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Another Failure. NEW WHATCOM, Oct. 1.-The Blaine state bank of Blaine, of which H. W. Wheeler is president and E. R. Wheeler cashier, has gone into the hands of a receiver. Assets and liabilities not stated. It was the only bank in Blaine and Was a successor to the Blaine National bank which suspended one year ago.
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BANK FAILURE. New Whatcom, Sept. 30.-The Blaine State Bank, of Blaine, of which H. W. Wheeler is president and E. R. Wheeler cashier, went into the hands of a receiver today. The assets and liabilities are not stated. It was the only bank in Blaine and was successor to the Blaine National Bank which suspended a year ago.
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THERECEIVER OUSTED Wheeler Gets His Man in the Blaine National Bank. BUT HE IS ARRESTED HIMSELF. Receiver of State Bank, Goes in at Pistol Point, but Is Compelled to Give Up-People Excited. Excitement has broken out afresh in the difficulties of the Wheelers and their banks at Blaine. They have been operating the Blaine State bank as the successor of the Blaine National bank. which became embarrassed a year ago, and was thrown into liquidation, retaining its old set of officers with H. W. Wheeler as president and E. R. Wheeler as cashier. A few days ago Lester W. David was appointed receiver of the Blaine State bank by the superior court for Whatcom county, and took possession of the property at the point of a revolver. Yesterday the Wheelers made a new move, and having secured the appointment by Judge Hanford, of the Federal court, of R. W. Emmons, of this city, as receiver of the Blaine National bank, they proceeded to Blaine, and are now in possession. The particulars are given in the following special dispatch to the Post-Intelligencer: "Whatcom. Oct. 4.-Special.-Deputy Marshal McGinnis returned from Blaine this evening, having this afternoon under a sweeping order from Judge Hanford. ouster Receiver Lester W. David from the possession of the Blaine State bank and placed R. W. Emmons, of Seattle, in charge of all its books, papers and assets as receiver of the Blaine National bank. to which the State bank is successor, having the same officers and stockholders, the only capital of the latter being the capital stock of the former, which still has a corporate existence. An excited crowd surrounded the bank and witnessed the transfer. David made a formal protest personally and through Senator Dorr, acting as his counsel, but no difficulty occurred. "About the same time E. R. Wheeler, cashier of both institutions, was arrested on complaint of D. C. Pruner, charged with receiving money for deposit in the Blaine State bank when he knew said bank to be insolvent. He will have a hearing tomorrow. He gave a bond of $2,500 for appearance." The Wheelers Charge Conspiracy. In applying to Judge Hanford for a receiver for the Blaine National bank. E. R. Wheeler, who brings the action, says that David was appointed in pursuance of a conspiracy, and that, although he neglected to execute a proper bond. he entered the bank, pistol in hand, and compelled the old officers to get out. Then Wheeler says David forcibly seized the property, including all the records and private papers of the Blaine National bank, together with a large sum of money and one promissory note of great value. By reason of the wrongs and trespasses committed, the deposed cashier claims that the Blaine National bank will be unable to pursue its purpose of carrying the corporation through liquidation. He then refers to David as a man wholly irresponsible, financially insolvent and of bad reputation as a business manager and as an officer, known to be largely in default to the city of Blaine in his office as former treasurer. The petition is supported by the affidavits of L. H. Wheeler and H. W. Wheeler, the latter of whom, in addition to being president of both corporations, claims to hold forty-six shares of stock in the Blaine National bank and five shares in the Blaine State bank, as well as being trustee for a large amount of stock. E. R. Wheeler, cashier of both banks, claims fifteen shares in the Blaine National bank and ten shares in the Blaine State bank, and to be trustee for 274 shares of the former and 100 shares of the latter. He has made the petition, he says, on behalf of all the stockholders except a small minority who have joined the conspirators. Judge Hanford, on appointing Emmons, fixed his bond at $2,000. How the Old Succeeded the New. It appears from the papers in court that the Blaine National bank was organized in 1891 with a capital of $50,000, and continued actively in business until Sentem-
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The Blaine Bank Failure. Whatcom Oct. 5.-Special.-The Blaine bank affair is about as complicated in a small way as the Northern Pacific receivership matter is in a large one. The Emmons receivership is in the interest of the Wheelers, and it looks now as If they have the best of It. It is alleged that the appointment of David as receiver of the state bank was made solely upon an ex parte showing. and without any evidence whatever in support of the general allegation of insolvency. And further, It is alleged that the three directors whose affidavits supported the application of Stone for the appointment of the first receiver are themselves indebted to the bank in the aggregate amount of about $10,000. The Blaine National Bank corporation has never been dissolved, and its capital stock has constituted the only capital of the newer institution which undertook, with the same officers. to settle up the former's affairs. Judge Hanford's sweeping order respecting Emmons' receivership of the Blaine National does not dismiss David from the receivership of the state bank, but simply places him in the position of holding the bag with nothing in it.
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REPORT ON THE BANK. Receiver Emmons in Charge of the Blaine Institution. DAVID STILL HOLDS THE BOOKS Emmons Tells How He Got Possession -The Vault Was Empty-David Has the State Bank's Assets. R. W. Emmons, the recently appointed receiver of the Blaine National bank, yesterday filed his first report in the Federal court, telling how he got possession of what property of the bank he could find, with the exception of some of the books, which were in the possession of L. W. David, the receiver of the Blaine State bank, appointed by the superior court of Whatcom county. It will be remembered that the Blaine State bank was really the successor to the Blaine National, having been organized for the purpose of conducting the business of the latter bank. Receiver Emmons says in his report that when he went to Blaine on October 4 he found the keys of the bank in the possession of Mr. David. He made a demand for the property of the bank, and after some little delay David turned over the keys. Emmons says that he also took possession of the Cain mill, which had been in the possession of E. R. Wheeler, and put it in charge of John Shay. When he opened the burglar-proof safe in the vault of the bank he found it to be, like Mother Hubbard's cupboard-perfectly empty. Emmons then went out and demanded of David possession of the Perley single mill. David at first refused, but in the afternoon came around and turned it over. The right of possession of the mill was in E. R. Wheeler, as trustee for the Blaine National bank. Emmons then made a demand of David for all the books, records and papers of the Blaine National, which were in David's private office in the back part of the Blaine postoffice. While in David's office he saw on the floor four books, which E. R. Wheeler said belonged to the bank. These were the remittance register, the collection register, draft book and signature book. David refused to give up possession of them and Emmons now applies to the court for an order compelling him to do so. Arthur & Wheeler, attorneys of this city, had several notes, mortgages and securities of the bank, which were delivered to them about thirty days ago for collection. They had commenced suit on part of these and, with the exception of those upon which suit had been started, the securities were turned over to Emmons. The receiver says he is now preparing an inventory of all the books, records, notes, property, etc., and as soon as completed will put it on file.
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David Ordered to Deliver the Books. The only new development in the conflicting receiverships of the Blaine Nation bank and the Blaine State bank Was an order from Judge Hanford given to Receiver Emmons. of the National bank, requiring Receiver Lester W. David, of the State bank, to deliver to Receiver Emmons certain books claimed to belong to the National bank, or show cause for not doing so by next Monday.
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An Alleged Banker's Conspiracy. SEATTLE, WASH., Oct. 12.-Lester W. David, receiver of the Blaine State Bank, who recently was compelled to surrender to R. W. Emmons, r , eiver of the Blaine National Bank, property alleged to Belong to the latter institution, has filed an affidavit in the United States Court, alleging conspiracy to loot the National Bank, and for that purpose, he says, the State Bank was organized, while the National Bank still preserved a corporate existence. H. W. Wheeler was president, and E. R. Wheeler, cashier of both institutions, and Receiver David cites Transactions in alleged furtherance of the conspiracy, the practice of the Wheelers being to realize on the assets. of the National Bank deposit the money in the State Bank, and then borrow it on their individual account.
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Blaine Bank Case Argued. In the case of the Blaine National bank against Lester W. David, receiver of the Blaine State bank, a motion to vacate the order appointing a receiver of the National bank was argued and submitted to Judge Hanford yesterday. The argument was upon the jurisdiction of the Federal court, and Judge Hanford will hand down his decision today. J. T. Ronald. David's counsel, contended that the court had no jurisdiction in the case, because all the parties to the suit are domiciled in the state. He claimed that the appointment was in the interest of the Wheelers.
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Court and County Notes. Joseph Ludwig, a native of Austria, was made a citizen yesterday by Judge Hanford. Articles of incorporation of the Seattle Call Publishing Company, capital stock $3,000, were filed yesterday by S. M. Allen, L. W. Kidd and A. H. Schmitt. Receiver Emmons. of the Blaine National bank, yesterday filed in the Federal court his bond of $2,000, with James Sheehan and A. P. Mitten as sureties. The estate of M. V. Stewart was given judgment for $300, with Interest at 1½ per cent., from September 8, 1894. against George E. Hall and D. S. Galloway on a promissory note. W. H. White, administrator of the estate of Martin V. Stewart, who was one of the defendants in a mortgage foreclosure case, asked the court to dismiss the action, as the debt had been fully satisfied. Ole R. Johnson, who is being sued by Jennie Johnson for a diverce, was served with summons October 7, but has failed to make answer. Upon this showing Judge Humes granted a motion for default. In the case of W. L. Whitney. jr., VS. M. R. Galloway and others, Judge Langley yesterday gave the plaintiff judgment against Galloway for $1,700 and costs, amounting to $31, and gave the defendant. Parker Adams, trustee, judgment against Galloway for $678. A jury acting under instructions from Judge Humes, returned a verdict yesterday for John L. Marsh against Martin Cavanaugh for $250. The suit was on a contract wherein Marsh was to perform labor and land in payment. Cavanaugh received did not live up to his agreement, and the case was brought into court after having dragged along without a settlement for three years. In the case of the Knickerbocker Trust Company, of New York, against the. Washington Central Railroad Company and the Northern Pacific Company et al., the plaintiffs yesterday filed a petition in the Federal court for the substitution of the name of A. F. Burleigh. 88 receiver, for those of Payne, Oakes and Rouse, the old receivers. Licenses to wed were issued yeterday by Auditor Beman to William H. McInnis and Agnes Cooke. both of Columbia: Antone George and Mary Rashid. both of Seattle: William Alra Baur and Allie Irene Algar, both of Seattle: Charles A. McAllister and Frances C. Johnson, both of River Park; John V. Lillquist and Emma L. Jarn.
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PERSONAL. W. E. Schricker, banker of La Conner, is at the Butler. H. C. loward. of Mount Vernon, attorney. is sit the Diller. P. Mo loy, of Edison, lumberman, is register I at the Diller. Norto D. Walling, ex-mayor of Everett, is a the Northern. Rev. A. Sample, of Port Townsend, is stayir : at the Butler. J. W. Iume, of the Port Angeles salmon cannery is at the Butler. Lester W. David, receiver of the Blaine National bank, is at the Butler. J. H. Bloedel, of Whatcom, manager of the Blue Canyon Coal Company, is at the Butler. E G. English, of Mount Vernon, of the logging irm of English & McCaffery, is at the D ller. Mr. 0. S. Lattimore. of Fort Worth. a promine t Texas attorney, was in the city for a fe / days, leaving for Olympia yesterday. Mr. J. B. Yakey and Mr. H. W. Martin, two pro ninent county officers from Stdney, Kit sap county spent Wednesday in the city J. Tich er, of Rochester, N. Y., is at the Butler. Mr. Tichner is a member of the firm of Tichner & Jacobl, large wholesalers of Rochester. Mr. M. Prager leaves today for San Francisco to take charge of the Red Front there, ille Mr. Ike Prager will continue to mana ce the business here. Louis Garesche, formerly of the Lang Fish Co mpany, is in the city on his way to New York to engage in business there, and is gistered at the Butler. Mr. J. M. Hixon, who has been confined to his rd xm for several days with a severe cold, is recovering and expects to be at his busir SS again in a day or two. Mr. as 1 Mrs. John C. Michel gave a family d aner on Christmas day, at which were pre sent Mr. H. Michel, Mrs. Michel, Mr. Loui 9 Michel, Mr. George Michel, Mr. William Dohel, Miss Lizzie Roth and Mr. M Grass Mr. E. Reber still lingers with a wearisome ape il of sickness in Providence hospital H is well cared for, and his nurse yesterdaj reported his temperature favorably redu ced, and said that his sound rest for the 1s st few nights had been extremely favora ble. If no relapse occurs he will be able ( sit up in a few daya
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tain property in which Sheafe, as receiver, claims to have some interest. Default was signed yesterday by Judge Langley in the case of B. B. Sullivan vs. Oran Kiteley and Kate L. Kiteley. The case of Daniel Jones vs. H. B. Dingley was stricken from the trial calendar yesterday by agreement of both parties. Judge Langley signed default yesterday in the case of A. C. Anderson vs. J. H. Foster, Mary E. Foster and G. C. Zimple. Judgment was signed yesterday by Judge Langley in the case of Phoenix Suspender Company vs. John Doe and Richard Roe for $306.25. Judge Osborn signed default yesterday in the case of William E. Tullis vs. P. J. Corcannon, Nellie Concannon, H. H. Edwards and H. Christianson. Judge Hanford has discharged Receiver R. W. Emmons, of the Blaine National bank, "from further duties and responsibilities" and released his bondsmen. Execution was issued out of the superior court yesterday in the case of the Peerless Manufacturing Company vs. H. Richman & Co. and judgment entered for $300. Judge Osborn yesterday dismissed the case of Isadore Gladinowski vs. Frank Kaczmareck for want of prosecution and entered a judgment for defendant for costs. The supreme court has dismissed the motion for an appeal in the case of H. H. Smithson, appellant, vs. Ira Woodin et al., respondent, and taxed the costs, $25.50, to the appellant. Judge Langley signed an order confirming the sale of the following described property in the case of Thomas W. Gordon, as trustee of Lake Lodge, No. 68, K. of P., vs. Mrs. V. D. Mandel: Lot 1, block 4, Baxter's addition to the city of Seattle. Upon petition of Flora Bell Pratt and Sarah Dell Pratt, minors, by their attorney, Judge Osborn yesterday granted a motion dismissing their complaint and action in intervention in the case of Northwestern and Pacific Hypotheek Bank vs. Elizabeth G. Pratt, Putnam R. Pratt et al. Decree was signed by Judge Langley yesterday in the case of the New England Mortgage Security Company vs. Thomas M. Alvord, Martin J. Alvord, D. F. La Fevre and Thomas J. Sharkey, in which the plaintiff was awarded a verdict of $20,100 and interest and the foreclosure of a mortgage. I. W. Entz, garnishee in the case of Dexter Horton & Co. vs. M. L. Baer, J. B. Metcalfe et al., was discharged yesterday by Judge Osborn and allowed $10 for attorney's fees. The court also decided that A. W. Buddress, intervening defendant, is the owner of the judgment in the case of Buddress vs. John Schaffer et ux., and that he and Entz recover attorney's fees from the plaintiff.
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# PERSONAL. F. G. Kelly, a logger of Arlington, is at the Diller. W. T. Forrest, state land commissioner, is at the Butler. Willis Thorp, mining man of Alaska, is at the Northern. M. N. Norton, a milling man of Tacoma, is at the Stevens. C. D. Kimball, postmaster of Mount Vernon, is at the Diller. W. G. Douglass, a rancher of Stanwood, is registered at the Diller. Lester W. David, receiver of the Blaine National bank at Blaine, is at the Butler. Miss L. P. Bates, of Willows, Cal., is visiting the city, the guest of her sister, Mrs. J. O. Thompson. H. W. McNeil, formerly receiver of the Oregon Improvement Company, and his niece, Miss Little, are at the Rainier-Grand.
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vot M had glaine, more trouble with her banks than many & city of 25.000. In 1890 the Blaine National bank was started, with a capital It continued doing business un6 204. when It suspended. the managers organizing what was known as the Blaine State bank. A hubbub was kicked up over the transaction, and Lester W. DavM was appointed receiver of the State bank and the National bank, after H. W. Wheeler and others had been deposed. These cases were fully aired before the Federal court in this city, and created quite a sensation. Receiver David 1s about to wind up the receivership affairs in the superior court of Whatcom county, but before he accomplishes, his Purpose another receiver, R. H. Roas ppointed yesterday by Judge Hant will examine into the affairs of the nstitutions. Ross' appointment was made at the request of Addie B. Bryant, of line, a stockholder -utoo " paid one Nation Black eq: . plaint in the Federal cour yesterday, in which she alleges fraud of the part of Receiver David. The complaint is a volminous one, reciting the Mstory of the National bank. its intented liquidation and the organization of the State bank. Concerning Receiver David, the complaint is "After David's appointment and after the transfer of the stock held by Wheelx, the stockholders of the national bank, who were also interested in the state Bank, held an election, at which Receiver David assumed to and did vote the stock held by him as receiver, and by that means was enabled, in conjunction with Green and others, to elect the officers of the national bank for the current term, David alone controlling 62 per cent. of the capital stock. By this means he elected himself, Miller, Green and another directore and trustees of the national bank. They assumed to control all the business and Interests of the national bank, withest having taken the oath of office or given bonds, or in any manner, further than the casting of the majority of the votes at the election, qualifying as required by the laws governing national banks. At the time of the election neither David nor Miller swned any stock in the national bank. "Since David's appointment he has undertaken to adjust matters affecting the state bank but has never reduced the assece to money so as to pay the creditors dividend and has never reported to the court as an asset of the bank the liabilby of Miller as a stockholder, and has taken no steps whatever looking to the collection of the Indebtedness of Miller. "The state bank is Insolvent and owing to Its creditors more than $8,000, and the assets of the state bank have been exbausted and its whole resources and property disposed of, except $3,000, due predun euju uodn Kq NUIMO pus adscriptions. "That David, Miller and another have conspired and confederated together for the purpose of defrauding the stockholdets of the national bank, and to deprive them of the use, advantage and benefit of the assets of the state bank, and to cause them to lose the money deposited with and owing by the state bank to the national bank, by agreeing and intending to cause the national bank to assume and take upon itself the payment of all the debta owing and outstanding by the state bank. They also propose to release Mill5'1 indebtedness, and in that way to enable David, as receiver of the state bank, to report to the superior court and make a showing that all of the debts and liabillties of the state bank have been paid and to obtain his discharge. To that end David has obtained an order authorizing him to settle and adjust the claim of the national bank against the state bank, by the national bank assuming all the debts and Habilities of the state bank, in conelderation of the state bank turning over to the national bank the former stock held by David as receiver of the state bank. David, Miller and another constituting a majority of the directors of the national bank, Intend to accept the offer made by David, as said receiver, to consent to an order of the superior court imposing and fastening all the assets of the national bank the said indebtedness, thereby releasing Miller from his liability upon the unpaid subscription. "That the national bank is without authority in law to transact any other business than that of reducing its assets and property into money. to be distributed to the creditors: that all. of the creditors have been paid. save the stockholders. "That the defendants, further intendIng. contriving and confederating together for the purposes of injuring and defrauding the creditors of the national bank and for other reasons, are intending to fasten and impose upon the national bank and Its creditors all expenses of the receivership and of the settlement of the state bank, aggregating a large sum, and to make the same chargeable and payable out of the assets of the national bank. as a preferred lien, thereby taking out and withholding and destroying the occurities properties and assets belonging our JO pus on 01 national bank." The confirmation of Receiver David's report is set for hearing before the Whatcom county superior court for December 19 believes if