22372. City National Bank (Spokane, WA)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 12418
Charter Number: 12418
Start Date: January 23, 1929
Location: Spokane, Washington (47.659, -117.426)

Metadata

Model: gpt-5-mini
Short Digest: 51649b4c

Response Measures

Capital injected, Full suspension

Other: Old National Bank & Union Trust Company purchased assets and acted as liquidating agent; receiver James A. Drain later involved.

Receivership Details

Depositor recovery rate: 76.8%
Date receivership started: 1930-11-20
OCC cause of failure: Losses
Share of assets assessed as good: 28.9%
Share of assets assessed as doubtful: 27.9%
Share of assets assessed as worthless: 43.3%

Description

Contemporary articles state an uncalled-for run in January 1929 which caused the bank to suspend and its assets to be taken over by the Old National Bank & Union Trust Company for liquidation (transfer dated January 23, 1929). The bank did not reopen; liquidation and receiver actions followed and stockholders later sued. No concrete single piece of misinformation is described, so random_run is False.

Events (7)

1. July 28, 1923 Chartered

Source: historical_nic

2. January 23, 1929 Run

Cause: Rumor Or Misinformation
Cause Details: Contemporary reports describe an uncalled-for run in January 1929 that forced suspension; no specific bank-specific insolvency or external shock is given, suggesting rumor/nervousness.
Measures: Old National Bank & Union Trust Company was asked to act as liquidating agent and paid depositors; assets were purchased and placed in liquidation.
Newspaper Excerpt: a year ago when the uncalled-for run on the bank occurred, which caused its suspension
Source: newspapers

3. January 23, 1929 Suspension

Cause: Rumor Or Misinformation
Cause Details: Suspension followed the uncalled-for run in January 1929; the Spokane Clearing House arranged for Old National to liquidate and pay depositors the following morning after the run became apparent.
Newspaper Excerpt: the bank could not continue ... the association decided render assistance ... Old National Bank and Union Trust company asked to liquidating agent
Source: newspapers

4. March 19, 1929 Voluntary Liquidation

Source: historical_nic

5. December 1, 1929* Receivership

Newspaper Excerpt: In December last year James Drain the affairs of the City National bank having been pointed the currency The liquidation will be completed WAS DISMISSED to About the first of this year minority group stockholders instituted federal the court suit ... dismissed by Judge Webster ... the present suit ... accounting of our stewardship will be pleased to give formally ... the City National bank was taken for liquidation by the Old National January 23, 1929 (multiple articles describe liquidation and appointment of a receiver).
Source: newspapers

6. January 1, 1930* Other

Newspaper Excerpt: STOCKHOLDERS OF CITY NATIONAL of the National bank whose assets were purchased in January, 1929 ... the Old National Bank & Trust company purchaser the City National assets, assumed payment full of the deposit and report liquidation of assets in the sum of $1,500,000, leaving $500,000 still to be liquidated (stockholder meeting discussing liquidation and shrinkage of assets).
Source: newspapers

7. November 20, 1930 Receivership

Source: historical_nic

Newspaper Articles (8)

1. December 17, 1929 The Spokane Press Spokane, WA

Article from The Spokane Press, December 17, 1929

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Article Text

Pioneer Talks As Told to Robert Owen By HARRY GOETZ The courage and faith of the citizens of Spokane Falls met its first test in the fire of Au gust 1889 that practically wiped out the town. much improved and prosperous city of brick appear ed from the ruins, and under the impetus of mining lopment in the Coeur Alenes, set tlement and of the farm ing lands the Inland Empire and the the lumber busi as an important the city enjoyed rapid and splendid prosperity for several years But the courage of the citizens and the resources of Spokane soon to be tested in the panic of 1893. There was little indication of impending events to people of the financial situation that was 80 near Trade and industry prospered in this prosperity being reflected in large increase in railway freight tonnage Spokane forward to big year in business The Great North ern completed, and the public still hoped for lower rates. Mining had been resumed in the Coeur Alenes an extensive scale, and territory to the north in the neighborhood the Old Dominion mine booming Heavy falls promised good crops and irrigation now being used effectively varlous points in the Inland Empire More than million dollars had in new building in Spokane in including the new the Marble Bank building erected by M Cannon But Cannon had unfortunately himself to come interested in too many distant and doubtful enterprises Under the leadership of Paul Mohr. W. Durham tells us, "He had been lured into heavy invest ments in coal mines in the Cascade portage railroad scheme around the rapids in the Columbia river above The Dalles. Mohr went east desperate ef. fort to these elephants on New York and Mr. Cannon, realizing critical condition. eagerly scanned his agent's ports. Mohr falled get aid in the and Cannon was forced to ask for help from the Spokane banks. After examination of his affairs on the morning June 3. 1893, the Bank of Spokane Falls failed open its doors for business. This news created sensation and no blame attached to Mr. Cannon by the general public, the popular reaction being one deep sym pathy for the kind hearted pioneer had done much to make Spokane the lively little city which had become Twenty hours the Bank Spokane Falls closed. the Wash ington National and the Washing ton Savings bank suspended pay ment, and hard run on the CitiNational forced to close its doors one hour closing time. On July the Washington National business in quar ters previously occupied by the broken Spokane National Riverbeen side and Howard property that had vacant years banks disasters subjected the remaining These to July 26 the First National and after on steady run of 50 days, became in solvent

2. January 25, 1930 The Spokane Press Spokane, WA

Article from The Spokane Press, January 25, 1930

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Article Text

STOCKHOLDERS OF CITY NATIONAL of the National bank whose assets were purchased in January, 1929. and the opera tions of the bank suspended, were encouraged over their meeting, held Thursday The Old National Bank & Trust company purchaser the City Na tional assets, assumed payment full of the deposit and report liquidation of assets in the sum of $1,500,000. leaving $500,000 still to be liquidated YOU CAN'T DO THAT minister of agriculture is to be ed in the house of commons intends apply the national mark British when ed from barley and

3. January 26, 1930 The Spokesman-Review Spokane, WA

Article from The Spokesman-Review, January 26, 1930

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HAS NO CRITICISM Mica Man Cites Hardships to Those Who Invested-Avers Securities Shrunk. To the Editor of The Spokesman. Review: The stockholders' meeting of the City National bank, now under process of liquidation by the Old National Bank and Union Trust company, held January 21 in an assembly room of the Old National bank, was represented by a large attendance of shareholders. They could hardly be classed as a joyous, happy bunch. Real anxiety over the outcome of their investment was apparent, more particularly so in the case of the older men and women present, of whom believe there was majority, those whose earning capacity had or was about ended The report of the liquidating committee while fairly stating the exlating conditions was far from encouraging First Hopes Were High. A year ago when the uncalled-for run on the bank occurred. which caused Its suspension and the arrangement made for its liquidation, its affairs were put in such shape that depositors would be paid in full. If collections were successful and its securities could be marketed at near the purchase price, some having appreciated and some otherwise, and its other assets not suffor much loss, shareholders had high hopes that they would get back major part of the money invested. The report shows fearful shrinkage in the market value of the bonds and securities still held, as well as losses that will occur In nearly all of its other assets, and the end is not yet. Predictions are not optimistic as to the early recovery of values and sale of the bank's Could future conditions have been foreseen it would seem to have been the better policy to have closed the bank and to have taken the usual method of liquidation, as enough more would have been realized at that time from an immediate sale of Its holdings to Insure a greator return to shareholders. No Criticism of Handling. There was no criticism R.S to the manner those in charge of the liquidation are handling the affairs. A unanimous vote of thanks was extended to all those in charge of this service. From the report submitted the bonds held estimate will not average more than per cent interest, and there 18 being paid the Old National Bank and Union Trust company, liquidators, per cent interest on more than Would It not be noble act, and even a good business move on the part of the Old National Bank and Union Trust company to say to these unfortunate shareholders, "We will split the difference on the interest the shareholders are receiving and the interest paid us and make it per cent"? This would not exactly be an act of charity, for banks can not afford to go too extensively Into the charity business, but for the reason that the security offered To of a high order, being protected by the holdings which they control, in addition to the responsibility of the stockholders to make good any deficit, would be justified. further reason, doubtless the

4. April 6, 1931 Spokane Chronicle Spokane, WA

Article from Spokane Chronicle, April 6, 1931

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SUE TO RECOVER ON BANK ASSETS Suit to recover on the assets of the City National bank was filed in perior today by group of stockholders The action against the Old National Bank and Union Trust company Ask Accounting The stockholders ask an accounting of the affairs City National bank. formerly the National bank was taken for liquidation by the Old National January 23, 1929 They ask to recover the amount by which assets of that date exceeded liabilities They ask cancellation of $200,000 note which claim directors City National gave the Old National the time of the transfer was given as collateral for any deficiency between the value of the assets and the liabilities, the complaint states 100% assessment has been levied on stockholders of the City National by the comptroller of the currency. Sued Bank Receiver The action today brought by R. Jones 120 other City stockholders The suit was filed by John M. Boyle Jr. Seattle lawyer. Mr previously represented group the stockholders suit in federal court against General James A. Drain, receiver the City National and the Old National The suit was thrown out of court by Judge Webster on the ground there no tionable against the national banking department

5. April 6, 1931 Spokane Chronicle Spokane, WA

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SUE TO RECOVER ON BANK ASSETS Suit to recover on the assets of the City National bank filed in perior court today group The action against the Old National Bank Union Trust company. Ask Accounting The stockholders ask the affairs the City National formerly the tional bank was taken for by the Old National Jan23. 1929. They ask to recover the amount by which assets of date exceeded liabilities They ask cancellation of note which directors City National the Old National at the time of the transfer The note given as collateral for any ficiency the value of sets and the liabilities the complaint assessment has been levied City National the comptroller of the currency Sued Bank Receiver The today brought R Jones and 120 other City National The filed by M Boyle Seattle lawyer Mr. Boyle previously represented the in suit federal court against James A. Drain receiver the City National and the Old National The suit thrown out of court by Judge Webster the ground there no against the na tional banking

6. April 6, 1931 Spokane Chronicle Spokane, WA

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SUE TO RECOVER ON BANK ASSETS Suit to recover on the assets of the City National bank was filed in perior court today by group of stockholders action against the Old National Bank and Union Trust company. Ask Accounting The stockholders ask an accounting affairs of the City National bank formerly the Brotherho National bank which was taken for liquidation the Ola National January 23. 1929 They ask to recover the amount by which assets of that date exceeded liabilities They also ask cancellation of $200,000 they claim directors the City National gave the Old National the time of the transfer The note was given as collateral for any deficiency the value of the assets and the liabilities the complaint has been levied of the City National by the comptroller the currency. Sued Bank Receiver. The action today brought by R. Jones and 120 other City National The filed by John M. Boyle Jr. Seattle lawyer Mr Boyle previously resented group of the stockholders in suit in federal court against James A. Drain, receiver of the City National and the Old National The suit thrown out of by Judge Webster on the ground there no actionable complaint against the na. tional banking department

7. April 7, 1931 Spokane Chronicle Spokane, WA

Article from Spokane Chronicle, April 7, 1931

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SUE TO RECOVER ON BANK ASSETS Suit to recover on the assets of the City National bank was filed in superior court today group of stockholders. The action is against the Old National Bank and Union Trust company. Ask Accounting. The stockholders ask an accounting of the affairs the City National bank. formerly the Brotherhood National bank. which was for liquidation the Old National January 23, 1929 They ask to recover the amount by which assets of that date exceeded liabilities They also ask cancellation of $200,000 note which they claim directors the City National gave the Old National at time of the transfer. The note was as collateral for any deficiency of the assets and the liabilities the complaint states 100% assessment has been levied on stockholders the City National by the comptroller of the currency. Sued Bank Receiver. The action today brought by R. Jones and 120 other City National stockholders The suit was filed by M. Boyle Jr., Seattle lawyer. Mr. Boyle previously represented group the stockholders in suit in federal court against James Drain, the City National, and the Old National The was thrown out of court by Judge Webster on the ground there no actionable complaint against the national banking department

8. April 7, 1931 The Spokane Press Spokane, WA

Article from The Spokane Press, April 7, 1931

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REBELLION NATIONAL GAVE HELP IN LIQUIDATION Spokane People Reveal Spirit of Times to Come, and Here Are New Commandments A bird born in a cage never desires will experts you. Because it does not know what freedom is. But give it freedom. let it let it do as wills and then cage it up again. The result will be miniature rebellion and if the bird not freed before long, again will either die or kill itself beating against the sides of its tiny prison. The American people are much like that Unlike the serfs and vassals of a dark age, we were born free, and when our freedom is denied us we are apt to rebel. Prosperity brought us the freedom to buy many things, to live lives of moderate fort. On the day before Easter more lilies were sold in Spokane than ever before. can't afford was common expression heard in stores where flowers were sold, "but we'll buy some anyhow.' They said it stubbornly, resolutely with decision born out of desperation. And when enough American people have courage to rebel against present conditions, prosperity will be restored. The American people, once having tasted, will demand that. On the same theory, the prohibition law is doomed to Had we never enjoyed the liberty of drinking when we saw fit. the dry law would undoubtedly be a huge success BUT THERE WAS A TIME WHEN THE AMERICAN PEOPLE WERE JUDGED INTELLIGENT ENOUGH AND STRONG ENOUGH TO DECIDE MATTERS OF PERSONAL LIBERTY WITHOUT BENEFIT OF LAW. Now we are children, punished for having normal appetites, by parent who verges on radicalism in his wild desire to make us conThere has arisen, through his efforts a new set of commandments: shalt not drink strong liquor. shalt not spend money, lest thy disappear and become forced to join the hopeless horde. shalt not own home. unless you are willing to assume tax burden all reason. shalt not (Continued Page Two) D. Vincent, President, Explains City National Suit as Merely an Accounting statement complete port of the story of the liquidation the City National sued Wednesday by Vincent, president the Old National Bank Union Trust company statement follows filing of Tuesday by more than 100 stockholders the former City National bank who allege fraud and collusion in the sale the bank in January The stock holders cancellation of $200, 000 promissory note executed their directors and to adjudge them not indebted to the Old National Mr. Vincent's statement follows: NATIONAL ACTED AGENT To understand import the present suit necessary view what happened. The City Na tional bank became involved difficulties in January 1929 the evening of 23d of that month became apparent to their officers directors that the bank could not continue and they asked consultation the Spokane Clearing House association result, association decided render assistance would sure immediate payment to all of their depositors. Old National Bank and Union Trust company asked to liquidating agent, pay off all depositors in which done the follow ing morning Prior that day our institution had no special know edge the affairs of the City Na tional Immediately thereafter as liqui dating started con vert all of their assets into cash. and during the 22 months did in fact pay off per of the debt which National bank owed. In December iast year James Drain the affairs of the City National bank having been pointed the currency The liquidation will be completed WAS DISMISSED to About the first of this year minority group stockholders stituted federal the court suit being directed against Old National Bank and Union Trust company and against General City Na tional bank In February this dismissed by Judge Webster present suit, by practically same group minority stock holders accounting of our go stewardship will be pleased to give formally. even have given informally to any interested party sought During the course of the liquida their directors were consulted freely and our impression that most of the stockholders apprecithe fact that the facilities of our institution made able liquidation without compensation source of some gratifi cation that our instrument selected to render this depositors the City National bank, and incidentally the stock holders that institution