278fe168Full suspension
Other: Receiver appointed and long receivership with litigation; dividends paid later during liquidation.
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BANK COMMISSIONER SUES JAFET LINDEBERG FOR CASH SAN FRANCISCO, March 26Bank Commissioner Hay, of the state of Washington, has filed suit in the federal court here to compel Jafet Lindeberg and Erik O. Lindblom to return to the receiver of the defunct Scandinavian American Bank, of Tacoma, the sum of $464,951, said to be due the bank on promisory notes given by the two defendants.
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Grand Jury Inquiry of Bank Failure Demanded TACOMA, Jan. 19.-Prosecuting Attorney W. D. Askren, today asked the Superior Court to call a Grand Jury investigation of charges of gross mismanagement of the affairs of the Scandinavian American Bank of Ta coma, which closed its doors Monday owing to several thousand depositors and having only relatively small assets. The Court indicated that it would comply with the prosecutor's request if evidence is produced ind cating criminal acts in connection with the bank's failure. Other Tacoma banks have announced that money would be advanced depositors in the defunct institution and no run on other banks is anticipated.
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FORMER HEAD OF BANK ALLEGED EMBEZZLER TACOMA, Feb. 11 (by Associated Press).-Ole Larson, former president of the defunct Scandinavian-American bank here, has been arrested, charged with the embezzlement of $60,000 of the bank's funds, on a note purported to have been signed by Jatef Lindeberg, president of the Pioneer Mining & Ditch Company of Alaska. Lindeberg has notified the receiver of the bank that the note is a forgery. He is one of the heaviest debtors of the bank. The note was signed more than a year ago. Attorneys for Larson are trying to get a reduction of the amount of his bail, which was set at $100,000.
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# Bank President Is # Out on $20,000 Bail Ole S. Larson, former president of the Scandinavian-American Bank of Tacoma, which recently was placed in the hands of a receiver, was released from the Tacoma jail Saturday on $20,000 bonds. Larson is under grand jury indictment for alleged misappropriation of the bank's funds.
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LINDEBERG IN THE LAWS TOILS Tacoma, Mar. 16.-Jafet Linberg, the spectacular operator and reputed very wealthy Alaskan is finding life more or less stormy. He has been indicted by the grand jury in connection with the failure of the Scandanavian-American bank in TaReceiver Haskell announccoma. ed that Linberg and the companies with which he is associated owe the bank something like a million dollars. When a man is down others fall upon him. Such is the case with Linberg. Two suits have been filed against Linberg by the stockholders of the Pioneer Mining and Ditch Co. of this city. The one suit is for recovery of the Seward Peninsula railway of Nome, which Linberg is alleged to have bought for the company and which he has refused to turn over to the company. The other suit is for the recovery of one hundred thousand dollars advanced to Linberg by the company. San Francisco, Mar. 17.-The authorities were advised that a warrant charging Jafet Lindberg with complicity in wrecking the Tacoma, Scananavian American Bank, is enroute here. Heretofore any attempt to arrest Lindeberg has been blocked by his attorney because a warrant was not at hand. Guy E. Kelly the attorney for the receiver of the bank is here pressing the case against Lindeberg. He declares that the arrest is only a question of hours.
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Lindeberg, Lindblom Sued To Recover Bank's Funds SAN FRANCISCO, March 28.The Bank Commission of the State of Washington has filed suit in the Federal Court here to compel Jafet Lindeberg and Erik O. Lindblom, directors of the defunct Scandinavian-American Bank of Tacoma, to return to the receiver of the bank a total of $464,951 alleged to be due on promissory notes.
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SUE FOR RETURN OF MON San Fracisco. March 28.-A suit has been started against Jafat Lindeberg and Erik O. Lindblom for a return of $46,495 with interest which is due the receiver of the Scandinavian-American Bank of Tacoma. This suit has been filed in the United States district court by C. E. Hay the bank commissioner of Washington. Lindblom's part is one hundred and twenty one thousand dollars.
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Sues For $464,951 Claimed Due Bank SAN FRANCISCO. March 28.-A suit to compel Jafet Lindeberg and Erik O. Lindblom, Alaska, Tacoma and San Francisco capitalists, to return a total of $464,951 said to be due, with interest, to the receiver of the candinavian-American Bank of Tacoma, was filed in the United States district court here today by C. E. Hay, bank commissioner for the state of Washington. Lindeberg, a former director of the bank, is under indictment in connection with its closing and his extradition to Tacoma is being sought. The funds were in the form of promissory notes from the bank, according to Hay's complaint.
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SEATTLE, March 28.-Three Chinese discussing the Alaska fish cannery work in a room on the fourth floor of a hotel here were interructed by the police. Excitement ensued and Kow Tee Lee, one of the trio, jumpd through the the window into the street sustaining probably fatal injuries when he landed on the pavement. SAN FRANCISCO, March 28.-Suit to compel Erik O. Lindblom to return $46,495 due with interest to the receiver of the Scandinavian American Bank of Tacoma was filed in the United States district court by C. E. Hay, bank commissioner of Washington. Lindblom has had $120,000 from the bank. NATCHEZ, Miss., March 29-Lieut. W. D. Coney, the injured aviator took a change for the worst and his physicians have very little hope for his recovery. Pneumonia has made its appearance. Social prayers are being given in all the churches for his recovery. His mother arrived at Natchez. PENSACOLA, March 29-Seerch for the missing baloon has been largely suspended because of threatening rain tomorrow. Dirigible patrol believe that the men if alive are aboard a sailing ship lacking wireless WASHINGTON, March 29-Tornado damage nearly twenty thousand dollars and two dead n addition to ail previous reports from Rushmore. FONDA, Ia., March 29---Another tornado swept the south eastern section of Fonda last night which injured four and did damage estimated at one hundred thousand dollars. WORTHINGTON, MINN, March 29-A tornado folowing a day of rain killed three and practically leveled the town of Rushmore to the ground Saturday night. FEONDA, March 29-Six were injured and considerable property damaged by a tornado here yesterday. LONDON, March 29-Lloyd's News attributes the Sinn Feiners with causing several incendiary fires in the vicinity of Newcastle on Tyne where many farms were set ablaze last Saturday night to the tune of several thousand pounds sterling. OLYMPIA, March 29-A formal request for petitions for the recall of governor Hart of Washington because of his action in signing the poll tax law was filed today with the secretary of state by Joseph R. Manning a Seattle Undertaker and Mrs. Geeorge MacLaughlin a prominent club woman of Seattle. SEATTLE, March 29-Charges filed here against Pothier and Rosenbluth were dismissed. E GERMANS ALL SAME BOLSHEVIKI COBLENZ, Germmany, March 28.-A Communist up rising occurred this morning in the Bridgehead area at Montabaur, six miles North Eeast of Ehrenbreitstein. A Riot call was answered by thee Provost Marshal and the American military police were sent to Montabauer to restore order. OYSTER BAY, Marh 28. 1 -William J. Burns, the famous private detective, announced today that he expects to
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LARSON GETS TERM IN PEN Tacoma Bank President Must Serve Time TACOMA, June 13.-Ole Larson, president of the defunct Scandinavian-American bank, was given two sentences of from three to ten years in the state penitentiary, following his conviction on two separate charges of borrowing $10,000 and $6,000 from the bank without proper resolution of the board of directors. The two sentences are to run concurrently. Larson's lawyer told the court that unless Larson is operated on immediately he will die within six months. Notice of appeal to the supreme court was given. Larson's counsel argued that the bank president was not responsible for the bank's collapse, that he had been made the goat. Judge William D. Askren replied that while Larson's conviction may have been due to a certain technicality, nevertheless it was due to failure to observe the statutes that the smash came. The judge told him in effect that if Larson was "the goat," the 12,000 depositors who entrusted their funds to him were also "goats," or victims. Sixteen of the 24 indictments on which Larson was held were dismissed.
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The bank was a member of the federal reserve system, the Seattle Clearing House association and the Washington State Bank Depositors' Guaranty fund. Shrinkage of values during the last year and a half and recent abnormal deposit decreases were given by John P. Duke, state supervisor of banking, as reasons for suspension. Failure of the Scandinavian-American bank of Tacoma several months ago was believed to have been responsible to a large extent for the withdrawal of deposits. The institutions were not connected when the Tacoma bank failed but for a long time had been closely allied. Following the action of the directors in suspending, Supervisor Duke issued a statement in which he absolved the present management from blame and declared that "credit is due it for its earnest and untiring efforts to protect the interests of the depositors and carry the bank over its troubles."
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TUESDAY (TELEGRAPHIC) BELIEVED SCANDINAVIAN AMERICAN BANK WILL PAY NEARLY FULL Seattle, July 5--It is the opinion of conservative bankers that the closed Scandinavian-American bank of Seattle will in time pay up nearly in full. The bank suspended owing depositors about eleven million dollars. The action was decided upon at a meeting of the directors. A run had been in progress on the bank since the failure of the Scandinavian--American Bank of Tacoma, which it originally founded as a branch. John H. Duke. Supervisor of State Banking is in charge of the institution.
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SEEK TO REGAIN BANK DEPOSITS Last Day" Claims Against Scandinavian in Court Whether last day depositors In the BcandinavianAmerican bank of No. aftle, which closed Its doors June 30, 1921, are entitled to have their deposits refunded, or whether all money taken in on the last day may be considered assets of the institution by the state banking supervisor, was to be decided Monday by Superior Judge C. H. Neal. Evidence in a suit brought against the Beandinavian-American bank of Seattle and J. P. Duke, state bank. ing supervisor, by the Washington Shoe Manufacturing company, was being presented to the court. Four teen other claims have been assigned to the Washington Shoe Manufacturing company for the purpose of the test case. Ralph 8. Stacy, vice president of the Union National bank. and prestdent of the Scandinavian-American bank of Seattle at the time of its failure, admitted on the stand that deposits were accepted on June 30, 1921, in the hope that the bank could be saved: but in case negotia tions fell thru, he testified, such deposits were placed in separate envelopes and were not entered on the books, so that they might be returned. Stacy said that failure of the Scandinavian-American bank of Tacoma started a run on the Seattle institution, which resulted in $3. 500,000 being withdrawn. J. 8. Lane, for 25 years cashier of
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NOME DEPOSITORS RECEIVE DIVIDENDS FROM DEFUNCT TACOMA BANK Nome depositors in the Scandinavian American Bank of Tacoma, which suspended payments two years ago were the recipients of ten per cent dividend checks which arrived in the last mail. This is the fifth ten per cent dividend paid by this bank since being taken over by the banking board of the State of Washington for liquidation.
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BANK'S RECEIVER ACCUSES HART OF GRAFTING TACOMA, Wn., May 28 (AP)-F. B. Haskell, jr., a Tacoma banker and receiver for the Scandinavian American Bank, filed in the Superior court today a two hundred page history of the receivership which began January 15, 1921. The document contained one affidavit by Haskell and one by Guy E. Kelly, of Tacoma, former Republican National Committeeman, and a former attorney for the Bank. Kelly in his affidavit said" Governor Hart told him in Kelly's office at Tacoma: "You boys have got to come through." Hart said "he was an old man and was going out of office, and would not have any income. Our fees would be large and more than was needed for ourselves, and we would have to divide with him. He directed me to see Mr. Haskell, the receiver, about the matter." Haskell in his affidavit related a conversation with the former governor in his office at Olympia, when Haskell, Hart and Kelly were present, and reiterated the charges of Kelly. The affidavit declared that Hart stated: "I don't expect any part of your fees, but expect to make the fees large enough SO you boys can give me a sum that will give me something to live on after I retire." Kelly and Haskell in December asked for $115,000 fees, but State Supervisor of Banking disallowed their claim, and Judge Card sustained the supervisor, who said the fees were out of all proportion: to any services which could be rendered.
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CHARGES MADE AGAINST HART IN BANK CASE Two Affidavits Filed Claiming Governor Sought Split in Fees. Forbes B. TACOMA, May 29. Haskell jr., Tacoma banker and receiver of the Scandinavian American Bank, today filed in the Superior Court a 200 page history of his receivership which began January 15, 1921. The history contained one affidavit by Haskell and one by Guy E. Kelly, of Tacoma, former Republican National Committeeman, former attorney for the receiver. Kelly's affidavit said former Governor Louis F. Hart told him in Kelly's office in Tacoma: "We boys will have to come through. Hart said he was an old man and was going out of office and would not have any income and our fees would be large and more than we needed for ourselves and we would have ts divide with him and he directed Kelly, the affidavit said, to see Mr. Haskell at once about the matter. The Haskell affidavit related a with the former Goverin in his conversation nor Olympia office. Hart. Haskell and Kelly were present and the affidavit reiterates the charges of the Kelly affidavit and further declared Hart stated "that he did not expect to take any part of our fees but expected to make the fees large enough so we could pay him a sum that would give him something to live on after he retired." Kelly and Haskell, last December, asked for $150,000 fees but State Supervisor of Banking disallowed the claim and Judge Card sustained the Supervisor. The Haskell report stated Hart sought in September to persuade Haskell to sell the assets of the bank to Putman Brothers, buyers of wrceked banks for $150,000 but the offer was SO ridiculously low that Haskell refused to even consider it. Haskell said he reported the assets were worth a great deal more, that $150.000 had already been realized A representative of Putman Brothers said he was going to see State officials soon about a deal. Hart summoned Haskell and urged the sale declaring liquidation must be closed while he was Governor. Hart. said Haskell, claimed that Minshull, former Supervisor of Banking, would approve whatever fee Hart named.