22297. Broadway State Bank (Seattle, WA)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 1, 1917*
Location: Seattle, Washington (47.606, -122.332)

Metadata

Model: gpt-5-mini
Short Digest: 06962824

Response Measures

None

Description

The Broadway State Bank closed earlier in January 1917 (articles dated Jan 30, 1917 refer to it as having failed earlier that month). Its closing precipitated runs on other Seattle banks (notably the Northern Bank & Trust). Contemporary reporting attributes the Broadway failure to bad loans and questionable management (loans to German/Issaquah coal interests and charges against organizer W. Phillips, later revelations of falsified accounts). The bank is reported closed and not reopened in these items, so classified as suspension leading to permanent closure. Exact closing day not given in these excerpts; month inferred from surrounding articles.

Events (1)

1. January 1, 1917* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Closed after bad loans and questionable management — loans to Issaquah/foreign (German) interests and alleged falsified accounts/poor loan recoveries (organizer W. Phillips charged). Closure precipitated runs on other banks (Northern Bank & Trust).
Newspaper Excerpt: The failure of the Broadway State bank earlier this month.
Source: newspapers

Newspaper Articles (10)

1. January 30, 1917 The Seward Gateway Seward, AK

Article from The Seward Gateway, January 30, 1917

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SEATTLE, Tuesday. - Following a run of several days on Northern Bank and Trust company, W. L. ColI er closed its doors this morning by orders of the state bank examiner. The company has deposits of over $1,500,000. Many Alaskans were caught in the failure through their aquaintance with Collier, a former sourdough. The run which crushed the trust company and bank followed the failure of the Broadway State bank, with which it had been allied. Loans which resulted in the crash are said to have been made to the Isiaquah Superior Coal mining company, a wild cat concern promoted by von Alvensaben, a German, whose extensive interests in British Columbia coal holdings were confiscated by the Dominion of aCnada at the beginning of the war. These loans amounted to several hundred thousand dollars. Collier had a rather remarkable career, as he was merely a clerk when he went to Alaska and when he returned he blossomed out into a full fledged banker. The last bank statement issued showed the Northern Bank and Trust to have deposits of $1,679,619.24, with cash and exchange on hand amounting to only $268.704.72. From local sources it has been learned that the bank had a disagreement with other financial institutions in Seattle recently which resulted in a new clearing house being organized from which it was excluded. So far as known no Seward business establishment had any financial connection with this bank, but it is possible that some Alaskans here were depositors as one local man had a deposit in the Broadway bank which closed last week.

2. January 30, 1917 The Butte Daily Post Butte, MT

Article from The Butte Daily Post, January 30, 1917

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SEATTLE TRUST COMPANY FAILS TO OPEN DOORS Concern is Refused Aid by the Clearing House and the Crash Follows. Seattle, Jan. 30.-The Northern Bank and Trust company, at Fourth avenue and Pike street, did not open for business this morning, and a notice posted on the door said that the institution was in the hands of the state bank examiner. William B. Collier is president of the bank and Cleveland B. Sandefer cashier. The clearing house met last Sunday and again last night to consider the condition of the Northern Bank and Trust company, and decided not to assist the bank, which had requested aid. Large withdrawals of deposits from the Northern Bank and Trust company are said to have followed the failure of the Broadway State bank two weeks ago. Concerning the suspension of the Northern Bank and Trust company, the executive committee of the clear-

3. January 30, 1917 The Seattle Star Seattle, WA

Article from The Seattle Star, January 30, 1917

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Woman Accidentally Kills 4 Sons and Grandson CLEARING HOUSE Northern Depositors Stand in Snow STATEMENT IS USES ARSENIC IN STATE LOCKS IT ISSUED ON BANK Concerning the suspension of AS HALF MILLION the Northern Bank & Trust PANCAKES; DEATH company, the executive committee of the Clearing House Association of Seattle issued the following statement this morning After an examination into the affairs of the bank, such LOSS IS FOUND FOLLOWS QUICKLY it has been possible to make, the executive committee of the Clearing House associaDANFORTH, III., Jan. 30.-Mrs. O. J. Meints, tion concluded that it would be better for the State Bank Exwife of a farmer living west of here, killed her four sons First Bank Failure aminer's department to liquiand her grandson by mistaking arsenic for pancake date the bank rather than for flour. the Clearing House association to take it over. in Twenty-five Years In the farm house today are the bodies of Theo"This was partly because of the fact that certain legal comdore, Irvin, Mino and Fred Meints, sons, and Clarence The failure of the Broadway State bank and its plications appeared, and also Meints, grandson, son of Sebo Meints. because of the unsettled status ally, the Northern Bank and Trust Co. is the first in of one of the large interests Discovering that her supply of pancake flour was 25 years of Seattle's history. This is a remarkble recappearing in the list of the ord, and speaks well for the solidity of Seattle's banks. exhausted while she was preparing breakfast, Mrs. bank's assets namely the The failure of the Northern Bank and Trust Co. was coal mining properties at Issa. meints returned to the pantry and by mistake secured quah. caused solely by wretched management. The other a can of arsenic. The bank, having foreclosed bankers of the city did all that was possible to save Her husband did not partake of Theodore died last night and on first mortgage for a conMino. the last, died today and cakes, poisoned the Northern bank, after learning of its difficulties. siderable sum against the propthe exception of Clarence, Meints, discovering they were erty formerly controlled by However, they found that its loans were in such shape discovgrandson. who was 11. all the Her ate herself. none Alvo Von Albensleben at Issathat it would be unwise to try to salvage it. with adults. were Together all dead as too however. came late, quah, was unable to realize, sons and grandson had eaten their father, they worked the large owing to the extension of the Fred and Two family farm. The mother is grief of them, heartily. period of redemption by the became ill shortly before stricken. and physicians fear the With a loss of $500,000 to the depositor: court and other complications. noon died yesterday. Irvin shock may prove fatal. Had this not occurred. the dif. the Northern Bank & Trust Co., Pike st. an ficulties of the bank would have been greatly lessened. Westlake ave., failed to open at 10 a. m "The situation with respect Tuesday. to Unking of BAPICS of the INQUEST TO TELL Broadway State bank and the The assets are $1,100,000, while the li Northern Bank & Trust company, fol'owing the suspension bilities are $1,600,000, state bank examiner of the former bank, caused HOW 4 CHILDREN estimate. slow but steady loss of deposits in the Northern Bank & Trust Up to the close of banking hours Mor company. culminating in its CROOKED BUSINESS? DIED AT AUBURN The suspension. clearing day, the bank continued, as usual, to accep house committee believes that deposits. An advertisement was also carrie the situation is now thoroly conference The Inquest will be held in the Following cleared undertaking parlors of George between Deputy Tuesday The Northern Bank & Trust Co., which failed today. pernetratin Monday papers by the bank, guaranteein

4. January 30, 1917 The Seattle Star Seattle, WA

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gathering before the bank at 9:45 m. They found a notice had been posted on the door: "Bank closed: in the Hands of the Bank Examiner." Their All in Bank In the crowd were scores of de+ positors. Several of them were women, who declared all they had was in the bank. The men were of the working class. The bank was both a commercial and a savings institution, about $500,000 of the $1,600,000 deposits being in savings accounts, Run on the Bank The immediate cause of the bank's failure was a run on it which followed the closing up of the Broadway State bank earlier this month. The Northern Bank and Trust Co. did the clearing house business for the Broadway State bank, the latter not being a member of the Clearing House association. This connection had its influence, and immediately after the Broadway bank closed its doors. depositors began withdrawing their money from the Northern. It is claimed that the bank's chief difficulty arose out of a loan made to Baron Alvo Von Sleven, who is said to have handled the German emperór's investments, both in this country and in Canada. The baron made a large initial investment in the Issaquah Coal Co., taking over the entire property. A mortgage was given by him on it, and a loan secured from the Northern bank. The war came on, and the German interests were unable to take up the mortgage, and the bank, while becoming owner of the mine, was unable to convert it into liquid assets. The Northern Bank & Trust Co. has one of the best locations in the city, it is claimed, and another bank has already offered $75,000 for its lease. Both the Northern Bank & Trust Co. and the Broadway State bank, which failed in the same month, were organized a few years ago by W. Phillips, who is charged with making some of the loans that eventually forced the closing of the banks. Phillips is now, in New York city, The officers of the bank are: W. L. Collier, president; Gerald Frink, vice president: W. G. Hall, vice president; C. B. Sandefer, cashier

5. January 30, 1917 Rogue River Courier Grants Pass, OR

Article from Rogue River Courier, January 30, 1917

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RUN ON BANK IS CAUSE OF FAILURE Seattle, Jan. 30.-The Northern Bank and Trust company, at Pike street and West Lake avenue, failed to open its doors at 10 o'clock this morning. The bank's liabilities are $1,600,000; assets, $1,100,000. The failure of the bank was anticipated following an examination of its affairs by the state bank examiner Monday night. The Northern Bank and Trust company did the clearing house business for the Broadway State bank, and when the latter failed recently, a run was practically started on the Northern bank. The withdrawals were steady, and Monday night the bank examiner decided to close the doors. The cause of the failure is said to be slow return on loans, some made previous to the European war, to German interests. Both the Northern Bank and Trust company and the Broadway State bank were organized several years ago by W. Phillips, who is charged with making loans that eventually forced the closing of the banks. Phillips is in New York City at present. The Northern bank has one of the best locations in the city. It is announced another bank already has offered $75,000 for its lease.

6. January 30, 1917 The Tacoma Times Tacoma, WA

Article from The Tacoma Times, January 30, 1917

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SEATTLE BANK CLOSES DOORS (United Press Leased Wire.) SEATTLE, Jan. 30-The Northern Bank & Trust Co., at Pike st. and Westlake avenue, failed to open its doors at 10 o'clock this morning. The bank's liabilities are $1,600,000; assets, $1,100,000. The failure of the bank was anticipated following an examination of the affairs of the concern by the state bank examiner, Monday night. The Northern Bank & Trust Co. did the clearing-house business for the Broadway State Bank, and when the latter failed recently a run was practically started on the Northern bank. The withdrawals were steady, and Monday night the bank examiner decided to close the doors. The cause of the failure is said to be slow returns on loans, some made previous to the European war, to German interests. Both the Northern Bank & Trust Co. and the Broadway State bank were organized several years ago by W. Phillips, who is charged with making loans that eventually forced the closing of the banks. Phillips, for a time in Tacoma, is in New York city at present.

7. January 30, 1917 Daily Capital Journal Salem, OR

Article from Daily Capital Journal, January 30, 1917

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Seattle Bank Failure Due to German Loans Scattle, Wash., Jan. 30.-The Northern Bank and Trust company, at Pike street and Westlake avenue, failed to open its doors at 10 o'előck this morn ing. The bank's liabilities are $1,600,000: assets $1,100,000. The failure of the bank was anticipated following an examination of the affairs of the concern by the state bank examiner Monday night. The Northern Bank and Trust company did the clearing house business for the Broadway State Bank, and when the latter failed recently, a run was practically started on the Northern bank. The withdrawals were steady, and Monday night the bank examiner decided to close the doors. The cause of the failure is said to be a slow return on loans, some made previous to the European war, to German interests. Both the Northern bank and Trust company, and the Broadway State bank were organized several years ago by W. Phillips who is charged with making loans that eventually forced the closing of the banks. Phillips is in New York city at present. The Northern Bank and Trust company has one of the best locations in the city. It is announced another bank has already offered $75,000 for its lease.

8. January 31, 1917 The Seward Gateway Seward, AK

Article from The Seward Gateway, January 31, 1917

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BANK RUNS PECULIAR There is great mystery about a bank run, and the flock at Seattle yesterday will provide much material for the psychologists. Runs start without rhyme or reason SO far as finance is concerned. The very foundation of a successful banking business makes the banker vulnerable to a run of any length, for to make a success of the business he has to have the money in his care out at work. The banker pays from three to four percent on deposits and loans the money at higher rates. Actual cash to transact business is kept on hand which amounts to from 15 to 50 percent of the liabilities of the bank, depending upon the banker. Of course, some banks keep more and now and then a bank which does a very small busiess will save less. With this situation the banker with 30 percent of his cash on hand would have to close his doors if 40 percent of his depositors wanted their money quick. The bank might be perfectly solvent but the money is out at work and it can't be called in and shelled out over noght, to suit the clamor of skittish depositors. New York has been the scene of some of the most remarkable runs in history, caused by the most trivail OCcurrences. The least possible excitement in a bank in a large city is liable to cause a run. The capture of a pickpocket or sneak thief in a bank entailing a struggle, or a loud argument by some depositor is sufficient. In fact any occurrence from which the rumor might start that "there's a run on that bank" is liable to start a run. To guard against this the banks take every precaution, officers have strict orders to let the suspect leave the bank before arresting him, and the bank officer's principal effort is to prevent excitement of any kind. The closing of the Broadway bank at Seattle caused a rur on the Northern Bank and Trust company, which had known financial relations with the former institution. This is easily explainable. But the run on the People's Savings bank had no cause except fear on the part of the depositors, regardless of fact. Runs were noted on other state banks, but the detailed account will probably show that banks weaker financially than the People's Savings, which is one of the strong banks of Seattie, escaped without the loss of an account. After the excitement is over and the stress of the moment is passed it is not an unusual sight to see those who drew their money out in a hurry, putting it back in the same bank. In fact it has been noted many times that depositors have drawn their money and immediately redeposited it in the same bank, giving as a reason that they "just wanted to see if the cash was there."

9. February 3, 1917 Iditarod Pioneer Iditarod, AK

Article from Iditarod Pioneer, February 3, 1917

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NORTHERNERS CONCERNED IN SEATTLE BANK FAILURE SEATTLE, Jan. 31.-The Northern Bank & Trust Company, having $1,500,000 deposits, was closed by the state bank examiner yesterday morning. A run was commenced on the institution after the failure of the Broadway State Bank, with which it was once allied. A large number of Alaskans were caught in the bank failure through their acquaintance with W. L. Collier, its president, in the North. Collier, who was merely a clerk, went to Alaska and upon his return blossomed out into a full-fledged banker. Loans of several hundred thousand dollars are said to have been made to the Issaquah-Superior Coal Mining Company, a wildcat concern promoted by Von Alvansade, whose extensive British coal and lumber holdings were confiscated at the beginning of the war. Assistance Offered Other Banks Up to 1:30 p. m. today offers of cash assistance tendered to Seattle banks by outside institutions in case of need totaled several hundred million dollars. The Fremont State Bank, a Remsberg & Dixon property, closed its doors this morning, and the GermanAmerican Bank, upon which there was a run all day yesterday, failed to ope nthis morning. There were runs on all the rest of the Seattle banks this morning, the most persistent being on the savings institutions. The clearing house has given notice that all solvent banks, whether members or not, will be assisted. Federal Reserve Bank Meets Crisis SAN FRANCISCO. Jan. 31.-Sixty-eight million dollars was offered today by the federal reserve bank to the Seattle banks in case they needed it. No Other Banks in Danger SEATTLE, Feb. 1.--The clearing house guarantee has had the effect of stopping all runs save that on the Scandinavian-American Bank, and withdrawals from that institution are not nearly so great as they were yesterday. The clearing house announced this morning that it will "stand behind every bank open for business in Seattle today." Which means that there will not be another closing, regardless of runs.

10. March 24, 1917 The Nome Daily Nugget Nome, AK

Article from The Nome Daily Nugget, March 24, 1917

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FORMER NOMEITESEATTLE BANK PRES. GOES PENITENTIARY on some of the Seattle banks. The Special to the Nugget. March SEATTLE, Broadway bank was the first to be 21 - Charged hit; next came the Northern Bank with falsifying the accounts of the and Trust Company and a few days o:hern Bank and Trust Company of which he was preside W. L later the German-American bank cclosed its doors, but s-from advices Collier pleaded guilty and was senreceived here-solvent. tenced to from one to ten years in A later wire received here today is penictnatary The state bank examto the effect that the sentence of the iners found that Collier Wis short in court is to be suspended as Collier his accounts over $30,000. has agreed to dig up the money to Will Collier is well known here cover his speculations. Also owing to where he was in the employ of the the fact that the further affairs of that Miners and Merchants bank for two summers. He has a host of friends institution cannot be straightened out both here and in Seattle all of whom without his adviceand explanation. It is estimated here that the bank will were thunderstruck at the announcement that he had falsified the acpay out from fifty to seventy per counts of the bank. cent of its deposits, which amounted A few weeks ago a run was made to over one and a half million dollars.