22241. Olympia Bank & Trust Company (Olympia, WA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
September 1, 1914*
Location
Olympia, Washington (47.038, -122.901)

Metadata

Model
gpt-5-mini
Short Digest
13e3a999

Response Measures

None

Description

The bank was closed/failed in Aug–Sep 1914 and a receiver was appointed (receiver cited in Oct 1914). Articles attribute the failure to the smash of the Gilchrist banks in Centralia (distress of other local banks) and subsequent discovery/allegations of embezzlement. No article describes a depositor run or reopening; the institution remained in receivership and was treated as defunct.

Events (3)
1. September 1, 1914* Suspension
Cause
Local Banks
Cause Details
Forced to the wall by the smash/failure of the Gilchrist banks in Centralia, i.e., distress among other local banks.
Newspaper Excerpt
operated in this city last August and September until forced to the wall by the smash of the Gilchrist banks in Centralia
Source
newspapers
2. October 9, 1914 Other
Newspaper Excerpt
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 ...
Source
newspapers
3. October 9, 1914 Receivership
Newspaper Excerpt
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. ... which recently was closed, was arrested again Tuesday on a charge of embezzling ... 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.
Source
newspapers

Newspaper Articles (10)
1. October 9, 1914 Washington Standard Olympia, WA
Article from Washington Standard, October 9, 1914

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Article Text

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.

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

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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.

3. May 14, 1915 Washington Standard Olympia, WA
Article from Washington Standard, May 14, 1915

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Article Text

Receiver Pays 10 Per Cent Dividend. Depositors in the defunct Oylmpia Bank & Trust company, which operated in this city last August and September until forced to the wall by the smash of the Gilchrist banks in Centralia, received their first good news this week, six months after the failure of the institution, when Receiver F. P. McKinney mailed them checks for a 10 per cent dividend on their deposits. Authority to pay the dividend, which is 10 per cent on $48,372.04, was obtained from Superior Judge Wright Thursday morning by Receiver McKinney and his attorney, P. M. Troy. Sharing in the dividend are the bonding companies which repaid to the city and state the amount of money they had on deposit in the bank.

4. October 22, 1915 Washington Standard Olympia, WA
Article from Washington Standard, October 22, 1915

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Article Text

IN THE SUPERIOR COURT OF THE State of Washington, in and for the County of Thurston. State ex rel. W. V. Tanner. as Attorney General, Plaintiff, vs. Olympia Bank & Trust Company, a corporation, Defendant. No. Notice to Present Claims. Notice is hereby given. That the undersigned has been appointed receiver of the above named Olympia Bank & Trust Company, a corporation. and that he has duly qualified and is the regularly qualified and acting receiver thereof. Notice is further given, That the court has fixed the 1st day of December, 1915, as the time within which all parties having claims against the said Olympia Bank & Trust Company shall present the same. Now. therefore, Notice is hereby given that all claims against the said Olympia Bank & Trust Company be and they are hereby required to be presented to the undersigned personally. or at his place of business in the Olympia National Bank Building. corner of Fifth and Main streets, Olympia, Washington. or to his attorneys. Messrs. Troy & Sturdevant, all at Olympia. Washington. on or before the 1st day of December. 1915, or else the same will be forever barred. Witness my hand this 18th day of October, 1915. F. P. McKINNEY. Receiver of the Olympia Bank & Trust 10-4-7 Company.

5. October 29, 1915 Washington Standard Olympia, WA
Article from Washington Standard, October 29, 1915

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Article Text

IN THE SUPERIOR COURT OF THE State of Washington. in and for the County of Thurston. State ex rel. W. V. Tanner, as Attorney General. Plaintiff. VS. Olympia Bank & Trust Company, 8 corporation, Defendant. No. Notice to Present Claims. Notice is hereby given, That the undersigned has been appointed receiver of the above named Olympia Bank & Trust Company. a corporation. and that he has duly qualified and is the regularly qualified and acting receiver thereof. Notice is further given, That the court has fixed the 1st day of December. 1915, as the time within which all parties having claims against the said Olympia Bank & Trust Company shall present the same. Now. therefore. Notice is hereby given that all claims against the said Olympia Bank & Trust Company be and they are hereby required to be presented to the undersigned personally. or at his place of business in the Olympia National Bank Building. corner of Fifth and Main streets. Olympia, Washington. or to his attorneys. Messrs. Troy & Sturdevant. all at Olympia, Washington. on or before the 1st day of December. 1915. or else the same will be forever barred. Witness my hand this 18th day of October, 1915. F. P. McKINNEY. Receiver of the Olympia Bank & Trust 10-4-7 Company.

6. November 12, 1915 Washington Standard Olympia, WA
Article from Washington Standard, November 12, 1915

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Article Text

Receiver of the Olympia Bank & Trust 10-4-7 Company.

7. November 19, 1915 Washington Standard Olympia, WA
Article from Washington Standard, November 19, 1915

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Article Text

MNNT, n Receiver of the Olympia Bank & Trust 10-4-7 Company.

8. December 3, 1915 Washington Standard Olympia, WA
Article from Washington Standard, December 3, 1915

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Article Text

Receiver of the Olympia Bank & Trust Company. 10-4-7

9. January 21, 1916 Washington Standard Olympia, WA
Article from Washington Standard, January 21, 1916

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Article Text

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.

10. February 11, 1916 Washington Standard Olympia, WA
Article from Washington Standard, February 11, 1916

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Article Text

Stockholders Relieved of Blame. All stockholders of the defunct Olympia Bank & Trust company, except the organizer, W. Dean Hays, were absolved from fraud in the organization of that institution and any dealings between Hays and the United States National bank of Centralia, by an amended decision given this week by Federal Judge Cushman of Tacoma, in the case brought by Receiver F. P. McKinney in which the stockholders intervened. Among the local stockholders were C. S. Reinhart, C. Will Shaffer, Secretary of State I. M. Howell, W. T. Cavanaugh and others.