks ago Receiver Balkwill brought an action against Examiner Daty. who is in charge of the Columbia National as receiver. The suit was to re- possession of thirteen notes, aggrepize $5,500, and several real estate mortpum executed by the late J. S. Howell, unconting to $6,500. Beside these securiDel Receiver Balkwill wanted to get hold d.mveral city and school warrants and - $100 in cash which was left in the an strong box and placed for safe- along with the collateral menthand in the Columbia's vaults when the att asked Judge Parker to appoint a reodver for the savings bank. Receiver Cary refused to deliver the securities, of with & considerable portion are valuable, Mrs. the reason that the German-American and the Columbia bank $14,000 in the form É an overdraft. But this answer did not pagger Mr. Balkwill, who had thoroughly imiliarized himself with the methods of keping accounts and "banking" pursued I the two banks, of which Cashier Peters m the presiding gentus. In his reply tow Mr. Balkwill alleges that Maj. Oliver w president of the two banks and W. G. Peters the absolute and sole manager of Wh; that the German-American deposM all Its cash and all capital received a stock subscriptions with the Columbia National, and that on May 31, 1893, It had will the latter on deposit and duly credad $64,530.06; that on that date Peters by fraudulent and fictitious entry gave the Columbia National a credit for $35,000 on to account. which credit was wholly without consideration. On December 22, X he made out a check from the German-American to the Columbia National for $7,801, which was also wholly fletitious and fraudulent, and the same charge is made concerning two checks drawn in the same way on May 22, 1894, and July 25, 260, for $1,000 and $12,500 respectively. It , also charged that on January 29, 1894, x caused a fictitious and fraudulent entry " be made on the German-American's books by which the Columbia National w without consideration credited and de Grman-American charged with $17,300 this account, and that between Septemled, 1892, and April, 1895, the GermanAmerican paid out at the request of the Clumbia $30,614 for interest and taxes, at that the Columbia bank is rightfully Indebted to the German-American on acsumt of these transactions in the sum of Receiver Balkwill therefore a for a judgment for $10,000 or the reth of the notes, and $5,200 damages. De trial of the cause is awaited with interest, as much of the subterranean workings of the two banks will be brought bilght.