22122. Bank of Ballard (Ballard, WA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
January 30, 1903
Location
Ballard, Washington (47.676, -122.387)

Metadata

Model
gpt-5-mini
Short Digest
a46075b1

Response Measures

Accommodated withdrawals, Capital injected, Full suspension

Other: Trustees attempted to be installed by depositors; criminal prosecutions pursued; receiver later retained and wound up assets.

Description

A run on the Bank of Ballard occurred around Jan 30-31, 1903; the bank failed to open and was closed/placed in receivership (E.L. Blaine appointed) on Feb 1, 1903. The institution remained defunct and wound up in 1903–1904 with dividends paid and the receiver discharged. Cause is recorded as bank-specific adverse information (dishonored drafts, missing funds, insolvency), though rumors of insolvency precipitated the run.

Events (5)
1. January 30, 1903 Run
Cause
Bank Specific Adverse Info
Cause Details
Rumors of insolvency prompted depositors to present checks; subsequent investigation revealed shortages, dishonored drafts, missing money and that the bank had been insolvent for months.
Measures
Cash subscriptions aggregating $20,000 were pledged by citizens to enable reopening; depositors pledged support and trustees were proposed to take charge.
Newspaper Excerpt
There was a run on the Bank of Ballard last Friday as a result of rumors that the bank was insolvent.
Source
newspapers
2. February 1, 1903 Suspension
Cause
Bank Specific Adverse Info
Cause Details
After the run investigators found no gold or bills in the safe, dishonored drafts and evidence of misapplication of funds; receiver was petitioned and appointed rather than reopening under trusteeship.
Newspaper Excerpt
the bank failed to open ... the Bank of Ballard was closed February 1, 1903.
Source
newspapers
3. February 5, 1903 Receivership
Newspaper Excerpt
On the petition of J. B. Lucas ... E. L. Blaine was appointed receiver of the bank of Ballard, by Judge Tallman. His bond was fixed at $10,000. Mr. Blaine at once filed his bond and oath, which were approved by the court. (1903-02-05 report of receiver appointment).
Source
newspapers
4. March 26, 1904 Other
Newspaper Excerpt
Receiver E. L. Blaine ... will pay the last dividend to creditors Saturday ... This will wind up the business of the bank. (dividend/payment winding up).
Source
newspapers
5. May 12, 1904 Other
Newspaper Excerpt
E. L. Blaine, receiver of the defunct Bank of Ballard, was discharged by Superior Judge Bell ... The affairs of the bank were wound up several weeks ago.
Source
newspapers

Newspaper Articles (14)
1. January 31, 1903 The Seattle Star Seattle, WA
Article from The Seattle Star, January 31, 1903

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BANK OF BALLARD CLOSES ITS DOORS mination Shows That Institution Is Solvent and It Will Reopen on Monday Preston, E. B. Cox, John Johnson BALLAND. Jan. 11-A meeting of and Thos. Hegeahl. In the mean200 creditors of the Bank of time it was decided to file a friendly which has suspended on suit for a receiver in order to foreof the run which was startstall any intmical action in that line. resterday, was held here this INSERT BALLARD to consider what steps At the meeting cash subscriptions sppear best to be taken in aggregating $20,000 were made to enmatter. H. 0. Shuey of Beattle, able the bank to reopen on Monformerly owned the bank. and day, and It was promised by nearly Cos. who examined the books all the depositors that they would aight, reported that the liabilicontinue to give the bank their supconsist entirely of deposits, port. The long illness of Cashier W. to $71,242.43. and that the W. DeLong and his consenuent abNaturces amount to $97,904.61: of sence from the bank is thought to which $51,402,11 is bills receivable have been the primary cause of the $46,502.56 in in real estate. trouble. committee of five was selected It is freely asserted that the run was malicious, started by "knock+ investigate farther and recomers" for the purpose of injuring the Blid a course of procedure on Monbank. A large majority of the credday. The following compose the Itors are satisfied as to its solvency. committee: John W. Peter, A. W.

2. January 31, 1903 The Seattle Star Seattle, WA
Article from The Seattle Star, January 31, 1903

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BANK OF BALLARD RECEIVER On the petition of J. B. Lucas In the supertor court this afternoon, E. L Blains was appointed receiver of the bank of Ballard, by Judge Tallman. His bond WAS fixed at $10,000. Mr. Biains at once filed his bond and oath, which were approved by the court.

3. February 5, 1903 The Seattle Star Seattle, WA
Article from The Seattle Star, February 5, 1903

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contributed to this amount are Gue Bethe, butcher: B. H. Freyd, clothier: Knoshner Bros., dry goods, and many others. These citizens want to know what became of this money between Friday night and Saturday morning, and who is responsible for its disappearance. There is only one man who can' enlighten them, and he has gone into retirement behind the doors of his private residence, which are guarded by officers of the law. It has been published that there was a "run" on the Bank of Ballard last Friday as a result of rumors that the bank was insolvent. This statement is true, but what has not been made public is the manner in which this run was met, On Friday a score or more of depositors went to the bank singly and in pairs and attempted to draw out their deposIts. Among these depositors were several women. Their deposits were in no instance more than a few hundred dollars, but represented all of their savings. The presentation of their several checks was met with a uniform response: That the bank was ready and willing to pay, but unfortunately had nothing but silver on hand. Did the depositors want the entire amount in silver and had the depositor brought a sack in which to carry It away? Upon receiving a negative response the depositor was requested to call on the following day and get the amount in gold and bills. On the following day the doors of the bank remained closed and an official investigation revealed the fact that there was no gold or bills in the safe and only $107 in silver. There was one noticeable exception to this rule. This was in the case of City Treasurer W. F. Grill. He had also heard the rumors of insolvency and applied at the bank for the pur0 pose of withdrawing $15,000 of city funds which he had deposited there y lean than three weeks before at the 10 earnest solicitation of President De

4. February 6, 1903 The Seattle Star Seattle, WA
Article from The Seattle Star, February 6, 1903

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MORE EVIDENCE COMES TO LIGHT rchants Who Were Swindled by the Bank of Ballard Declare Their Intention of Beginning Criminal Prosecutions--- Assets Still Shrinking is that of a resident of Ballard who affairs of the Bank these money orders at the postoffice borrowed from friends $750 with remain the principal for payment. When this was reinterent which to make the firial payment on in that town, and fused be asked that one of the his house and lot. As the payment asserted by prominent smaller orders be cashed, saying the was not due for several days, he put men and citizens that they family were in need of the money. the money in the Bailard bank for begin criminal proThis request was also refused. the safe keeping. receiving in exchange against President De Long postmaster acting under instructions connected with the bank's a certificate of deposit. The payfrom Receiver Blaine. some official action la ment fell due Baturday, and when In explanation of how he came the man went to the bank to get his Receiver E. L. Blaine beInto possession of the money orders night. money, he found the doors of the Inwhich should appear as a part of stitution closed, What is still more the bank's assets, the bank's obligaday brings to light new evipeculiar, is the fact that the books tion having been given in return for alleged rascality, and this of the bank fall to show what bemail brought to some of them, Hill said that they were his men of Ballard dishoncame of the money. personal property, the having purTonight the depositors are to hold chased them with his own private drafts that will probably be funds. He did not state why he had a meeting for the purpose of ashave of the Initial criminal Issued the bank's certificate of dethat now seem inevitsigning their claims to the board of three trustees elected Wednesday posit for them. President De Long still renight. When this has been accomThis morning D. R. Schussler, a seen, his present illness given as the reason for his plinhed, the court will be petitioned prominent grocer of Ballard, received from San Francisco a dishonored ation to discuss the affairs to vacate the order appointing a redraft. This draft. which was for a ceiver, and to place the affairs of wrecked Institution of which the bank in charge of the trustees. sum considerably more than $100, the executive head. The Scandinavian & American was purchased by hird from the Bank Interviewer was admitted to of Ballard Jan. 18. It was drawn on bank of this city has perfected arresidence last evening. but was Han Francisco and sent to Schilling rangements to open a-branch in Balpermitted to speak to the sick lard. This bank will offer to take & Co. of that city in payment for a He was in bed and attended charge of the affatrs of the defunct bill of goods. The draft was diswife and two daughters. Institution, make all possible collec# honored by the bank on which It told in the Star yesterday one was drawn and returned to the tions, and possibly make an advance deposited several hundred maker. Mr. Schussler declares his to depositors If an examination of worth of postoffice money the books justify such a course. intention, of proceeding with a crimin the bank last Friday and It is now thought that instead of Inal prosecution against President given * pertificate of deposit for paying 81 cents on the dollar, It in De Long. amount. On the following day doubtful If the amets will be suffiPeters & Reed, and John Johnson, failed to open Its doors. and merchants of Ballard, this morning clent to pay so cents on the dollar, an Investigation was made of received dishonored drafts and later no record of these checks through the mail. They anorders was found, nor did nounce their intention of joining appear among the assets of the with Mr. Schusster in the prosecution of De Long on a charge of obafternoon E. E. Hill, STORY OF taining money by false pretenses. step-son of President De Bull another instance of the manwho was acting cashier at ner in which the unwary were fleeced the bank failed. presented PODDEDV

5. February 7, 1903 The Seattle Star Seattle, WA
Article from The Seattle Star, February 7, 1903

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SENTINELS GUARD DE LONG HOUSE Repositors of Defunct Ballard Bank Take Steps to Prevent Escape of Its President the conversation between De Long m depositors of the wrecked Hegdahl. pledged himself to carry and Dill. It is this transaction that out the wishes of the depositors an if Ballard are determined that will form the basis of Mr. Dill's promexpressed in the motion made by Mr. ecution of De Long. they are to be despoiled of their Dill. This action will probably be Dishonored drafts and checks consavings those whom taken Monday or as soon thereafter tinue to come in through the mails, held responsible for their loss as the trustees are given authority and the few citizens of Ballard who shall Bot escape punishment. by the court to take charge of the believed they had escaped without affairs of the wrecked bank. midnight last night two loss by reason of the bank's failure, sentineis have been pacing up A majority of the depositors, reprenow find that exchange on other citand Gown before the doors of the senting also a majority of the deles boughht and paid for by them is refilence of President De Long. posits, have expressed their willingif not worth the paper on which It is Matries are in the pay of the ness to assign their claims to the written. Several business men who of the bank and are untrustees. As soon as this is done, have been victimized in this manner miems piedge not to permit De which will probably be this evening declare their Intention of beginning leave the house lest he or Monday morning. the court will criminal proceedings against the offiattempt to leave the state and be asked to vacate the receivership cers of the bank. Vial for what the depositors and place the bank's affairs in the Receiver Blaine is still at work in hands of the trustees. his criminal appropriation what has so far proved a vain atIn case the trustees do not act the funds confided to his keeping. tempt to straighten out the tangled At deylight this morning the quickly enough to satisfy those inaccounts of the bank. He finds that terested several of the more promlsuards who had stood watch during during the last five days the bank the easly morning hours were renent merchants of Ballard express was open for business no bank actheir Intention of beginnig criminal lieved by two others who guarded counts were kept, or at least none the De Long residence until noon, proceedings against President De that could be called such. *Mn they in turn were relieved by Long on their own personal account. the first two, In this manner it in An Ugly Feature Among these is C. A. Dill, who Imposed to guard the premises One ugly feature that has come participated 80 actively in last Night and day until the three trusnight's meeting. Mr. Dill stated to light through investigations alby appointed last Wednesday night this morning that unless warrants ready made, is the fact that the offiby the depositors have an opportunclais of the bank permitted certain were procured by the trustees by My to swear out warrants for the arMonday night he would act on his persons to make over-drafts on the of De Long. own responsibility and swear to a day that the bank closed, while othcomplaint against De Long. ers who had plenty of money to their A Consational Incident On the afternoon of Jan. 30, the credit. were not permitted to draw A Immational incident attended the last day the Bank of Ballard was against their accounts for even small mablishment of the guard over the open for business, Mr. Dill went to amounts. At least one of the perperson of President De Long shortly the bank at 8:20 o'clock to see why sons 80 favored in the matter of before midnight last night, The two a check given by him against his deover-drafts has been a. constant atmen the sent to do guard duty for posit account. had not been cashed. tendant on the De Long family since first six hours demanded adwhen the amount of money to his the smash. mistance to the De Long residence in credit at the bank WAR far in exReceiver Blaine has also discoverorder to assure themselves that their cess of the amount of the check. De ed other facts that on their face lan was really Inside the house. Long explained that there was not seem to Indicate transactions of a When admittance was denied them, enough money on hand to cash the more or less criminal charact Tothey forced an entrance and assured check in full. but that he would have day a resident of Clallam county aphouse, memselves that De Long was in the $30,000 in the bank on the following plied to Mr. Blaine with an order morning. for a $400 check made in favor of his Being satisfied that they were to "Then you will be open for busison, and deposited by the maker in hard w a cage from which the bird ness tomorrow, as usual? asked Mr. the Bank of Ballard, subject to the were not already flown, the guards Dill. mon's order, the outside. one taking up his staThe check could not be found, and Do Long's Promise the at the front and the other at no record of It appears on the bank back door, "Certainly," replied De Long. books. "This temporary shortage of cash dence The guarding of the De Long resiSimilar instances of funds unaccould not be foreseen, but I have Ing was decided upon at a meetcounted for are cropping up daily, made arrangementa to have $30,000 of the depositors of the Bank of and the end is not yet. in cash here in the morning." Ballard. lard, isst held in Sanborn's hall, Balare still doing business. evening the As

6. February 7, 1903 The Seattle Star Seattle, WA
Article from The Seattle Star, February 7, 1903

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Hegdahl. pledged himself to carry out the wishes of the depositors an expressed in the motion made by Mr. Dill. This action will probably be taken Monday or as soon thereafter as the trustees are given authority by the court to take charge of the affairs of the wrecked bank. A majority of the depositors, representing also a majority of the deposits, have expressed their willingness to assign their claims to the trustees. As soon as this is done, which will probably be this evening or Monday morning. the court will be asked to vacate the receivership and place the bank's affairs in the hands of the trustees. In case the trustees do not act quickly enough to satisfy those interested several of the more prominent merchants of Ballard express their Intention of beginnig criminal proceedings against President De Long on their own personal account. Among these in C. A. Dill, who participated 80 actively in last night's meeting. Mr. Dill stated this morning that unless warrants were procured by the trustees by Monday night he would act on his own responsibility and swear to a complaint against De Long. On the afternoon of Jan. 30, the last day the Bank of Ballard was open for business, Mr. Dill went to the bank at 8:20 o'clock to see why a check given by him against his deposit account. had not been cashed, when the amount of money to his credit at the bank WAR far in excess of the amount of the check. De Long explained that there was not enough money on hand to cash the check in full. but that he would have $30,000 in the bank on the following morning. "Then you will be open for business tomorrow, as usual?" asked Mr. Dill. Do Long's Promise "Certainly," replied De Long. "This temporary shortage of cash could not be foreseen, but I have made arrangements to have $30,000 in cash here in the morning." "You are still doing business, then?" persisted Mr. Dill. "Oh, yes; we are doing business as usual." "Are you taking deposits?" "Certainly." Mr. Dill immediately made out a deposit slip one deposited $9. He took the precaution. however, to mark on his deposit slip the hour, 3:20 o'clock, at which time the deposit Was made. On the following morning the bank failed to open, and such Investigation has since been made shows that It has been worse than bankrupt for months, City Treasurer W. F. McGrill and another man were present and heard

7. February 17, 1903 The Seattle Star Seattle, WA
Article from The Seattle Star, February 17, 1903

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DE LONG WILL BE ARRESTED Sheriff Cudthee this morning sent Deputy Chandler to Ballard with instructions to place W. W. De Long, president of the defunct Bank of Ballard, under the arrest. The warrant for De Long's arrest was issued last week and placed in the hands of Marshal Hunt of Ballard, for service, De Long was sick at the time, and the marshal contented himself with placing a deputy in charge of the accused bank officlal. Although De Long's bonds were fixed at $3500, he has not seen fit to give them. This course has NO displeased the victims of the bank failure that they Instated yesterday that the man should be placed under arrest, as they feared he would leave the country and escape prosecution. The warrant was accordingly returned to this city, and give Into the hands of Sheriff Cudthee for service He, in turn, instructed his deputy to proceed to Ballard at once and make the arrest. A majority of the depositors having funds in the wrecked bank. have usalgned their claims to three trustees named by them some time ago, Petition was made to Judge Tallman yesterday to place the affairs of the bank in the hands of these trustees. An order will be made in the matter, Thursday.

8. February 20, 1903 The Seattle Star Seattle, WA
Article from The Seattle Star, February 20, 1903

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Receiver Stays E. L. Blaine was retained as receiver of the defunct Bank of Ballard yesterday afternoon by Superior Judge Tallman. The matter came up in the equity court on the hearing of the petition of 200 creditors and depositors of the bank who wished to have Receiver Blaine discharged and three trustees appointed in his place. The petition was refused on the ground that the law provides for receivers only in the case of Insolvehecy of a bank.

9. May 2, 1903 The Seattle Star Seattle, WA
Article from The Seattle Star, May 2, 1903

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WINDFALL FOR THE BANK OF BALLARD Billard to Mr. Shuey in $3,445, InThe depositors of the defunet Bank stead of $10,000, as was at first anof Ballard will share in $6,555 more nounced. of assets than was at first supposed. Receiver Blaine today stated that This fact was discovered yesterday when he made his first report on in checking the entries of the the condition of the defunct bank's "elastic account" that every bank finances the $10,000 was found as a carries. An error to the amount named was found. liability in the "elastic account" of the bank. but that he was convinced The building in which the Bank of after a closer investigation that an Ballard was located was purchased error had been made. by W. H. De Long from H. O. Upon Informing Mr. Shuey of the Shuey. The former paid the latter mistake the latter presented a peti$6,000 at the time of the transaction. tion to the court asking that the InBut the cashier of Mr. Shuey's debtedness of the Bullard bank be bank, in Seattle, charged the deposit decreased the sum in question and a of the Ballard bank with that amount instead of crediting it, The decree has been entered to that Interest on that sum for the time effect. that has since elapsed was $655, CHICAGO, May 2.-Wheat 727-8 which was also charged to De Long. Hence the liability of the Bank of to V31-4.

10. March 19, 1904 The Seattle Star Seattle, WA
Article from The Seattle Star, March 19, 1904

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E. L. BLAINE, receiver for the defunct Bank of Ballard, has announced that he will pay the last dividend to creditors Saturday. This payment will be 24 per cent, making in all 34 per cent that the unfortunate depositors will have/recelived on their losses. This will wind up the business of the bank. -

11. March 19, 1904 The Tacoma Times Tacoma, WA
Article from The Tacoma Times, March 19, 1904

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STATE POINTERS Receiver E. L. Blaine yesterday gave notice to the creditors of the Bank of Ballard that he would wind up the affairs of the wrecked institution at once, making the payment of the last dividend at the bank in that city next Saturday afternoon, March 26. The second and last dividend will amount to 24 per cent of the original claims held by the depositors, making 34 per cent that has been realized by the creditors of the bank, which was closed February 1, 1903.

12. March 21, 1904 Aberdeen Herald Aberdeen, WA
Article from Aberdeen Herald, March 21, 1904

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# WASHINGTON STATE NEWS. The receiver of the defunct bank of Ballard has been ordered to distribute the remaining funds in his hands. After much protest and discussion, Japanese workmen have been admitted into the labor union in the panel and folding box factory at Hoquiam. W. J. Burns, supposed to have been killed in a balloon ascension in Australia, is located in Walla Walla, and is heir to a large farm in Canada. Negotiations for the sale of the Washington hotel at Seattle are under way between Don H. Porter, of Salt Lake, and the owners of the building. F. A. Hazeltine of South Bend, has been appointed by the governor to succeed James E. Bell, of Everett, on the board of regents of the state university The Seattle Electric Company, owning the Seattle street railway system, reports gross earnings for last year of $2,112,473, net earnings of $615,191, and surplus of $335,072. Seattle's three gas companies will be consolidated April 1. Samuel Hill has disposed of his interests in the Seattle Gas and Electric Company and will open a law office in Seattle. The Alaska Steamship Company's steamer Jefferson, now building at Heath's shipyards, Tacoma, will be launched April 2. The Jefferson is being built for the Southeastern Alaska traffic. The penitentiary jute mill, which has been shut down for several weeks for repairs to the machinery, has been started up again. A large number of convicts are working full time in the mill turning out grain bags. The demand for sacks from farmers in Eastern Washington is increasing.

13. March 21, 1904 Aberdeen Herald Aberdeen, WA
Article from Aberdeen Herald, March 21, 1904

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The receiver of the defunct bank of Ballard has been ordered to distribute the remaining funds in his hands.

14. May 12, 1904 The Seattle Star Seattle, WA
Article from The Seattle Star, May 12, 1904

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RECEIVER DISCHARGED AFFAIRS OF DEFUNCT BANK OF BALLARD HAVE BEEN ALL SETTLED E. L. Blaine, receiver of the defunct Bank of Ballard, was discharged by Superior Judge Bell this morning and the sureties on his bonds released. The affairs of the bank were wound up several weeks ago, the money on hand having all been paid out and the property sold to satisfy the creditors. The creditors of the Bank of Ballard have been paid about 34 per cent on the dollar. while the creditors of the Ballard Savings and Trust company, an institution run in connection with the bank. were paid 60 per cent on the dollar. The Bank of Ballard and the Ballard Savings and Trust company were declared Insolvent more than a year ago.