19463. State Bank (Tenino, WA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
September 21, 1914
Location
Tenino, Washington (46.857, -122.853)

Metadata

Model
gpt-5-mini
Short Digest
a36fa73baba76dfe

Response Measures

None

Description

Tenino State Bank closed its doors and did not resume operations; a receiver was appointed and the bank remained defunct with receivers' actions (assessments, dividends) through 1915. The immediate cause was heavy investment in commercial paper and connected losses tied to the failed Centralia institutions. Key dates: closed 1914-09-21; receiver appointment actions publicized early October 1914; receiver Roy A. Langley disbursed dividend and administered estate in 1915.

Events (4)
1. September 21, 1914 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank had invested heavily in commercial paper and financing mill and logging properties similar to the failed Centralia banks; exposures rendered it unable to open after examiner inspection.
Newspaper Excerpt
The State Bank at Tenino, owned by the same interests as the two institutions which closed here, also failed to open its doors this morning.
Source
newspapers
2. October 2, 1914 Receivership
Newspaper Excerpt
Judge C. E. Claypool ... will be named receiver for the Olympia Bank & Trust Co. of Olympia and the Tenino State bank by Judge W. O. Chapman.
Source
newspapers
3. February 19, 1915 Other
Newspaper Excerpt
Each of the twelve stockholders of the defunct Tenino State bank must pay to the receiver $100 on each share of stock they held, as an assessment to meet the bank's obligations.
Source
newspapers
4. March 19, 1915 Other
Newspaper Excerpt
Roy A. Langley, receiver for the defunct Tenino State bank, was ordered by the local superior court Tuesday to disburse a dividend of 20 per cent, or $15,000, to the 500 depositors of that institution.
Source
newspapers

Newspaper Articles (12)
1. September 21, 1914 Daily Capital Journal Salem, OR
Article from Daily Capital Journal, September 21, 1914

Click image to open full size in new tab

Article Text

CENTRALIA BANKS FAIL FOR $1,250,000 Had Loaned Too Much Money to Themselves --- Tenino Bank, Also Fails Centralia, Wash., Sept. 21.-The United States National Bank with deposits of over $1,000,000 and the Union Loan & Thust Company, with deposits of over $250,000, failed to open their doors today following an inspection of the institutions' books by Bank Examiner Lloyd L. Mulit. The heaviest depositor in the banks was the city of Centralia, which had $90,000 on deposit. The closing of the institutions leaves the municipality with but $10,000 cash on hand from its spring tax receipts. The greatest factor in the closing of the doors of the two banks, according to George Dysart. one of the stockholdtrs, was over-confidence on the part of the bank officials in the handling of commercial paper, on which it was found impossible to realize when a financial stress came. It is said that the trouble is directly due to financing mill and logging properties in which the bank people were interested. United States Attorney Clay Allen and Marshal J. M. Boyles are in the city in connection with the closing of the banks, but their mission has not been announced. The closing caused no little excitement but the directors of both institutions assert they will turn over all of their private property and that depositors will be paid in full. The other two Centralia banks were prepared to withstand runs but none developed. The State Bank at Tenino, owned by the same interests as the two institutions which closed here, also failed to open its doors this morning. The failure of the Tenino bank, which is under the jurisdiction of the state bank examiner and not the federal authorities, was largely due, bank officials stated, to the fact that the bank had invested heavily in commercial paper similar to that held by the two local concerns.

2. October 2, 1914 Washington Standard Olympia, WA
Article from Washington Standard, October 2, 1914

Click image to open full size in new tab

Article Text

ADDITIONAL COUNTY NEWS TENINO. Mr. and Mrs. Paul Marbach, who made their home here for a year, have moved back to Bucoda. Mr. and Mrs. Fred Kuhn, who live two miles north of Tenino, returned home last week after an eventful tour of Europe. They left Tenino last May and during their absence visited Norway, Sweden, Denmark and practically every country involved in the present war. After spending several weeks in Switzerland they were ready to return to Denmark, but were ignorant of warfare until told by the ticket agent at Zurich that it was doubtful if they could get through. In two days the Swiss were mobilizing and the payment of travelers' checks was stopped. The Kuhns were compelled to remain there nearly a month, finally leaving on a special train. They saw many soldiers and were particularly impressed with the lack of equipment of the French. They stayed in Paris three days and talked with many wounded soldiers brought in from the scene of conflict in Belgium. They sailed from Havre on August 31 on the Rochambeau. The boat carried 1500 passengers with accommodations for only 1000. Last Saturday night a reception was tendered in Tenino to the teachers of the town and immediate vicinity. Governor Ernest Lister was the principal speaker of the evening. An excellent musical program was carried out, and the event was a success in every way. It is reported in Tenino that trains will begin operating next week over the new Tenino-Point Defiance cutoff of the Northern Pacific. The new depot in Tenino has been completed, while a force of men are now engaged in grading the approaches to it. State Bank Examiner Hanson has completed checking over the affairs of the Tenino State bank, which closed its doors this week, but as yet he has made no statement, although it is believed that the affairs are in good shape! It is probable, however, that in case steps are not taken for an immediate reorganization, a receiver will be asked for. Being the only bank in Tenino, practically every business man in the town was caught by the closing. While adjusting some heavy belting Tuesday at the plant of the McIntosh Shingle company, Frank Humes, a filer, fell and sustained painful, though not serious, injuries. He was removed to a Centralia hospital, where an examination revealed two broken ribs and numerous bad bruises. The McIntosh Shingle company's mill closed Wednesday for the purpose of overhauling the saws and other machinery. The closing is by no means permanent, as shingle contracts are plentiful enough to keep things on the move for some time to come. Mrs. Nettie Davis has rented her ranch along the Skookumchuck to L. W. Haney and has moved into town. The Johnson Creek Lumber company has resumed operations on a small scale. Turvey Brothers are logging cedar for the shingle mill which has started with a full crew.

3. October 2, 1914 Washington Standard Olympia, WA
Article from Washington Standard, October 2, 1914

Click image to open full size in new tab

Article Text

LOCAL BANK TANGLE BEING WORKED OUT .V. DEAN HAYS ARRESTED AND RELEASED ON $10,000 BOND -RECEIVER CONSIDERED With a hearing in the local court late Thursday afternoon before Superior Judge W. O. Chapman of the Pierce county superior court, who is handling this feature of the cases, on an application for the appointment of a receiver for the Tenino State bank and further consideration then on the application made Tuesday for a receiver for the Olympia Bank & Trust company, considerable progress was made this week in straightening out the tangled affairs of these two Thurston county institutions. When the application for a receiver of the local institution was heard Tuesday, the directors and stockholders petitioned for the appointment of C. Will Shaffer, secretary of the bank, but this was objected to by the state. It was suggested, then, that Frank P. McKinney, assistant cashier of the Olympia National bank, be appointed, which 'was favorable to both sides. W. Dean Hays, the organizer and cashier of the Olympia Bank & Trust company, who was arrested at his home Monday evening by Sheriff Fred W. McCorkle on the charge of having accepted a deposit of $227.51 from the Olympia Hardware company when he knew the bank was insolvent, was placed under a permanent bond of $10,000 when he appeared before Superior Judge Claypool Tuesday afternoon. This bond was furnished by F. G. Blakeslee of the Olympia Hardware company and the following residents of Tenino: Mayor. H. S. Barclay, William McArthur, E. T. Sullivan, C. W. Yantis, William Godsell and A. A. Battiska. When Mr. Hays was arrested Monday evening temporary bond of $10,000 was furnished by F. G. Blakeslee, C. Will Shaffer, E. B. Taylor, John H. Blass, E. L. Van Epps, E. W. Kearns and Louis Fortier. At the same time Attorneys P. M. Troy and Thomas M. Vance were engaged to defend him. The warrant was issued on an information filed by Prosecuting Attorney Thomas L. O'Leary after a conference with W. E. Hanson and the attorney general's office, and Assistant Attorney General John M. Wilson has been assigned to join O'Leary in handling the case. It is

4. October 2, 1914 The Seattle Star Seattle, WA
Article from The Seattle Star, October 2, 1914

Click image to open full size in new tab

Article Text

QUITS THE BENCH TO BE A RECEIVER OLYMPIA, Oct. 2.-Announcement was made here last night. Judge C. E. Claypool of the Thurston county superior court, will tender his resignation to Governor Lister and will be named receiver for the Olympia Bank & Trust Co. of Olympia and the Tenino State bank by Judge W. O. Chapman.

5. December 4, 1914 Washington Standard Olympia, WA
Article from Washington Standard, December 4, 1914

Click image to open full size in new tab

Article Text

the bank of which he has had charge as cashier for the past five years. He had been dickering for the purchase of the Tenino State bank before that institution closed its doors recently. Committees have been appointed and are already busy with the arrangements for the annual Christmas dance of the Tenino Odd Fellows. A supper will be served in connection with the event this year. Charles Norman, a resident of Tenino, is recovering from a severed artery, the injury being sustained when his axe slipped while running lines for the Washington Union Coal company, near Tono. Dr. Doolittle of Tono dressed the wound, after which Norman was removed to his home. A circus recently given by the pupils of the Tenino high school netted $30.41, which will be used to defray the expenses of a high school paper, "Kynedisbok," the first issue of which will appear about Christmas. It is expected that the paper will later support itself. The Tenino News is in receipt of a clipping from the Tenino Enterprise dated June 2, 1893, the clipping being forwarded by Nellie M. Alldredge, department secretary of the Woman's Relief corps of Oregon City, who unearthed it while looking through an old trunk. Joe Cannon, one of Tenino's pioneers, recalls the paper as having been published by one Clarence Berry and a partner whose name he cannot now recall. a # FOR SALE-One 2-year-old colt, weight 1100 lbs.; six Jersey heifers, all ages. E. T. Palmer, Pleasant 10-5tf Glade, Phone 18F14.

6. February 19, 1915 Washington Standard Olympia, WA
Article from Washington Standard, February 19, 1915

Click image to open full size in new tab

Article Text

mother, is visiting him. Mr. and Mrs. J. V. McAfferty visited friends and relatives Sunday. Mr. and Mrs. Fay entertained Miss Standke at dinner Tuesday evening. Under an order issued late last week by Superior Judge Mitchell, each of the twelve stockholders of the defunct Tenino State bank must pay to the receiver $100 on each share of stock they held, as an assessment to meet the bank's obligations. Isaac Blumauer, the heaviest stockholder, will have to pay $5,100; W. Dean Hays, formerly cashier, $1,100, and the other stockholders lesser amounts. Mrs. Frank Morris went to Sunnyside Saturday after spending four weeks here visiting her parents, Mr. and Mrs. Walter Matheson.

7. February 26, 1915 Washington Standard Olympia, WA
Article from Washington Standard, February 26, 1915

Click image to open full size in new tab

Article Text

BANK TANGLE IN COURT Affairs of Local and Centralia Institutions to Be Aired. Bill of comptaint covering three different actions was filed in the federal court at Tacoma Saturday morning by Attorney P. M. Troy of this city on behalf of Receiver F. H. McKinney of the Olympia Bank & Trust company against Receiver C. A. Snowden of the United States National Bank of Centralia, in which Mr. McKinney wants claims against Mr. Snowden amounting to $56,050 settled. In the complaint Mr. McKinney alleges that he has permission from the superior court of Thurston county to bring the action. He declares that W. Dean Hays, cashier of the Olympia bank, acting with Charles Gilchrist, formerly vice president of the Centralia bank, fraudulently misappropriated $36,550 of the funds of the Olympia bank to pay private indebtedness of Mr. Hays to the Centralia bank. This was done without the knowledge of the stockholders, he says. Mr. McKinney has demanded an accounting from Mr. Snowden, but has been refused, he says. The second cause of action alleges that the Olympia bank forwarded $10,000 to the State Bank of Tenino, also defunct, at the request of the United States Bank of Centralia and that credit was not given the Olympia institution. Other wrongful transactions involving smaller sums are alleged. Hays recently was acquitted after trial for alleged embezzlement. Gilchrist is serving a term in the federal penitentiary on McNeil island for violation of the federal banking laws. Receiver McKinney says that if he is able to establish credit for the funds involved in the suit the affairs of the local bank will be straightened out in fairly good shape and without assessing stockholders.

8. March 19, 1915 Washington Standard Olympia, WA
Article from Washington Standard, March 19, 1915

Click image to open full size in new tab

Article Text

SOME NEWS NOTES OF THE CITY The Elks are planning a big entertainment for the ladies Friday night, the particular guests of honor being those who helped to make the recent fiesta such a success. After pleading guilty to having robbed the Martin hardware store. Ben Loraine was sentenced to a term of not less than one year in the Walla Walla petitentiary and was taken to the institution last Saturday. The city's suit to condemn the Olympia Water Works has again been postponed. this time from March 23 to March 31. It will be heard by Judge Clifford of the Pierce county superior court, in Tacoma. Roy A. Langley, receiver for the defunct Tenino State bank, was ordered by the local superior court Tuesday to disburse a dividend of 20 per cent, or $15,000, to the 500 depositors of that institution. E. M. McClintic returned to Olympia this week, after a short visit with his sister, Mrs. C. S. Crowl of Fort Bliss, Texas, and after spending a few days at the San Francisco fair. Twenty-five members of the Christian Endeavor society of the First Presbyterian church composed the cast of a playlet, "Aunt Jane's Album," taken from Eliza Calvert Hall's book, "Aunt Jane of Kentucky," which was presented in the church parlors Wednesday evening of this week. State Auditor C. W. Clausen and I. A. Pedersen of the state bureau of inspection went to San Francisco and San Diego this week to investigate the charges made by Gwin Hicks, resident commissioner at the San Diego fair, against the Washington exposition commission, after he resigned. Members of the local G. A. R. post will entertain their department commander, H. R. Gale, at a dinner at the local hall Saturday noon, all old soldiers of the city and county being invited to the function. Commander Gale visits all the posts of the state once a year, and will make an address at this meeting. Arthur T. Marion of the state land office will manage the local baseball team this year and W. S. Grover of Sherlock, who has seen experience in an Illinois league and the Texas league, will be umpire. Local people Interested in the Senators are planning a big dance to be held soon, the proceeds of which will be used to purchase new suits for the team. Children and grandchildren of Mr. and Mrs. Orville George completely surprised them Sunday by arranging a bountiful dinner for them on the occasion of their golden wedding anniversary, at the home of one of their daughters, Mrs. H. L. Parr. All but one of the eight children were present, the absent one being L. E. George of Eugene, Ore. The others are Mrs. Parr, Mrs. Anna Martin, E. J. George, M. E. George, E. D. George and N. E. George. The grandchildren are Mrs. J. C. Sams, Dulcie, Elden and Marion Martin, Marion, Lewis and Austin George and William Parr. An understanding as to the division of the expense of erecting a new steel bridge over the Des Chutes river at Tumwater is reported to have been reached by the county commissioners and the Tumwater officials, whereby half of the cost of the new structure is to be paid out of the county's general road and bridge fund, instead of calling a special election for the issuance of bonds. The new bridge, to be built of steel on concrete piers, will cost approximately $10,000, it is estimated. This, with several other bridge contracts throughout the county, for which the county engineer is now preparing plans and specifications, will probably be disposed of by the commissioners within the next two or three weeks. Rev. Hugh Elmer Brown. pastor of the Pilgrim Congregational church of Seattle, who is assisting in special Lenten services at the local church this week, is to be the guest of honor at a "Dutch lunch" the University club plans to hold Friday evening of this week. Mrs. Thomas Russell, 67 years old,

9. July 2, 1915 Washington Standard Olympia, WA
Article from Washington Standard, July 2, 1915

Click image to open full size in new tab

Article Text

SOME NEWS NOTES OF THE CITY Frank M. Kenney, cashier of the Olympia National bank, was in Salem, Ore., this week on business Mrs. C. W. Dubois of Centralia spent several days in Olympia this week visiting her son, Otto Weisinger, and wife. Mrs. O. A. Leslie and daughter, Miss Olive Leslie, left Thursday on a trip to southern California to visit Mrs. Leslie's son Harry. After visiting her brother, County Superintendent L. A. Kibbe, for 10 days, Miss Alice L. Kibbe has gone to Puyallup to attend summer school. Ernest L. Wolf has as his guest his father, H. B. Wolf, wholesale and retail dealer of Boulder, Colo., who expects to be here two or three weeks. Rev. and Mrs. C. S. Morrison and little son went to Seattle this week for a month's visit. They will live at the Trinity church rectory, Rev. W. H. Bliss being away on his vacation. I. V. Rathbun and Mrs. Hettle N. Morgan of Yelm obtained a marriage license at the county auditor's office Wednesday and were later married by Justice Crosby. Mrs. Thomas M. Reed and daughter Constance are now living in the Diven home, having come to Olympia Wednesday after spending the winter in California. .... After living in Olympia for nearly a year, Mr. and Mrs. Fred Grass this week returned to their ranch in the Des Chutes valley near Yelm and will teach next year in the John Longmire school. Mr. Grass was employed in the postoffice while here and was succeeded there by Harold Van Eaton. County Treasurer Fred W. Stocking expects to leave in his auto next Monday on a three weeks' tour of California, accompanied by Mrs. Stocking, Miss Helen Stocking and Miss Dora Petersen. An order authorising Roy A. Langlay as receiver of the State Bank of Tenino to take as his fees 8 per cent on all collections up to $40,000, 6 per cent on collections between $40,000 and $50,000, and 4 per cent on all above $50,000, was issued by Superier Judge Mitchell Wednesday. Mr. and Mrs. Stanton Warburton and son of Tacoma and Judge A. R. Melynoux and son Arthur of Cherokee, Iowa, stopped over in Olympia Tuesday en route to Tacoma from an auto trip to Lake Cushman. Glen Class and Miss Zoya Govat, daughter of Marshal Govat of Tumwater, were married early Wednesday morning by Rev. E. Hopkins, and left immediately with a horse and buggy for Elma to visit relatives. Miss Myrtle Huggett, whose family recently moved to this city, was elected a member of the teaching force of the Olympia schools this week and will probably be assigned to the Westside school. With all of the outside work on the building practically finished, contractors on the $40,000 new home of the Olympia National bank, at Fifth and Main streets, started the interior plastering this week and expect to Saish their work by the middle of next month. J. B. Ransom of Shelton, one of the four Overland Westerners who just finished a two years' trip to the capital of every state, stopped over in Olympia the latter part of last week, on route home. Mrs. Margaret Shaser of Wenatchee, one of Washington's piomears, Is visiting her son, W. 8. Shaser of this city, coming here from Gate and Oakville, where she had been visiting her grandchildren. By defeating Dr. H. W. Partlow last Sunday, Secretary H. L. Whiting

10. July 27, 1915 The Tacoma Times Tacoma, WA
Article from The Tacoma Times, July 27, 1915

Click image to open full size in new tab

Article Text

Very homes of Danbury batters will be taken from them by foreclosure of mortgage, as result of supreme court decision that their boycott of 20 years ago was illegal Foreclosers are D. E. Loewe & Co. Prof. Flynn's health bread. Duenwald's, 313 11th. "Advertisement." Miss Bertha Huestis, Seattle, injured in auto accident on Elbe mountain road, is better. Her sister, Marguerite, and John Rosene, merely bruised. STANLEY BELL PRINTING CO. "adv." R. A. Langley, receiver of Tenino State bank, made deputy state bank examiner. Another Canadian regiment, Royal Canadians, ordered to front. All kinds bedding plants at Hinz Green House, So. 7th and K. "Advertisement." When burglar entered the home of C. D. Main, 6838 South Park av., a girl screamed and he ran. Presiding officer at democratic luncheon twits Bryan about his resignation, and latter retorts that he has resigned once and died politically many times, according to his enemies. How'd you like to have a warcontract? W. T. Moore, Dallas, was working on one, and someone blew up his house with a bomb placed under his bed. Moore is badly hurt. Col. T. R. greeted by thousands at San Diego exposition. C. A. Reynolds of state public service commission, and Secretary J. H. Brown plan to walk length of McClellan Pass highway for inspection. Public service commission orders elimination of 12 grade crossings near Raymond on Puget Sound-Willapa Harbor railway. English will not declare cotton contraband, despite demands of many war leaders who say that without cotton to make high explosives Germany would speedily succumb. H. D. Alford, store-keeper, turns over bad $5 check and 14year-old boy who made it to police. Name is withheld. Big strike of New York longshoremen settled. George Brown, fisherman who caught a shark a week ago, catches a devilfish off Oriental dock. Sells it for food. Japanese consider it a delicacy. William Olander, secretary of Great Lakes Seamen's union, says many other ships are as unsafe as the Eastland, and points out that in 10 years 31 vessels have been sunk on the Great Lakes, after being passed by inspectors.

11. January 7, 1916 Washington Standard Olympia, WA
Article from Washington Standard, January 7, 1916

Click image to open full size in new tab

Article Text

RECEIVER OF LOCAL BANK MAY APPEAL OBJECTS TO COURT DECISION DENYING RECOVERY ON HAYS' NOTE FOR $86,550. Appeal probably will be taken by Frank P. McKinney, assistant cashier of the Olympia National bank and receiver of the defunct Olympia Bank & Trust company, from the decision of the United States district court in Tacoma the latter part of last week by which the court refused to give the receiver of the local institution credit for the $36,550 note deposited in the United States National bank of Centralia by W. Dean Hays, organizer of the Olympia Bank & Trust company. The failure of the Centralia bank caused the failure of the local institution less than a month after it opened for business. Receiver McKinney, through his attorney, P. M. Troy of Troy & Sturdevant, sued A. R. Titlow, receiver of the United States National, to recover moneys which Titlow had refused to allow. These consisted of three items, $10,000 which McKinney claimed was remitted by the Olympia bank, upon the order of the Centralia bank, to the Tenino State bank, which also failed at the same time; $9,500 for money the Centralia bank claimed to have advanced on notes known as the Blumauer notes, and $36,550 for money that was charged against the Olympia bank by the United States National for the alleged payment of the Hays' notes, a transaction which Receiver McKinney claimed was equivalent to the payment of Hays' personal notes by the bank. Result of Suit. As the result of the suit the Olympia bank gained the second item, $9,500, and was authorized by the court to recover the first, $10,000, from the Tenino bank, which was a party to the suit, but was defeated as to the third item, $36,550. In addition the court found that the Centralia bank owed the local one approximately $26,000 instead of $16,000 as it had contended, and also gave the local bank the notes of its stockholders other than Hays, amounting to $11,450, which had been deposited with the United States National when the Olympia Bank & Trust company was organized. These are thought to be largely good and, with the sums allowed by the court, will make a substantial recovery by Receiver McKinney. If appeal from the decision is not taken, Receiver McKinney expects to repay 50 per cent to depositors of the Olympia Bank & Trust company, after levying an assessment on the stockholders, and will pay more, if the Centralia and Tenino banks pay Continued on Page Five.

12. March 3, 1916 Washington Standard Olympia, WA
Article from Washington Standard, March 3, 1916

Click image to open full size in new tab

Article Text

Suits were filed in Justice Crosby's court Wednesday by Roy A. Langley, receiver of the State Bank of Tenino, to collect on six notes due that institution, upon which no payments have been made.