State Bank - Seattle, WA

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: February 18, 1921
Location: Seattle, Washington (47.606, -122.332)

Metadata

Model: gpt-5-mini
Short Digest: 6adc9cbb

Response Measures

None

Description

Article links an embezzlement conviction of teller Paul Schaefer and alleged loans to a bootleg/whisky ring to the crash of the State bank, indicating bank-specific malfeasance led to the bank's failure/closure. No run or depositor panic is described in the excerpt. Publication date used as event date (1921-02-18) since the closure/crash is discussed contemporaneously.

Events (1)

1. February 18, 1921 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Embezzlement by teller Paul Schaefer and loans/connection to a large bootleg/whisky ring led to the bank's crash/closure.
Newspaper Excerpt: caused the crash of the State bank ... Paul Schaefer, convicted teller ... of embezzling $5,000 ... had made a detailed statement ... implicating whisky ring
Source: newspapers

Newspaper Articles (1)

1. February 18, 1921 The Seattle Star Seattle, WA

Article from The Seattle Star, February 18, 1921

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Article Text

POLICEMEN INVOLVED, IS CHARGE Sheriff's Net Closing on Alleged Principals in Giant Syndicate More arrests within a few hours octo connection with the "bootleg in caused the crash of the State bank were predicted weeks pus" North which Side ago, here Prosecutor shortly three before noon Friday by Matt Malcolm Douglas and Sheriff Starwich. Prosecutor and sheriff have joined a sweeping Investigation exposed by of forces matters in who Paul pleaded Schae fer, convicted teller. $10. guilty yesterday of embezzling five 000 and was sentenced to serve to 15 years in the penitentiary. SAYS BOOZE RING REACHES INTO POLICE DEPARTMENT said he expected this af to close in on a have been said ternoon Starwich to dealing bank whisky closed ring. with Schaefer before the This ring. he declared, has tentacles reaching into the police department disclose The prosecutor would not the evidence his office is furnishing new the sheriff. but intimated "a angle" was being uncovered. Thomas P. Revelle, Schaefer's law that was first to make it known yer. the prisoner had made a clean breast of his affairs to Douglas. Revelle told Judge King Dykeman. when his Schaefer was sentenced, that client had made a detailed statement of persons in a big number to the prosecutor. implicating whisky a ring. Douglas admitted the truth of Revelle's assertion and added that statement had already re Schaefer's in number of arrests and would sulted likely a be the cause of several more. Further than that. Douglas the said. he could not comment on prisoner's confession without danger cer of hindering the apprehension of tain other persons. SOUGHT TO GAIN LENIENCY FOR CLIENT Revelle's purpose in telling the court of Schaefer's admiss'ons was to gain leniency for his client, who, said, was "not the real guilty party." he but a "poor fool," who some had been used as a tool by persons. citizens, them highly respected of who had borrowed money for illegal enterprises. "Personally." said Revelle, ad the court, "I I lieve dressing in penitentiaries. do eight have not crim- had be handling of seven or as during my Four of these sena have Inal the lawyer. cases been given suspended practice defendants and turned over to made good. If were have tences all given a suspended the me-they sentence, this court boy I can promise the money lost by to recovered and all I could think be restored the bank its "He lawful has owners. done what he could He to the wrong he has done. right me recover much of the how much was knows has helped money. but as stolen. yet the nobody Even bank he does not know. When accounts out and shortage is straightened examiner gets the determined, the amount to with this young we can get back of believe, help the us, man every cent. has made a long statement dis "He the prosecuting attorney. to the names of the real guilty been closing Some have already and I to be, some of our arrested are parties. likely understand others best citizens among them." TEARS ROLL DOWN SCHAEFER'S CHEEKS stood bent over the with rtil the judge's ing his Schaefer before rolling down bench cheeks. tears men to the peniten steal because said Prosecutor a hungry." tiary "We who send they home, Douglas. are man had a good position "This in a bank. He wasn't hungry. not only stole the trust funds "He in his bank. but loaned of the depositors money to lawbreakers to finance illegal transactions, true he has made a statement of "It is that has led to the arrest to several me persons. We hope to appre- have several others. But we and hend delayed sentence to permit recover him the attorney time to is his money. If his assistance can bank's further in this regard, he needed be brought back from the penitentiary." JUDGE INQUIRES AS TO MINIMUM SENTENCE Dykeman asked what the minimum Judge sentence was for grand larceny. law says 'not less than one year "The nor more than 15, replied Douglas is the sentence of the court "It he be confined in the penitenti- five Walla Walla not less : ary than 15 years," "If that at more than said the nor as Schaefer turned away. the rehe judge, is needed here to help in 6) (Turn to Page 18, Column