22299. Commercial National Bank (Seattle, WA)

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 4397
Charter Number: 4397
Start Date: November 22, 1894
Location: Seattle, Washington (47.606, -122.332)

Metadata

Model: gpt-5-mini
Short Digest: f45e28e7

Response Measures

None

Description

The Commercial National Bank of Seattle went into voluntary liquidation / suspended in November 1894 amid allegations of fraud and looting by its president H. W. Wheeler. Articles describe transfer of business to Seattle National and later long-term liquidation and receivership/claims; no article describes a depositor run prior to suspension, so this is classified as a suspension leading to permanent closure.

Events (4)

1. August 15, 1890 Chartered

Source: historical_nic

2. November 22, 1894 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Voluntary liquidation/suspension following alleged fraud, looting and insolvency tied to H. W. Wheeler's management and worthless substituted notes and bad loans; directors alleged deception caused suspension.
Newspaper Excerpt: On the same day the Commercial National bank, of Seattle, went into voluntary liquidation.
Source: newspapers

3. December 29, 1894 Voluntary Liquidation

Source: historical_nic

4. * Receivership

Newspaper Excerpt: Charles H. Baker, receiver of the Commercial National bank; appointment of a receiver is discussed in several articles and suits seek appointment of receivers and agent actions for the defunct bank; references to Lester W. David appointed receiver in litigation filings and later agents acting for the bank in liquidation actions are present in the record. Examples: the Commercial National bank, of Seattle, went into voluntary liquidation. Charles H. Baker, receiver of the Commercial National bank whereby Lester W. David was appointed receiver. (articles 2, 7, 5, 8, 10-12).
Source: newspapers

Newspaper Articles (12)

1. August 14, 1894 The Seattle Post-Intelligencer Seattle, WA

Article from The Seattle Post-Intelligencer, August 14, 1894

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Alleged Attempt to Defraud. The Commercial National bank commenced suit against V. Barker, P. T. Brunsing, the Star Manufacturing Company and the Seattle Pickle and Vinegar Works to recover $165 on a sixty-day promisory note given by Baker and Brunsing December 26, 1893, and indorsed by the Star Manufacturing Company, which last March paid $25 on account. Afterwards the Seattle Pickle and Vinegar ,Works, which absorbed the Star Manufacturing Company, assumed the debt. The company is said to be insolvent and fraud is alleged in the transfer of the property from Barker and Brunsing and the Star Manufacturing Company to the vinegar works. Judgment is asked for $165 and the appointment of a receiver.

2. November 29, 1894 The Yakima Herald Yakima, WA

Article from The Yakima Herald, November 29, 1894

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STATE AND GENERAL NEWS. The Most Interesting Happenings of the World Bolled Down for "Herald" Readers. Sheriff Anthony Meade, of Kittitas county is suffering from paralysis of his left side. A. J. Splawn is feeding about 800 head of cattle, purchased in Okanogan county, near Ellensburg. The only son of Governor Pennoyer, of Oregon, died at a Massachusetts college on Saturday last. A warrant for $10,770,000 has been drawn on the U.S. treasury for pensions to be paid December 4. Kittitas county will, on December 8, vote on the question of validating county warrants issued in excess of law. Bob Fitzsimmons who killed his sparring partner Con Riordan, in a boxing tournament last week, has been exonerated from all blame by a coroner's jury. Port Arthur, the stronghold of the Chinese was captured on the 21st inst. Nothing can now stay the victorious Japanese, as but a weak resistance can be made at Pekin and the Chinese are panic stricken. The Walla Walla Statesman claims that the remains of Noah's ark have been found on Crab creek mountain, this state, and in the lapse of ages the name Arrarat has been changed to Crab. The so called ark is a petrified raft of logs, with bolts almost eaten away with rust. A mass"meeting of Eilensburg citizens has resulted in the selection of the following ticket to be voted upon December 4: Mayor, John H. Smithson; marshal, A. O. Wishard; clerk, W. J. Jenkins; attorney, W. J. Welsh, councilmen, William Freyberger. Dr. J.C. McCauley, W. D. Carter]and F. D. Schnebly. The Citizens National bank, of Spokans, suspended on the 22nd inst. The assets are $425,000 and the liabilities $240,000. This brought about the assignment of E. B. Hyde, the president, who was the owner,of the Hyde block and a brother of Congressman-elect Sam Hyde. On the same day the Commercial National bank, of Seattle, went into voluntary liquidation. The following day the Browne National bank, of Spokane, suspended with liabilities placed at $79,900 and assets $211,650. The bank has lost $300,000 of deposits since June, 1893. J. J. Brown, the owner of the Auditorium, the Spokane Chronicle and a reputed millionaire, was the president and chief stockholder of the bank. He was in Portland at the time of the suspension trying to raise money to tide over the embarrassment.

3. January 1, 1895 The Seattle Post-Intelligencer Seattle, WA

Article from The Seattle Post-Intelligencer, January 1, 1895

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moment refused or postpond the pay. ment of its obligations In gold coin on demand. Nor was It found necessary to resort to any of the expedients adopted by banks in many Eastern cities to prevent the withdrawal of gold, such as the use of clearing house certificates, time checks and the like. Two of the smaller banks were successfully liquidated by the clearing house association and one of the national banks has recently resolved to go into liquidation for the purpose of consolidating with another. The banks which went out of business were the Puget Sound Savings bank, the successor of the King County bank, whose stock was held principally by Eastern capitalists, and the North End bank. The Commercial National bank has recently transferred 1ts business to the Seattle National bank. The obligations of these banks are being paid in full as rapidly as demanded and no one will lose a dollar by their liquidation. In addition to this two of the smaller savings banks have been placed in the hands of receivers. One of these had deposits of only $100,000, which was loaned on real estate security. A dividend of 10 per cent. has already been paid and the receiver reports that every claim will ultimately be paid in full. The

4. March 27, 1895 The Seattle Post-Intelligencer Seattle, WA

Article from The Seattle Post-Intelligencer, March 27, 1895

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A SERIOUS CHARGE. J.P. Gleason's Suit Against H. W. Wheeler and Others. CLAIMS HE WAS DEFRAUDED. Mrs. Clapsadle Renews Her Claim for Breach of Promise-Alleged Evasion of Execution. In a suit begun by Deputy Collector of Internal Revenue James P. Gleason against H. W. Wheler and the Pacific Mortgage Company in the superior court yesterday to get back $9,500 worth of promissory notes and valuable Seattle property. Gleason charges Wheeler with having looted the Commercial National bank of large sums of money. Gleason states in his complaint that Wheeler, through false and fraudulent representations. sold to him on August 24, 1894, one hundred shares of the capital stock of the Commercial National bank of the par value of $100 each. Gleason in payment of the stock claims to have given Wheeler eight promissory notes, six for $500 each and two for $1,000 each, all bearing the date of August 25, 1894/ and made payable four years after date. Another note for $2,500, payable to the Commercial National bank ninety days after date, he says, was given to Wheeler together with deeds to lots 5 in block 16. 7 in block 78, and 6 in block 64, of Central Seattle. The notes, he says, were secured by fifty shares of the purchased stock Gleason says that Wheeler made many fraudulent representations to him. Among other things It is claimed Wheeler represented to Gleason that the actual value of the stock in the bank was 20 per cent. above par; that the bank had a reserve of $25,000; that the securities held by the bank against the National Investment Company, the Puget Sound Lime Company, the American Investment Company, the Sidney Hotel Company, and the L H. Wheeler, W. T. Chalk and D. T. Denny loans, were as good as gold and every dollar collectible, and that every other security of the bank was first class: that the bank was in a first class financial and prosperousscondition and was doing a paying and profitable business. Wheeler, who was president of the bank, further represented to Gleason, according to the complaint, that he was obligated to the bank in the sum of $2,500, and that the note for $2,500 given by the plaintiff to the bank was given for the purpose of taking up and assumIng the obligation and that he would not draw any funds whatsoever from the bank upon the note. Wheeler also promised to and represented that he would remain in the bank and retain at least $10,000 worth of stock. Gleason alleges the truth of the matter to be that at the time he purchased the stock It was absolutely worthless, having little or no value. The bank, he says, had no reserve fund, and the obligations of the National Investment Company, the Puget Sound Lime Company, the American Investment Company, the Sidney Hotel Company. the Pacific Manufacturing Company and the Wheeler and Chalk loans were worthless, while the Denny loan was of little value. H. W. Wheler and his brothers, L. H. Wheeler and Lee Wheeler, were, Gleason says, the principal owners and holders of the stock in each of the corporations, and the loans made by H. W. Wheeler as president were made with the knowledge that they were insolvent and their securities of no value whatsoever, and for the purpose of deriving the benefits of loans personally through the corporations, "and had thereby cheated. looted and defrauded the bank of large sums of money and caused the same to suspend business." The bank, according to Gleason, was about to suspend at the time he purchased the stock, and did suspend soon afterwards. Wheeler, It is alleged. knew all of these facts. He was not obligated. It is claimed, to the bank upon his promissory note in the sum of $2,500, as he had stated. or in any sum greater than $1,800, which note Wheeler took up and withdrew $700 from the bank, replacing It by the $2,500 note drawn by Gleason in favor of the bank. The Pacific Mortgage Company. according to the complaint, was organized by Wheeler for the purpose of covering his illegal transactions and for the furthor purpose of preventing his creditors from reaching property conveyed to the Pacific Mortgage Company by him and held by the company in disguise and in the place of the defendant. On Novemher 1804 Gleason states Wheeler con-

5. October 20, 1895 The Seattle Post-Intelligencer Seattle, WA

Article from The Seattle Post-Intelligencer, October 20, 1895

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# HOW TO DODGE DEBTS Form a Corporation and Hide Yourself in It. # WHEELER'S DEALS LAID BARE. The Wreck of the Commercial National Bank-Tell-Tale Letters Come to Light. By an affidavit served on H. W. and E. R. Wheeler, of the involved Blaine Na- tional and Blaine state banks, the con- troversy over those institutions has been brought nearer home to citizens of Seattle and King county. The affiant is J. P. Gleason, deputy collector of internal rev- enue, now acting as agent for the Com- merelal National bank, of which H. W. Wheeler was president. Gleason says the "juggling of notes among corpora- tions formed for the purpose of conceal- ing the identity of the operators, whereby the bank could be looted, was carried on in this city. Another affidavit, equally sweeping, is sworn to by D. S. Miller, of Blaine, who not only repeats in more em- phatic terms allegations of crookedness heretofore made, but to substantiate his statements produces letters which passed between the Wheelers. Tomorrow the affidavits will be filed in the superior court for Whatoom county on behalf of C. P. Stone, who brought the action whereby Lester W. David was appointed receiver. Juggling With Corporations. In his affidavit Gleason says that the dentals by H. W. and E. R. Wheeler of statements made in a former affidavit are false. He states that on July 26, 1895, ne was regularly appointed agent of the Commercial National bank of Seattle, now in process of liquidation, by the board of directors. Since that date he has acted as such, and says it owns 110 shares of the capital stock of the Blaine state bank. He further states that the Commercial National bank holds against the National Investment Company a note for $1,685 dated August 30, 1894, at 10 per cent. H. W. Wheeler was principal owner and comptroller of the investment company, which Gleason says is absolutely insol- vent and was so known to Wheeler. Wheeler, according to the affidavit, was in debt to the Commercial National bank, which held a note for the amount, and Wheeler, without any knowledge on the part of the directors and during the ab- sence of the cashier is said to have sub- stituted the note of the investment com- pany for his note in the bank. Gleason then coples from a deposition of William Barry, formerly cashier of the Commer- cial National, as follows: "Q-You may state how the National Investment Company became indebted to the Commercial National bank. A.-Mr. Wheeler substituted the National Invest- ment Company's note for one of his own. "Q-You may state how the American Investment Company became indebted to the Commercial National bank. A. It took the place of one of L. H. Wheeler's notes. "Q-You may state who made the sub- stitution of both these notes. A.-H. W. Wheeler. "Q.-You may state whether the direct- ors were consulted before making the substitution. A.-No. they were not. He made the substitution without their knowledge. "Q-You may state whether these loans referred to were made by H. W. Wheeler. A.-Yes" Continuing, Gleason says H. W. Wheeler substituted a note given by the American Investment Company for $3.645.80, dated May 21, and due August 19, 1894, at 15 per cent.. for one of L. H. Wheeler's held by the Commercial National bank. The American Investment Company, Gleason says, was at the time known by Wheeler to be insolvent. Further, Gleason says,

6. December 18, 1895 The Seattle Post-Intelligencer Seattle, WA

Article from The Seattle Post-Intelligencer, December 18, 1895

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DAMAGE TO HIS GOOD NAME. Grounds on Which ex-Banker Wheeler Claims Redress From stone. The complaint of H. W. Wheeler in his $25,000 damage suit against C. P. Stone, the answer in which appeared a week ago, was filed in the superior court yesterday. It alleges that Wheeler had acquired a good reputation for honesty and competency as & financier, bank president and man of business affairs, having served as president of the Commercial National bank, of Seattle, and several other banks in the state: that In the suit for the appointment of a recelver for the Blaine State bank, where the sole question at Issue was the insolvency of the bank, Stone maliciously conspired with James Gleason and others to destroy Wheeler's good name by introducing Gleason's Irrelevant affidavit. In which the statement occurs that "H. W. Wheeler is insolvent. and by reason of his fraudulent transactions while president of the Commercial National bank, cheated, looted and defrauded said bank and caused the same to suspend business: that he is now appropriating the funds of the defendant (Blaine State) bank, and is converting its assets to his own use, without rendering any account for them." This particular affidavit is incidentally desounced in the complaint as "false, defamatory and scandalous," and Mr. Wheelor sets the damages to his "reputation, feelIngs, good name and standing" at $25,000. A 00-cent toothbrush for 10 cents, at the the Gem drug store, 519 Second street, Occidental block

7. March 15, 1896 The Seattle Post-Intelligencer Seattle, WA

Article from The Seattle Post-Intelligencer, March 15, 1896

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Court Notes. In the case of C. B. Lowry vs. Wallace H. Moore, the defendant yesterday gave notice of appeal to the supreme cour. Marriage licenses were Issued yesterday for Victor Broulet and Christy M. Watson, Charles Conselyea and Margaret Chilberg, all of Seattle. The decree of divorce in the case of John H. Kennedy vs. Lillie J. Kennedy was signed by Judge Humes yesterday. The case was tried Friday. In the case of Wallace H. Moore, trustee, vs. Edward L. Terry and A. A. Denny, the defendants yesterday gave notice of appeal to the supreme court. In the case of Miles Cornthwalte vs. John Cornthwaite, the Stimson Mill Company, garnishee, judgment was yesterday signed by Judge Osborn in favor of plaintim and against garnishee for $67.80. In the case of A. C. Fry vs. Joseph Packard and wife, E. B. Palmer yesterday filed in the superior court a claim of lien against the judgment for services rendcred plaintiff as attorney, in the sum of $26. The case of Clark T. Davis vs. the Imperial Insurance Company, was yesterday. by Judge Osborn. ordered transferred to the superior court of Pierce county in pursuance of a stipulation between the parties. Decree of foreclosure of mortgage was signed yesterday by Judge Langley in the case of Selma A. Peterson vs. Magnus S. Norstrom, the amount being $200. attorney's fee $50 and costs, on the land 5½ lot 6. block 9. Baxter's addition. and lots 25 and 26, block 2, Ballard Park Second addition. Judge Jangley yesterday signed a decree in the case of C. M. Sheafe, receiver of the Washington National bank, vs. William D. Wood et al., judgment being for $8,727.68, and a trust deed being foreclosed on several blocks of land in Wood's south division of Green Lake addition to Seattle, 141 lots in all. Confirmations of sale of real estate were signed in the superior court yesterday las follows: John a Agen vs. Benjamin F. Day et ux. and Thomas C. Van Nuys. tract in section 18. township 25, range 4, also blocks 3 and 4 Francis R. Day La Grande: Joseph Fosnaugh vs. E. B Robinson et at, 30 acres in section 21. township 25, range $ east. An trder signed by Judge Langley was filed Yysterday in the superior court authorising Christ Kuppler, receiver of the Pacific Manufacturing Co., to employ Relfe & McCutcheon and G. E. de Stelguer as attorneys to act for him in proceedings against the Commercial National bank of Seattle for the purpose of securing a receiver for that institution. The following corporations yesterday filed in tife auditor's office, as required by law, a lift of their officers for the current years, Richmond Beach Improvement Company Union Trunk Line, James Street Construction Company, Metropolitan Land Company, Syndicate Coal Company, Renton Farm Company, Lowman & Hanfahi Stationery & Printing Company, Leaman & Hanford Lithographic Yesler Logging Company, Company as Land Company, Seattle Leary-9 mpany, Northwestern Gas Theate Contry

8. February 2, 1897 The Seattle Post-Intelligencer Seattle, WA

Article from The Seattle Post-Intelligencer, February 2, 1897

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Representative Hyde has had several interviews with Gen. Sawtelle recently on the subject of the army post, and finds him very favorably inclined toward its immediate establishment. The general was before the sub-committee on appropriations the other day, and was asked to submit a special estimate of the amount which he believes could be profitably expended during the next fiscal year. Representative Doolittle is rendering his colleague all possible aid in this connection, and all feel sure that they will be successful in securing a continuing appropriation in the sundry civil bill which will soon be reported to the house. Bank Examiner Simon P. Flynn's recent visit to Washington was productive of exceedingly good results for himself, for Comptroller Eckels has transferred him to the Minnesota district, where there is more work for a bank examiner at the present time, and also more pay. Mr. Flynn's promotion is stated by Comptroller Eckels to be solely due to the ability he has shown in his work in the state of Washington. There was some talk here that Charles H. Baker, receiver of the Commercial National bank at Seattle, would be made examiner to fill the vacancy made by the promotion of Mr. Flynn, but Comptroller Eckels states that there is no necessity for another examiner in that district, and that Bank Examiner Eugene Wilson will hereafter unite with his other duties those heretofore performed by Mr. Flynn. Senator Wilson states that all applications which are sent to him for postmasterships in the state of Washington are being filed in the postoffice department as soon as received, as in that department each office has a pigeon-hole where all papers pertaining to it are placed for reference at any and all times. A similar system, however, does not prevail in the other departments, and the papers of all applicants for positions in the interior, treasury and department of justice will not be filed until after March 4. THE INDIAN APPROPRIATION BILL The Indian appropriation bill carries for the states of Washington and Idaho an aggregate sum of $163,100, and for Indian police in Alaska $135,000. The salaries of Indian agents are fixed as follows: At Colville, $1,500; at Neah bay, $1,200; at Tulalip, $1,200; at Yakima, $1,800; at Fort Hall, $1,500; at Lemhi, $1,200; at Nez Perces, $1,600. For the Indian service in Washington, including traveling expenses of agents and the support and civilization of Indians at the Colville and Puyallup agencies, and for pay of employes, $14,000. For support and civilization of the Duwamish and other allied tribes in Washington, including pay of employes, $7,000. For support and civilization of the Quiniaults and Quillayutes, Washington, including pay of employes, $3,000. For support and civilization of the Makahs, Washington, including pay of employes, $4,000. For support and civilization of the Clallam Indians, Washington, including pay of employes, $1,500. For support and civilization of the Walla Walla, Cayuse and Umatilla tribes, including pay of employes, $5,000. For support and civilization of the Yakimas and other Indians at the Yakima agency, including pay of employes, $8,000. The sixth of the ten installments of $5,000 each promised to the Spokane Indians is appropriated, "to be expended under the direction of the secretary of the interior in erecting for them on the Coeur d'Alene reservation suitable houses, in assisting them in breaking lands, in furnishing them with cattle, seeds, agricultural implements, saw and grist mills, threshing machines, mowers, clothing and provisions; in taking care of the old, sick and infirm; in affording educational facilities, and in any other manner tending to their civilization and self-support, according to the agreement of March, 1887." A special provision is inserted, that any moneys heretofore or hereafter to be appropriated for these Indians shall be expended not only for the members of the tribe who have moved to the Coeur d'Alene reservation, but also to those who have removed or shall remove to the Colville, Spokane or Jocko reservations. A blacksmith and a carpenter for these Indians, for the ostensible purpose of teaching them those trades, are provided at a salary of $1,000 each. Chiefs Louis and Enoch receive their usual annuity of $100 each. The Coeur d'Alene Indians get this year the sixth of the fifteen installments of $8,000 promised them by their treaty with the United States, and also $3,500 for pay of blacksmith, carpenter and physician, and for the purchase of the necessary medicine. The annuity of $1,000 for Chief Moses, of the Columbia and Colvilies, promised him in the treaty of 1883, is continued, and also an appropriation of $6,000 for employes to care for these Indians. For general incidental expenses for the Indian service in Idaho, including traveling expenses of agents, $1,000 is appropriated, and $3,000 for operating two portable steam sawmills on the Nez Perces reservation, and for necessary repairs for the same. The bill also provides for the payment of the ninth installment of $6,000 to be used by the secretary of the Interior for the benefit of the Fort Hall Indians in such manner as the president shall direct. For the purchase of agricultural implements and the support and civilization of Chief Joseph's band of Nez Perces Indians $7,500 is appropriated, and for other Nez Perces Indians in Idaho, including the pay of a physician for them, $5.000. A still further sum of $6,000 is appropriated for the Nez Perces for salaries of two matrons, to take charge of the boarding schools, two assistant teachers, one farmer, one carpenter and two millers, as was promised the Indians in their treaty of 1863. The Shoshones, Bannocks and other Indians fare exceedingly well. Those on the Fort Hall reservation are allotted, for their support, civilization and instruction, including pay of employes, $30,000. Those on the Lemhi agency get for the same purpose $13,000. The Shoshones receive, besides this year, the twenty-eighth of thirty installments of $10,000 for the purchase of clothing, and $5.000 for the pay of a physician, teacher, carpenter, miller, engineers, farmer and blacksmith, and another $1.000 for the pay of a blacksmith's helper and for the purchase of materials. The Bannocks also receive their twenty-eighth installment of $5,000 for the purchase of clothing for the members of the tribe, and another $5,000 for the pay of similar employes to those furnished the Shoshones. The commission created by the last session of congress to treat with the Yakima, Fort Hall and other Indians in the Pacific Northwest, for a cession of certain portions of their lands to the United States, are very anxious to know whether their

9. March 18, 1899 The Seattle Post-Intelligencer Seattle, WA

Article from The Seattle Post-Intelligencer, March 18, 1899

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TURE WAS A FORGERY. HOLDS THAT TOZIER DID SIGN THE CERTIFICATE. MeClinton Intimates That the Transaction by Which the CertiSente Was Loaned Saunders Was Immoral and Against the Law. PORT TOWNSEND. March 17.-Sitting chambers today. Superior Judge McClinton rendered his decision in the case of the Washington National Loan, Buildthe and Investment Company versus J. C. Saunders, the object of which was to Getermine the ownership of a share of stock Issued to Capt. D. F. Tozier, U. S. sevenue cutter service, and upon which Baunders negotiated a loan of $800. Judge McClinton decides with the contention of Capt. Tozier, that his signature attached thereto is a forgery, but does not intimate who perpetrated the crime. The right of passession of the certificate of stock. now matured, and which has been in question. is still in abeyance, the court setting Monday as the time for argument. In his decision Judge McClinton said the testimony adduced showed that the stock had been loaned to Saunders to swell the statement of assets of the now defunct Commercial bank at the time a receiver was appointed, and all seemed favorable to àn early resumption of the Institution. This In Itself, Judge McClinton holds, was an immoral act against the laws, and the conclusion has materially affected the matter of postponing the decision as to who is the rightful owner of the share. The prospect of criminal prosecution is at the present remote. Saunders left here this morning. announcing his intention of returning tomorrow. Should Judge MeClinton's decision next Monday return the share to Capt. Tozier. it is not improbable that a warrant for uttering a forged document will be issued. As this transaction occurred in Seattle, where Baunders recelved the money, criminal proceedings, If any, must be instituted there, and he will be the defendant. Calvin E. Vilas, vice president and manager of the Washington National Building Loan and Investment Company, who raturned yesterday from Port Orchard. was shown the foregoing dispatch last night. He said that he understood the only remaining proceedings to be had in the Jefferson county court was the argument on the question as to the right of possession of the stock certificate. Relafive to possible criminal proceedings against Former Collector Saunders, Mr. Vilas said: "That is a matter in which we have no especial interest. I know nothtrig of any contemplated criminal proceedings growing out of the case."

10. December 30, 1903 The Seattle Star Seattle, WA

Article from The Seattle Star, December 30, 1903

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Y. Ostrander, president of the Commercial National bank, to that bank' to secure an indebtedness. Brown claims these notes were later canceled, without consideration from Ostrander. The whole transfer of the proper-< ty is alleged to have been fraudulent and the result of collusion betweent the officers of both banks to cheat the stockholders of the Commercial National bank. As a result, the petiioner for at receiver claims the money has been so diverted that there is not enough left to pay the indebtedness of the defunct bank, which amounts to about $70.000. If the funds had been well managed, Brown states, there would have been a surplus remaining after the debts were paid. to be divided among the stockholders. It has always been impossible, Brown sayse to get together a quorum of the drectors of the Commercial Nationat bank. to ask them to demand an accounting from the Seattle Natonal bank. Brown demands the appontment of a receiver to assume charge of the remaining property of the Commercial National bank, and also an accounting from J. P. Gleason and E. W. Andrews, of the Seattle National bank. He demands further, that the Seattle National bank be charged with the full face value of Ostrander's notes, which it is said to have canceled.

11. December 30, 1903 The Seattle Star Seattle, WA

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FRAUD CHARGED A sult for the appointment of a receiver for the long defunct Commercial National bank, in which sensational allegations of fraud and collusion and misappropriation of funds are made against the Seattle National bank and its officers, was filed in the superior court today by Herman J. Brown, a shareholder in the former concern. Brown alleges that when the Commercial National bank went out of business after the pante in 1894. It WAS possessed of property which was worth $175,000. and ample to pay its Habilities. This property. It is stated, was turned over to the Seattle National bank to protect and preserve, and any surplus funds were to be repaid to the stockholders, pro rata. Among the assets, according to Brown's complaint, were $7,000 worth of promissory notes given by John

12. December 31, 1903 The Seattle Star Seattle, WA

Article from The Seattle Star, December 31, 1903

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FRAUD CHARGED A suit for the appointment of a receiver for the long defunct Commercial National bank, in which sensational allegations of fraud and collusion and misappropriation of funds are made against the Seattle National bank and its officers, was filed In the superior court today by Herman J. Brown, a shareholder in the former concern. Brown alleges that when the Commercial National bank went out of business after the panie in 1894, it was possessed of property which was worth $175,000. and ample to pay Its liabilities. This property, It is stated, was turned over to the Seattle National bank to protect and preserve, and any surplus funds were to be repaid to the stockholders, pro rata. Among the assets, according to Brown's complaint, were $7,000 worth of promissory notes given by John