22156. United States National Bank (Centralia, WA)

View Charter #8736 on SPMC

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 8736
Charter Number: 8736
Start Date: September 21, 1914
Location: Centralia, Washington (46.716, -122.954)

Metadata

Model: gpt-5-mini
Short Digest: 78ac9c5f

Response Measures

None

Receivership Details

Depositor recovery rate: 66.7%
Date receivership started: 1914-09-21
Date receivership terminated: 1922-03-31
OCC cause of failure: Fraud
Share of assets assessed as good: 40.2%
Share of assets assessed as doubtful: 34.3%
Share of assets assessed as worthless: 25.4%

Description

The United States National Bank of Centralia was forbidden to open and suspended on or about Sept. 21, 1914 after an examiner's inspection; troubles were due to overexposure to commercial paper and officer defalcation (Charles Gilchrist). A receiver was later appointed and litigation and receiver actions continued into 1915; the bank did not resume normal operations. No depositor run on this bank is reported.

Events (5)

1. June 10, 1907 Chartered

Source: historical_nic

2. September 21, 1914 Receivership

Source: historical_nic

3. September 21, 1914 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Insufficient cash and heavy losses from financing mill and logging properties and over-concentration in commercial paper; examiners forbade opening after inspection.
Newspaper Excerpt: The United States National bank with deposits of over $1,000,000 ... failed to open their doors today following an inspection of the institutions' books by Bank Examiner Lloyd L. Mulit.
Source: newspapers

4. September 23, 1914 Other

Newspaper Excerpt: Sentenced to five years' imprisonment ... Charles S. Gilchrist, first vice-president of the United States National Bank of Centralia, was today taken to McNeil's Island federal penitentiary ... for embezzlement.
Source: newspapers

5. February 5, 1915 Receivership

Newspaper Excerpt: Clinton A. Snowden, receiver for the United States National bank, has been enjoined from paying a dividend to the bank's depositors ...
Source: newspapers

Newspaper Articles (15)

1. September 21, 1914 Daily Capital Journal Salem, OR

Article from Daily Capital Journal, September 21, 1914

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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. September 21, 1914 The Tacoma Times Tacoma, WA

Article from The Tacoma Times, September 21, 1914

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TWO BANKS SUSPEND CENTRALIA, Sept. 21.-The United States National bank and the Union Trust company of Centralia closed their doors temporarily today. At the request of the obard of directors, National Bank Examiner Mulit took charge of the two institutions. The United States National had insufficient cash to transact business satisfactorily and for that reason suspension was ordered for readjustment. Since the Union Trust Co. carried its balances with the United States National It was necessary to include It in the suspension. It is generally understood here that the financial affairs of the two banks can be adjusted 80 that there will be no loss.

3. September 23, 1914 Daily Capital Journal Salem, OR

Article from Daily Capital Journal, September 23, 1914

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BANK OFFICIAL IS GIVEN FIVE YEARS Charles S. Gilchrist, of Centralia Bank, Arrested Monday, Now in Prison Tacoma, Wash., Sept. 23.-Senteneed to five years' imprisonment on a plea of guilty to charges of embezzlement, Charles S. Gilchrist, first vice-president of the United States National Bank of Centralia, was today taken to McNeil's Island federal penitentiary to begin S serving his sentence. He was arrested Monday, following the closing of the rbank, by order of examiners and was n brought here for trial yesterday. Gilchrist's crime, as explained by George Dysart, a director of the defunct institution, consisted in taking in the money from the sale of about $15,n 000 worth of school bonds belonging to the estate of the late R. L. McCormick at of Tacoma and applying it to take up some worthless coal mine paper held by his bank. He is said to have made the transfer of funds because he knew the bank examiners were coming and he wanted to give his bank a good footing. He hoped to make another sale before it was necessary to settle for the McCormick bonds, but the governa ment examiners discovered the deal. There ere three counts in the inn, dictment returned by the local federal em grand jury, and Gilchrist could have 'm been sentenced to five years on each 11of these. Judge Cushman, bowever, or granting the request of Assistant District Attorney Fishburne, imposed the minimum sentence and allowed the la, counts to run concurrently.

4. October 2, 1914 The Meridian Times Meridian, ID

Article from The Meridian Times, October 2, 1914

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RECORD OF THE IMPORTANT EVENTS TOLD IN BRIEFEST MANNER POSSIBLE. Happenings That Are Making History -Information Gathered from All Quarters of the Globe and Given in a Few Lines. INTERMOUNTAIN. E. W. Swanbrough, a veteran automobile racer, was killed in a race at the Overland track at Denver. His machine plunged through a fence and a timber struck Swanbrough on the head. Unless the farmers east of Sandy, around Midvale, Crescent and Riverton, Utah, take drastic measures in fighting the hog cholera epidemic in those sections, the plague will spread throughout the state and become a serious menace, it is believed. Utah banks are not affected by the statement of the secretary of the treasury that he would withdraw federal deposits and federal emergency issued to banks which have high reserves and are charging high rates of interest, it was learned. None of the national banks in Utah made a request for emergency currency. Following a checking in by the United States bank examiner and the state bank examiner, the United States National bank at Centralia and the Union Loan & Trust company of Centralia, Wash., were forbidden to open their doors. The Twentieth infantry, which is now encamped at Fort Bliss, Texas, and at Fort Wingate, N. M., will return to Fort Douglas, Utah, when the troops are ordered away from the Mexican border. DOMESTIC. New rates filed by practically all the railways west of the Mississippi river and east of the Rocky mountains, withdrawing the privilege of shippers to concentrate into carload shipments at certain points less than carload shipments of butter, eggs, cheese and poultry, have been suspended by the interstate commerce commission until January 21, 1915. Theodore Roosevelt's youngest daughter, Ethel, wife of Dr. Richard Derby, will nurse the wounded in the hospitals of Paris and her husband will be a surgeon in the French city. William S. Evans, Philadelphia, f was elected president and San Francisco was chosen as the 1915 meeting place by the American Institute of Banking at the closing session of its twelfth annual convention at Dallas, Texas. a Thousands of customers attended the opening of Chicago's first municipal market on Thursday. Cabbage a sold at 2 cents, loose grapes, 5 cents, tomatoes, 2 cents, and noodles at 6 cents a pound. Radishes brought 0 3 cents and lettuce 5 cents a bunch. 7 Belated reports from missions esr tablished throughout the world by the Presbyterian church made public at New York tell of world-wide conditions unparalleled in the history of the church. There is no spot under I the sun, according to these reports, h where the European war has failed to strike a blow at commerce. 1The illness of Mrs. Helen Schuler at New Orleans was diagnosed as bubonic plague. This is the twentye eighth case reported since the malady was discovered June 27. The sovereign grand lodge of the Independent Order of Odd Fellows, in session at Atlantic City, N. J., reit fused to reduce the age limit of ade mission into the order. 0 Edward Teesdale, chief of staff of "General" Charles Kelley, who led an army of 1,400 unemployed men to Sacramento last winter, en route to Washington, D. C., has been released from the county jail at Sacramento after serving six months. S Two new cases of bubonic plague have been discovered at New Orleans. Henry A. Kolbe, high constable of Doylestown, Pa., was shot through the heart and killed by William Miller, 18 years old, as he was taking the young man to jail on a charge of having forged a check. Three men robbed the Baxter Springs, Kans., National bank of $8,000 and escaped. Hope that the United States would aid in bringing about the independence of their native land at the end of the great war was expressed in a telegram sent by the convention of Lithuanians at Chicago to President Wilson. The message also expressed a desire for a world-wide movement for general peace. Six persons were injured when a

5. October 9, 1914 Washington Standard Olympia, WA

Article from Washington Standard, October 9, 1914

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HAYS AGAIN ARRESTED / Second Charge Accuses Him of Embezzling $36,550 of Bank's Funds. W. Dean Hays, organizer and cashier of the Olympia Bank & Trust company which recently was closed, was arrested again Tuesday on a charge of embezzling $36,550 of the funds of that bank and was later released on an additional bond of $5,000. He was arrested last week on a charge of accepting $227.51 in deposits when he knew the bank was insolvent, and at that time furnished $10,000 bond, so that he is now at liberty under $15,000 bond. F. G. Blakeslee, W. D. McArthur of Tenino, E. W. Kearns and Louis Fortier were sureties on the additional bond. The latest charge against Hays is said to have grown out of the manner in which the local bank was financed and is so reported to be involved with the affairs of the failed United States National bank at Centralia. In view of the fact he was already under $10,000 bond, Judge Mitchell decided an additional bond of $5,000 would be sufficient, inasmuch as it could be raised or lowered later if desired. Wednesday Frank P. McKinney, assistant cashier of the Olympia National bank, was appointed receiver of the local and Tenino banks, but declined to handle more than the local bank. Another receiver will be appointed for the Tenino institution. Last Friday it was announced that Superior Judge Claypool would resign that position and be appointed receiver of these banks, but he announced Monday that, owing to the injury of his son Jack in a football game at St. Martin's college, he would not be able to accept the appointment because his son's health would demand too much of his attention.

6. December 24, 1914 The Seattle Star Seattle, WA

Article from The Seattle Star, December 24, 1914

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HERE and ELSEWHERE HERE Mrs. A. Reardon, Ray Young, James E. Sims and George F. Wilson arrested, charged with operat-ing "punch boards" at cigar stands. Earl Platt, university student, weds Jeanette Henderson of Ta-coma. State Labor Commissioner Olsen claims only cigar stand girls under 18 will be debarred. Capt. Garlick, former master of Minnesota, will command S. S. Northern Pacific. Nellie Brownlow, charged with stealing dress, acquitted. Beginning Friday, banks remain closed until Monday. Franklin, Lincoln and Broadway high schools hold Christmas as-semblies. West Seattle ferry boat to be laid up for repairs. Ferry Leschi, Lake Washington, will follow Sunday schedule Christ-mas. Plans discussed for asphalt sur-facing of Railroad ave, from Pike to Broad sts. City salaries totaling $136,000 paid Thursday. John W. Considine's auto dam-aged by fire. Christmas music at Christ Epis-copal church, Thursday night. Cost of litigation to be reduced one-half in United States district court. Winter weather delays Christ-mas mails. Max Wardall gives dinner to 250 unemployed at Brotherhood league. H. E. Hinkston, engine house No. 1, hurt when fire truck skids. Clara E. Kanouse sues city for $10,000 for fall on sidewalk. Charles Isadore, laborer, stab-bed in a quarrel with William Wil-liams. ELSEWHERE Emperor Francis Joseph reported dying. Mrs. Hannah Koskoff, 117, oldest woman in U. S., dies in New York. President Wilson plays Santa Claus for grandniece. Mount Etna showing activity. Gateman who lost job at Mattea-wan because Harry Thaw escaped gets $500 from Thaw as Christmas present. Yakima river frozen from bank to bank. St. Louis leper secretly deported from New York to Greece. Col. Goethals arrives in New York, en route to Washington. Whatcom dairymen will consider state tubercular test for dairy cows Saturday. Attorney Bert Linn appointed judge of Adams, Franklin and Ben-ton counties. J. W. Livingston, former preal-dent state normal school at Platteville, Wis., drowned at Forest Grove, Ore. Interior palace of the Kutuktu, Urga, Mongolia, destroyed by fire. Touchet State bank gets charter. Pope orders all Catholic bishops to assist all prisoners of war, irrespective of religion or nationality. Centralia Union Loan and Trust Co., which closed when United States National bank failed, may pay dividend soon. Mercantile Stores Corporation takes over chain of H. B. Claflin Co.'s stores. Annual poultry show opens at Aberdeen. Thirty-five convicts will be liber-ated at Walla Walla pen Christmas. Justice Guerin of Davenport near death after hour's imprisonment in water tank. Everett council refuses to reduce liquor license. Sunnyside high school raises $100 for Belgians. Britain's embargo on crude rubber exportation hampers rubber indus-try in U. S., is complaint. Spokane flour mills run night and day. Queen Wilhelmina signs bill for war loan of $110,000,000. Three days' hunt leads to discov-ery of body of Maurice A. Albertson, Wakefield, Mass., jeweler, in shan-ty; slain by robbers.

7. February 5, 1915 The Tacoma Times Tacoma, WA

Article from The Tacoma Times, February 5, 1915

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Receiver Enjoined CENTRALIA, Feb. 5.-Clinton A. Snowden, receiver for the United States National bank, has been enjoined from paying a dividend to the bank's depositors, unless there is money left after the city's claim for $54,000 has been paid.

8. February 10, 1915 The Tacoma Times Tacoma, WA

Article from The Tacoma Times, February 10, 1915

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BANK OFFICIALS TESTIFY Former officials of the United States National bank of Centralia testified before Judge Cushman yesterday in the case against Receiver Clinton A. Snowden to recover funds said to have been deposited after the bank had failed

9. February 26, 1915 Washington Standard Olympia, WA

Article from Washington Standard, February 26, 1915

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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.

10. March 3, 1915 The Seattle Star Seattle, WA

Article from The Seattle Star, March 3, 1915

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JU THE GIST Reuben Valenti, former Mexican official, killed himself at Guatemala city. It's likely Reuben would have saved himself this trouble by staying in Mexico. Attorney A. R. Tilden, Tacoma, appointed successor of Receiver Snowden of United States Nation. al Bank of Centralia.

11. March 4, 1915 The Seattle Star Seattle, WA

Article from The Seattle Star, March 4, 1915

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# ELSEWHERE Colorado governor signs prohibition bill. John D., jr., expresses desire to aid Colorado families made destitute by recent mining troubles. Brig. Gen. Scott, chief of army, who has long record as Indian fighter, will attempt peaceful settlement with Piute Indians. Brilliancy of Mellish's comet on rapid increase, reports Harvard observatory. Statement of Chas. E. Sligh at Los Angeles implicates Alfred Sells, confessed robber, in murder of Jacob Vogel and wife at Fruitvale. Joint resolution has passed both houses providing gold medals for ambassadors who acted as mediators between U. S. and Mexico. Exports to foreign countries show big increase in January report of commerce department. A. R. Titlow, receiver for defunct United States National bank, Centralia, gives depositors notice of 10 per cent dividend. Grays harbor rainfall 17.5 Inches behind average for winter. Ohio court holds million dollar insurance fund of Baltimore & Ohio Southeastern, illegal. Divers may be used in effort to learn whether Clarence Lucas, Seattle lumberman, met death in Mirror lake. N. P. headquarters at St. Paul reports that majority of people traveling to fair ask to be routed through Seattle. Col. B. K. Lawson resigns as superintendent of Oregon state penitentiary.

12. April 4, 1915 The Pensacola Journal Pensacola, FL

Article from The Pensacola Journal, April 4, 1915

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NATIONAL BANKS AND CAUSES OF THEIR FAILURE DOCUMENT ISSUED BY COMP. TROLLER OF CURRENCY SHOWS THIRTEEN INSTITUTIONS, BESIDES FIRST NATIONAL OF PENSACOLA, WENT TO WALL. The annual report of the comptroller of the currency to the third session of the sixty-third congress of the United States, issued December 7th. 1914, as document No. 1467, volume two, contains some interesting information concerning the failure of the First National and other banks banks during 1914. This report gives the name of the bank failing, the date of the appointment of receiver, which is the first act by the government after the failure of a bank, and also gives the causes for the failure as found by the government investigation. Below is given a list of the national banks that have failed during 1914, the date of appointment of receiver. and the cause assigned by the comptroller of the currency for the failure. Marion National Bank, Marion, Kansas, January, closed by run. First National Bank, Superior, Neb., January, fraudulent management. Barnesville National Bank, Barnesville, Minn., January, fraudulent management. First National Bank, Pensacola, Fla, January, injudicious banking. Americus National Bank, Americus, Ga., February, fraudulent management. First National Bank, Gallatin, Tenn., March, wrecked by assistant cashier. First National Bank, Wyatusing, Pa., March, depreciation of securities. First National Bank, London, Ky., April, wrecked by assistant cashier. First National Bank, Corning, Iowa, June, excessive loans to officers and directors. First National Bank, Johnson City, IIL, August, injudicious banking. First National Bank, Sutton, W. Va., August, defalcation of officers. American National Bank, Pensacola, Fla., September, closed by a run. United States National Bank, Centralia, Washington, September, defalcation of officers. First National Bank, West Elizabeth, Pa., October, injudicious banking. According to this report, the government recognizes thirty-two different causes for failures, some relating to defalcation, some for excessive loans to officers, some to fraudulent management. Others are listed as wrecked by the president, cashier, or some other officer, and some for other causes. It will be noted that in this report they do not charge fraud against either of the banks which failed in Pensacola, the comptroller's report accounting for the failure of the American National Bank, which re-opened shortly after it closed its doors, gives as the cause, "closed by a run," meaning a run of the depositors. In accounting for the failure of the First National Bank, the report attributes as the cause, "Injudiclous Banking," which is a criticism of judgment against the officers of the bank, rather than a suggestion of fraud or intentional wrong doing on their part.

13. August 4, 1915 The Tacoma Times Tacoma, WA

Article from The Tacoma Times, August 4, 1915

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WOMAN WINS $15,249 SUIT A decree, entitling Anna C. McCormick to recover $15,249.55 was issued yesterday by Judge Cushman in the federal district court in the case against A. R. Titlow, receiver for the United States National bank of Centralia.

14. January 21, 1916 Washington Standard Olympia, WA

Article from Washington Standard, January 21, 1916

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Will Not Appeal Bank Suit. F. P. McKinney, receiver of the defunct Olympia Bank & Trust company, stated this week that, because of the expense involved, he had decided not to appeal from the decision recently given by the federal district court at Tacoma, rejecting certain claims made by the receiver on assets of the failed United States National bank at Centralia. Stockholders of the local institution, who intervened in the receiver's suit, plan, however, to file a motion for rehearing in the district court.

15. March 31, 1916 Washington Standard Olympia, WA

Article from Washington Standard, March 31, 1916

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Big Tono Mill Operating. The big mill of the Wabash Lumber & Shingle company at Tono, which was shut down when the United States National bank at Centralia was closed in September, 1914, and was recently sold at receiver's sale, resumed operations this week, employing 60 men and turning out 60,000 feet of lumber a day. A second logging road is to be built to supply the mill with timber recently bought from the Washington Union Coal company.