22260. Palouse State Bank (Palouse, WA)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: May 21, 1909
Location: Palouse, Washington (46.910, -117.076)

Metadata

Model: gpt-5-mini
Short Digest: 8c2221ee

Response Measures

None

Description

The Palouse State Bank closed its doors May 21, 1909 and was placed in the hands of a receiver. Reports attribute the failure to poor management and an apparent deficit (~$50,000). Multiple articles through 1909 describe receivership actions and liquidation/sale of assets; there is no description of a depositor run prior to suspension in the provided texts.

Events (4)

1. May 21, 1909 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank found about $50,000 'in the hole' on examination; failure attributed to poor management and insufficiency of assets to meet liabilities.
Newspaper Excerpt: Palouse State Bank, which closed its doors May 21.
Source: newspapers

2. May 24, 1909 Receivership

Newspaper Excerpt: the failure of the Palouse State bank, of Palouse, ... The bank is now in the hands of a receiver.
Source: newspapers

3. June 18, 1909 Other

Newspaper Excerpt: C. W. Waters has been appointed receiver for the Palouse State bank. Three receivers in eight days; C. W. Waters of Palouse appointed.
Source: newspapers

4. January 5, 1912 Other

Newspaper Excerpt: George C. Jewett ... received of the Palouse State bank, which was closed in May, 1909, offered for sale ... and realized $737 cash.
Source: newspapers

Newspaper Articles (11)

1. May 24, 1909 The Evening Statesman Walla Walla, WA

Article from The Evening Statesman, May 24, 1909

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TO SPEND FORTUNE MAKING LOSS GOOD. Deputy State Bank Examiner Will Pay Off Losses. SPOKANE, May 24.-"Yes, the failure of the Palouse State bank, of Palouse, will bankrupt me, but I have made it a rule of my life to pay every cent I owe, and I shall try to settle all indebtedness on the present catastrophe with the financial institution with which I was formerly connected." said Deputy State Bank Examiner H. M. Boone, 1102 Eleventh avenue, on his arrival home last night. He was formerlyerly a state senator from Whitman county. "I severed my connection with the bank early in March, but prior to that time, in January, I had made a deal with M. J. Hawkinson, formerly of a North Dakota bank, that he take my stock," said Mr. Boone. "He took over only a portion of the stock, so my loss on that will figure easily $20,000, besides the personal note I signed to the Old National bank of Spokane, amounting to $20,000. So my total loss will reach $40,000." The bank is now in the hands of a receiver. J. K. McCormack. president and manager of the Security State bank, of Palouse..

2. May 27, 1909 Daily Capital Journal Salem, OR

Article from Daily Capital Journal, May 27, 1909

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FIRED THE DEPUTY BANK EXAMINER [United Press Leased Wire.] San . rancisco, May 27.-Followinging a conference with Governor Hay, State Bank Examiner Mohundro today issued an order suspending exSenator Boone as deputy bank examiner pending an investigation into the affairs of the defunct Palouse State bank, of which Boone was president for a number of years. Boone sold his interests in January last to W. J. Hankinson, the vice president of the institution. In discussing Boone's suspension, Mr. Mohundro said: "Hankinson and the old national bank of Spokane, to which the Palouse bank was indebted, went to the superior court at Colfax and asked for the appointment of a temporary receiver without calling in my office or making the bank's condition known to us. "I found on examination that the bank was about $50,000 in the hole. It may be more, it may be less. "In my opinion, it is all due to poor management on the part of the bank officials prior to and during Boone's administration. Whether or not the suspension of Boone will be permanent I cannot at this time say. My examination was only cursory. What more probing will disclose I cannot say

3. June 10, 1909 The Newport Miner Newport, Old Town, WA

Article from The Newport Miner, June 10, 1909

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only North Takima-A new city is ing laid out in the Moree Vall nine miles from North Yakima. will be known as Moxee City, Coirille-At the June sale school and state land held here S urday. including also the sale timber, about $16,000 was realiz Montesano-At a test of but from various sections of the st made at Seattle, the product of Montesano Creamery showed points out of a possible 100. Hoquiam-Moclips has shipped large bone from the head of a wh to the Seattle fair for exhibiti The bone weighs one ton and quired four men with levers to 1 it. Spokane The new indictm against J. H. Schively, charging I jury in his testimony before grand jury, will stand, Judge W ster having overruled a motion quash the same. Aberdeen-It is estimated t nearly $3,000,000 will be spent Aberdeen this year in new buildin street improvements, railroads the commencement of a new wa system. Aberdeen-Because of the in ference of the millowners the m of Gray's Harbor may be kept clo until after the Fourth of July. I hinted the millowners are in hurry to consider terms from strikers. Seattle-A. K. Townsend, who vertised himself as an employer young women at lucrative salar to work as stenographers, has h self been provided with employm with the chain gang for 60 da having been convicted of vagrano Colfax-Superior Judge Canf has confirmed the appointment of E. McCornack, president of the curity State Bank, of Palouse, permanent receiver of the Palo State Bank, which closed its do May 21. Spokane-To close the deal the sale of the Crystal mining pr erty, located near the mouth of Spokane river, Captain John G1 principal stockholder of the e pany, has departed for Pa France, taking with him the de The amount involved is $400,000 North Yakima.Iva Hanson a year-old girl, died at her home this city from too violent exer at play. A week ago she had pla very violently, causing an inter disorder, for which an operation necessary. A hemorrhage follo and death resulted. e Olympia-The supreme court versed the verdict of the jury Snohomish county that awar Mary M. Campbell a verdict aga the Order of Washington, an in: d ance organization: She sued to lect $50 burial fees and $25 a mo for four years and judgment rendered in her favor. Aberdeen-Finding the rear of his automobile on fire while the road between Hoquiam and erdeen and no water near, Cha f Armstrong, observing a WO a washing at her home near the re side, ran to her side, grabbed up 8 tub, clothes and all, and with e contents put out the blaze. Walla Walla-According to w received here from Pasco, the ra e rise of the Snake and Colun rivers has already caused $15 e damages to the property of Pasco Power & Water Company threatens to completely wipe out company's $100,000 pumping p just completed a mile below P t on the Snake river. 3. North Yakima-One-half of teachers in the public schools e North Yakima have resigned or 1 y dropped from the faculty. The jority of the teachers who have a signed say it is due to the fact e they cannot work in harmony e the superintendent. The majo @ of the teachers from the outside cline to come back again, and n of the home teachers have given their positions. a Pasco-To start a disastrous a among frame buildings in this 1. and during the confusion hold 1, and rob the early morning risers 1apparently the plan of firebugs k kindled a flame at the rear of : cal restaurant Saturday

4. June 11, 1909 The Leavenworth Echo Leavenworth, WA

Article from The Leavenworth Echo, June 11, 1909

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WASHINGTON STATE NEWS OF THE WEEK IN BRIEF North Yakima-A new city is being laid out in the Moxee Valley, nine miles from North Yakima. It will be known as Moxee City. Colville-At the June sale of school and state land held here Saturday, including also the sale of timber, about $16,000 was realized. Montesano-At a test of butter from various sections of the state, made at Seattle, the product of the Montesano Creamery showed 95 points out of a possible 100. Hoquiam-Moclips has shipped a large bone from the head of a whale to the Seattle fair for exhibition. The bone weighs one ton and required four men with levers to load it. Spokane The new indictment against J. H. Schively, charging perjury in his testimony before the grand jury, will stand, Judge Webster having overruled a motion to quash the same. Aberdeen-It is estimated that nearly $3,000,000 will be spent in Aberdeen this year in new buildings, street improvements, railroads and the commencement of a new water system. Aberdeen-Because of the indifference of the millowners the mills of Gray's Harbor may be kept closed until after the Fourth of July. It is hinted the millowners are in no hurry to consider terms from the strikers. Seattle-A. K. Townsend, who advertised himself as an employer of young women at lucrative salaries, to work as stenographers, has himself been provided with employment with the chain gang for 60 days, having been convicted of vagrancy. Colfax-Superior Judge Canfield has confirmed the appointment of J. E. McCornack, president of the Security State Bank, of Palouse, as permanent receiver of the Palouse State Bank, which closed its doors May 21. Spokane-To close the deal for the sale of the Crystal mining property, located near the mouth of the Spokane river, Captain John Gray, principal stockholder of the company, has departed for Paris, France, taking with him the deeds. The amount involved is $400,000. North Yakima-Iva Hanson a 17year-old girl, died at her home in this city from too violent exercise at play. A week ago she had played very violently, causing an internal disorder, for which an operation was necessary. A hemorrhage followed and death resulted. Olympia-The supreme court reversed the verdict of the jury of Snohomish county that awarded Mary M. Campbell a verdict against the Order of Washington, an insurance organization. She sued to collect $50 burial fees and $25 a month for four years and judgment was rendered in her favor. Aberdeen-Finding the rear end of his automobile on fire while on the road between Hoquiam and Aberdeen and no water near, Charles Armstrong, observing a woman washing at her home near the roadside, ran to her side, grabbed up the tub, clothes and all, and with the contents put out the blaze. Walla Walla-According to word received here from Pasco, the rapid rise of the Snake and Columbia rivers has already caused $15,000 damages to the property of the Pasco Power & Water Company and threatens to completely wipe out the company's $100,000 pumping plant just completed a mile below Pasco on the Snake river. North Yakima-One-half of the teachers in the public schools of North Yakima have resigned or been dropped from the faculty. The majority of the teachers who have resigned say it is due to the fact that they cannot work in harmony with the superintendent. The majority of the teachers from the outside decline to come back again, and many of the home teachers have given up their positions. Pasco-To start a disastrous fire among frame buildings in this city and during the confusion hold up and rob the early morning risers was apparently the plan of firebugs who kindled a flame at the rear of a local restaurant Saturday morning, the fire spreading rapidly until an entire block of structures was razed. The total loss is estimated at $30,000. Three holdups were perpetrated during the excitement, the robber in one case being a woman. Seattle-At the urgent request of Senator Jones the Indian Office at

5. June 18, 1909 The Kendrick Gazette Kendrick, ID

Article from The Kendrick Gazette, June 18, 1909

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NORTHW EST NEWS ITEMS NOTES SELECTED FOR BUSY READERS. ABOUT PEOPLE AND EVENTS IN MONTANA, IDAHO, OREGON AND WASHINGTON. WASHINGTON STATE NEWS. The beautiful home of J. H. Turner, the pioneer wheat buyer at Ritzville, was destroyed by fire Saturday. A. G. Culver died recently at the soldiers' home at Orting. Mr. Culver was 93 years old and the oldest man in the home. He had been an inmate for nine years. Prior to that time he lived near Palouse for 20 years. French Ambassador Jusserand, accompanied by Mme. Jusserand and party, are in Seattle to visit the AlaskaYukon-Pacific exposition. Hosea Hillyer of Spokane, who has been employed on the Western Pacific as a bridge carpenter, has disappeared and it seems certain that he has been drowned in the Feather river, 20 miles from Oroville. Falling in front of a Northern Pacifis switch engine in the yards at Spokane Sunday, Michael Papovich, an Austrian, was run over and fatally injured. The citizens of Cheney have donated $500 for an "old settlers' pienic,' to be held there July 3. Colonel T. M. Fisher, federal immigration inspector, fell to the sidewalk and expired in 20 minutes of heart failure at Walla Walla Saturday. The prospects for a big crop of wheat have not been better in many years. The enrollment of the summer session at the state normal school at Cheney has reached 149, which is 83 more than the previous summer. The Sunnyside postoffice now occupies its new quarters in the Harrison brick block. The pioneers of western Klickitat county met in White Salmon Saturday to eelebrate the 18th anniversary of their organization. C. W. Waters has been appointed receiver for the Palouse State bank. Applications for railroad rights of way were filed in the state land office by the Northern Pacific covering parts of four sections in Grant eounty. Jesse Jones of Tacoma was reappointed state railroad commissioner by Governor Hay. o The state college has secured the cooperation of the Northern Pacific railway company for the purpose of condueting a mammoth farm demonstration train over the lines of that company in western Washington, starting at Vancouver June 21, and ending at Puyallup June 26. I Charles W. Mohr of Spokane was elected president of the Inland Empire Threshermen's association for the fourth consecutive term at the recent b meeting of that organization. k The quarantine, which has been on a for weeks, preventing children from attending Sunday schools, theaters and n parks, and older people from going to I dances, has been lifted at Spokane, and d all restrictions removed by order of the n board of health. I A resolution to divide Skagit county i into three judicial districts has been passed by the board of county commissioners at Mount Vernon. At Seattle recently H. F. Archibold I shot himself through the heart, and H. H. Bean of Chicago eut his throat.

6. June 18, 1909 The Leavenworth Echo Leavenworth, WA

Article from The Leavenworth Echo, June 18, 1909

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Three Receivers in Eight Days. Spokane-Judge Canfield, of Colfax has soothed the troubled spirits of creditors of the defunct Palouse State Bank by the appointment of the third receiver in eight days. He is C. W. Waters of Palouse. Creditors have opposed other men named because of personal connections and have succeeded in removing them.

7. June 19, 1909 Bonners Ferry Herald Bonners Ferry, ID

Article from Bonners Ferry Herald, June 19, 1909

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NORTHWEST STATES ITEMS OF IDAHO, MONTANA, WASHINGTON AND OREGON. A Few Interesting Items Gathered From Our Exchanges of the Surrounding Country-Numerous Accidents and Personal Events Take Place-Spring Outlook Is Good. WASHINGTON STATE NEWS. The beautiful home of J. H. Turner, the pioneer wheat buyer at Ritzville, was destroyed by fire Saturday. A. G. Culver died recently at the soldiers' home at Orting. Mr. Culver was 93 years old and the oldest man in the home. He had been an inmate for nine years. Prior to that time he lived near Palouse for 20 years. French Ambassador Jusserand, accompanied by Mme. Jusserand and party, are in Seattle to visit the AlaskaYukon-Pacific exposition. Hosea Hillyer of Spokane, who has been employed on the Western Pacific as a bridge carpenter, has disappeared and it seems certain that he has been drowned in the Feather river, 20 miles from Oroville. Falling in front of a Northern Pacifis switch engine in the yards at Spokane Sunday, Michael Papovich, an Austrian, was run over and fatally injured. The citizens of Cheney have donated $500 for an "old settlers' picnic,' to be held there July 3. Colonel T. M. Fisher, federal immigration inspector, fell to the sidewalk and expired in 20 minutes of heart failure at Walla Walla Saturday. The prospects for a big crop of wheat have not been better in many years. a The enrollment of the summer session r at the state normal school at Cheney has reached 149, which is 83 more than d the previous summer. S The Sunnyside postoffice now occuS pies its new quarters in the Harrison brick block. S The pioneers of western Klickitat e county met in White Salmon Saturday to celebrate the 18th anniversary of their organization. C. W. Waters has been appointed receiver for the Palouse State bank. Applications for railroad rights of way were filed in the state land office e by the Northern Pacific covering parts of four sections in Grant county. g Jesse Jones of Tacoma was reapr pointed state railroad commissioner by Governor Hay. The state college has secured the cod operation of the Northern Pacific rail10 way company for the purpose of conf ducting a mammoth farm demonstration train over the lines of that company in western Washington, starting e at Vancouver June 21, and ending at Puyallup June 26. Charles W. Mohr of Spokane was elected president of the Inland Empire a Threshermen's association for the e fourth consecutive term at the recent meeting of that organization. y The quarantine, which has been on n for weeks, preventing children from attending Sunday schools, theaters and parks, and older people from going to dances, has been lifted at Spokane, and E all restrictions removed by order of the board of health. a A resolution to divide Skagit county into three judicial districts has been passed by the board of county comor missioners at Mount Vernon. At Seattle recently H. F. Arehibold

8. October 29, 1909 The Colfax Gazette Colfax, WA

Article from The Colfax Gazette, October 29, 1909

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Bank of Endicott, Endicott, 250 shares, valuation $30,675. Lamont State Bank of Lamont, 100 sharee, valuation $10,000 Comegys. Hanford & Miller Bank of Thornton, 300 shares, valuation $7500. St. John State Bank of St. John, 250 shares, valuation $27,623. First Bank of La Croese, La Croese, 181 shares, valuation $19,232. Albion State Bank of Albion, 150 shares, valuation $16,673. Pullman State Bank of Pullman, 375 shares, valuation $46,249. Farmers State Bank of Johnson, 100 shares, valuation $10,579. Colton State Bank of Colton, 150 shares, valuation $16,000. Bank of Winona, 150 shares, valuation $16,009 Farmers State Bank of Uuiontown, 100 shares, valuation $10,118 Fidelity State Bank of Uniontown, 100 shares, valuation $10,264 First State Bank of Uniontown, 250 shares, valuation $44,535. Security State Bank of Palouse, 600 shares, valuation $63,000. First National Bank of Pullman, 500 shares, valuation $64,098. Citizens State Bank of Tekoa, 250 shares, valuation $25,875. Colfax State Bank, Colfax, 600 shares, valuation $50,696 The Bank of Farmington, Farmington, 250 shares, valuation $25,000. Palouse State Bank of Palouse is defunet, going into the hands of a receiver several months ago. Its place was taken by the National Bank of Palouse, of which DO record is given. The defunct bank had 500 shares, valuation $51,460. Farmers and Merchants State Bank of Malden is incorporated for $20,000 ; divided into 200 shares at $100 per share. Bank of Eiberton is a private bank run by A R. Metz. It is unincorporated an I DO stock issued.

9. November 19, 1909 The Colfax Gazette Colfax, WA

Article from The Colfax Gazette, November 19, 1909

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BANK HOLDERS MUST PAY. Aftermath of Palouse State Bank-Judge Canfield Issues Order. The tangle of the defunet Palouse State Bank will probably never be fully untangled, but a ray of light was centered on the institution last Friday when Judge Canfield issued an order directing C. W. Waters. receiver of the bank, to make a demand upon the stockholders for the amount of their liability to satiefy the claims of creditors. To use the exact words of the court : The court finds that the liabilities of said bank greatly exceed the assets thereof, and that in order to pay the liabilities thereof it is necessary that each stockholder of said bank liable therefor pay in cash to the said receiver the amount of his stock therein at the par value thereof, in addition to the amount invested in said shares. It is therefore ordered and decreed that each stockholder of said bank liable therefor shall pay to the receiver thereof, in cash, the amount of his stock in said bank at its par value, in addition to the amount invested therein; and the said receiver is hereby directed to collect from said stockholders the amount of their liability 80 fixed and the said receiver is hereby authorized and empowered to enforce the collection of said amount in such manner as he may deem proper, consistent with the laws of this state. An Honest Company. The Indiana and Ohio Live Stock Insurance Co. $400,000 00 in assets. In business since 1886. G. W. Larue & Co, Local Agente.

10. June 10, 1910 The Colfax Gazette Colfax, WA

Article from The Colfax Gazette, June 10, 1910

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day in the Boone trial in the taking of A8 The Gazette went to prees too to handle that evidence. early day's completing proceedings is herewith given as the chain of evidence leading up to conviction by the verdict of the jury. End of Testimony. Court opened Thursday with Booneon the witness stand and crose-examination by defense was concluded. R. C. J. W. W. F. W. Arrasmith, F. Chalenor, Hickman, McCroekey, A. C. S. McClure were character for the defense. Smith witnesses and H. Henry Nagel, witJ.J. Muir and W.T. Anderson were nesses called by the defense and testified 88 to the value of Boone's real estate, deeds to which Boone has placed in escrow for the Palouse State Bank and to the upon to of the to be him delivered (Boone) bank 40,000 shares return Co.'s of Age & Edison the stock which the stock, Copper worthless, Mining prosecution and alleges to be practically which. at the time of Boone's severance with the bank, together with Boone's own bank stock appears to be the only assets the bank had for the $20,000 paid the Exchange National Bank for the capital stock increase. An important point in this case and which the one prosecution contends fact is that in itself incriminating, is the according to own Boone did, his stock in testi- the mony, place his own bank and as an a hole caused by up bank as security the payment asset to and fill return held 88 an asset. The court has held with the state in regard to this, but the ruling does not directly concern the Frime in the alit is important though charged information, concerning the rights of 8 banking institution. George M. Swartwood, former officer and director of the Palouse State Bank, was called 88 a witness for the defense. He stated that be owed the bank about and that Boone came for Swartwood got $17,000, money. the to Copper him Age & Edison Mining Co. stock, 40,000 shares, held by W. E Schirmer in eecrow, to Boone and there no agreeof gave same it $2000, received being for theuse He ment to the time of the loan. stated that the mining stock had been placed with Schirmer 88 property of release it from Schirmer the value to assigned stock his to liabilities. bearer upon call, and it fell into the hands of Boone. And 80 the account of Swartwood and the bank stands, he owing the bank $17,000 and the bank having the stock. A.S Parker, A. R. Patten and H. C. Johnson testified for defendant, simply and corroborating the testior of the mony reiterating parts testimony of H. M. Boone. George N. Lamphere, Sr., and George N. Lamphere, Jr., testified as to the value of Boone's home place in Palouse, the same now being held in escrow for benefit of the bank. Defense rested its case. At the night session in rebuttal, C. H. Oderlin and R. a. Hill denied Boone's testimony wherehow he stated that they agreed to take up of the $20,000 parts additional knew anything stock, and denied that they the different of the $20,000 paid Bank such as about place securities accomodation the taking Exchange the stock, etc., notes, National mining until the bank They went into the hands of a receiver. denied the statement of Boone in this that they, 88 directors, agreed with him to pay the $20,000 loan out of the bank. Verdict of Jury. Friday was devoted exclusively to the charge of Judge Canfield to the jury and the of counsel, the argument making argument closing E. K. for Hanna the prosecution Saturday morning. The case went to the jury at 10:30 and 1 m. they reported that they had upon a verdict. ood agreed at p. taken, underst the last that three ballots were being for conviction. It was apparent that Boone expected a of verread he was a dict verdict was acquittal. sitting When in the chair inside the railing. As the last words were pronounced his hands face blanched dropped list- and leasly by his side, his he apparently to muttered, News bimself, of "Is it possible it is guilty the everdict spread like wild fire and was the topic of conversation. court fixed Boone's bond at $10,000 motion for new The pending This trial, given which with will be heard later. was S. J. Boone and wife, J. J. Muir and

11. January 5, 1912 The San Juan Islander Friday Harbor, WA

Article from The San Juan Islander, January 5, 1912

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SELLS PALOUSE BANK PAPER. George Jewett Gets $737 for Stockholders of Institution. Palouse - George C. Jewett, received of the Palouse State bank, which was closed in May, 1909, offered for sale at public auction all the stocks, bonds, promissory notes and other securities, and realized $737 cash. The so-called Swartwood paper, amounting, with accrued interest, to $29,140, and secured by $16,000 of the Palouse Clay Pottery company's stock, was offered, but not sold. The receiver put the price of $500 upon it, and was offered only $200. One share of Palouse Creamery stock sold for $33. One hundred and seven shares of Palouse Athletic association stock, face value of $5 a share, sold for $325. A large batch of promissory notes, all past maturity, from two to three years, sold for trifling amounts.