22453. State Bank (Tenino, WA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
September 21, 1914
Location
Tenino, Washington (46.857, -122.853)

Metadata

Model
gpt-5-mini
Short Digest
364e0e09

Response Measures

None

Description

The State Bank of Tenino failed to open on Sept 21, 1914 after an examiner's inspection; failure attributed to heavy investment in commercial paper and loans to mill/logging interests (bank-specific adverse information). A receiver (Roy A. Langlay) was later appointed (order noted 1915-07-02) and the receiver pursued collections through 1916, indicating permanent closure/receivership.

Events (3)
1. September 21, 1914 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank had invested heavily in commercial paper and financed mill and logging properties; unable to realize on loans when financial stress came.
Newspaper Excerpt
The State Bank at Tenino, owned by the same interests as the two institutions which closed here, also failed to open its doors this morning.
Source
newspapers
2. July 2, 1915 Receivership
Newspaper Excerpt
An order authorising Roy A. Langlay as receiver of the State Bank of Tenino ... was issued by Superior Judge Mitchell Wednesday.
Source
newspapers
3. March 3, 1916 Other
Newspaper Excerpt
Suits were filed ... by Roy A. Langley, receiver of the State Bank of Tenino, to collect on six notes due that institution, upon which no payments have been made.
Source
newspapers

Newspaper Articles (4)
1. September 21, 1914 Daily Capital Journal Salem, OR
Article from Daily Capital Journal, September 21, 1914

Click image to open full size in new tab

Article Text

CENTRALIA BANKS FAIL FOR $1,250,000 Had Loaned Too Much Money to Themselves --- Tenino Bank, Also Fails Centralia, Wash., Sept. 21.-The United States National Bank with deposits of over $1,000,000 and the Union Loan & Thust Company, with deposits of over $250,000, failed to open their doors today following an inspection of the institutions' books by Bank Examiner Lloyd L. Mulit. The heaviest depositor in the banks was the city of Centralia, which had $90,000 on deposit. The closing of the institutions leaves the municipality with but $10,000 cash on hand from its spring tax receipts. The greatest factor in the closing of the doors of the two banks, according to George Dysart. one of the stockholdtrs, was over-confidence on the part of the bank officials in the handling of commercial paper, on which it was found impossible to realize when a financial stress came. It is said that the trouble is directly due to financing mill and logging properties in which the bank people were interested. United States Attorney Clay Allen and Marshal J. M. Boyles are in the city in connection with the closing of the banks, but their mission has not been announced. The closing caused no little excitement but the directors of both institutions assert they will turn over all of their private property and that depositors will be paid in full. The other two Centralia banks were prepared to withstand runs but none developed. The State Bank at Tenino, owned by the same interests as the two institutions which closed here, also failed to open its doors this morning. The failure of the Tenino bank, which is under the jurisdiction of the state bank examiner and not the federal authorities, was largely due, bank officials stated, to the fact that the bank had invested heavily in commercial paper similar to that held by the two local concerns.

2. February 26, 1915 Washington Standard Olympia, WA
Article from Washington Standard, February 26, 1915

Click image to open full size in new tab

Article Text

BANK TANGLE IN COURT Affairs of Local and Centralia Institutions to Be Aired. Bill of comptaint covering three different actions was filed in the federal court at Tacoma Saturday morning by Attorney P. M. Troy of this city on behalf of Receiver F. H. McKinney of the Olympia Bank & Trust company against Receiver C. A. Snowden of the United States National Bank of Centralia, in which Mr. McKinney wants claims against Mr. Snowden amounting to $56,050 settled. In the complaint Mr. McKinney alleges that he has permission from the superior court of Thurston county to bring the action. He declares that W. Dean Hays, cashier of the Olympia bank, acting with Charles Gilchrist, formerly vice president of the Centralia bank, fraudulently misappropriated $36,550 of the funds of the Olympia bank to pay private indebtedness of Mr. Hays to the Centralia bank. This was done without the knowledge of the stockholders, he says. Mr. McKinney has demanded an accounting from Mr. Snowden, but has been refused, he says. The second cause of action alleges that the Olympia bank forwarded $10,000 to the State Bank of Tenino, also defunct, at the request of the United States Bank of Centralia and that credit was not given the Olympia institution. Other wrongful transactions involving smaller sums are alleged. Hays recently was acquitted after trial for alleged embezzlement. Gilchrist is serving a term in the federal penitentiary on McNeil island for violation of the federal banking laws. Receiver McKinney says that if he is able to establish credit for the funds involved in the suit the affairs of the local bank will be straightened out in fairly good shape and without assessing stockholders.

3. July 2, 1915 Washington Standard Olympia, WA
Article from Washington Standard, July 2, 1915

Click image to open full size in new tab

Article Text

SOME NEWS NOTES OF THE CITY Frank M. Kenney, cashier of the Olympia National bank, was in Salem, Ore., this week on business Mrs. C. W. Dubois of Centralia spent several days in Olympia this week visiting her son, Otto Weisinger, and wife. Mrs. O. A. Leslie and daughter, Miss Olive Leslie, left Thursday on a trip to southern California to visit Mrs. Leslie's son Harry. After visiting her brother, County Superintendent L. A. Kibbe, for 10 days, Miss Alice L. Kibbe has gone to Puyallup to attend summer school. Ernest L. Wolf has as his guest his father, H. B. Wolf, wholesale and retail dealer of Boulder, Colo., who expects to be here two or three weeks. Rev. and Mrs. C. S. Morrison and little son went to Seattle this week for a month's visit. They will live at the Trinity church rectory, Rev. W. H. Bliss being away on his vacation. I. V. Rathbun and Mrs. Hettle N. Morgan of Yelm obtained a marriage license at the county auditor's office Wednesday and were later married by Justice Crosby. Mrs. Thomas M. Reed and daughter Constance are now living in the Diven home, having come to Olympia Wednesday after spending the winter in California. .... After living in Olympia for nearly a year, Mr. and Mrs. Fred Grass this week returned to their ranch in the Des Chutes valley near Yelm and will teach next year in the John Longmire school. Mr. Grass was employed in the postoffice while here and was succeeded there by Harold Van Eaton. County Treasurer Fred W. Stocking expects to leave in his auto next Monday on a three weeks' tour of California, accompanied by Mrs. Stocking, Miss Helen Stocking and Miss Dora Petersen. An order authorising Roy A. Langlay as receiver of the State Bank of Tenino to take as his fees 8 per cent on all collections up to $40,000, 6 per cent on collections between $40,000 and $50,000, and 4 per cent on all above $50,000, was issued by Superier Judge Mitchell Wednesday. Mr. and Mrs. Stanton Warburton and son of Tacoma and Judge A. R. Melynoux and son Arthur of Cherokee, Iowa, stopped over in Olympia Tuesday en route to Tacoma from an auto trip to Lake Cushman. Glen Class and Miss Zoya Govat, daughter of Marshal Govat of Tumwater, were married early Wednesday morning by Rev. E. Hopkins, and left immediately with a horse and buggy for Elma to visit relatives. Miss Myrtle Huggett, whose family recently moved to this city, was elected a member of the teaching force of the Olympia schools this week and will probably be assigned to the Westside school. With all of the outside work on the building practically finished, contractors on the $40,000 new home of the Olympia National bank, at Fifth and Main streets, started the interior plastering this week and expect to Saish their work by the middle of next month. J. B. Ransom of Shelton, one of the four Overland Westerners who just finished a two years' trip to the capital of every state, stopped over in Olympia the latter part of last week, on route home. Mrs. Margaret Shaser of Wenatchee, one of Washington's piomears, Is visiting her son, W. 8. Shaser of this city, coming here from Gate and Oakville, where she had been visiting her grandchildren. By defeating Dr. H. W. Partlow last Sunday, Secretary H. L. Whiting

4. March 3, 1916 Washington Standard Olympia, WA
Article from Washington Standard, March 3, 1916

Click image to open full size in new tab

Article Text

Suits were filed in Justice Crosby's court Wednesday by Roy A. Langley, receiver of the State Bank of Tenino, to collect on six notes due that institution, upon which no payments have been made.