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Receiver for Walla Walls Bank. Walla Walla, Dec. 11.-{Special.]-The stockholders of the Walla Walla Savings bank today decided upon Col. Wellington Clark for the appointment of receiver.
22477. Walla Walla Savings bank (Walla Walla, WA)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- state
- Start Date
- December 9, 1893
- Location
- Walla Walla, Washington (46.065, -118.343)
Metadata
- Model
- gpt-5-mini
- Short Digest
8248eae8
Response Measures
None
Description
The Walla Walla Savings Bank closed in December 1893, a receiver was appointed and criminal charges (embezzlement) followed. Articles describe insolvency and inability of depositors to get funds but do not clearly describe a discrete depositor run prior to suspension. Thus this is classified as a suspension leading to permanent closure/receivership.
Events (5)
1.
December 9, 1893
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Bank was insolvent due to large overdrafts/embezzlement by president J. K. Edmiston and worthless collateral; deposits could not be paid on demand leading to closing of doors and suspension.
- Newspaper Excerpt
- depositors had been unable to get their money on demand; the bank 'busted' while I was gone.
- Source
- newspapers
2.
December 11, 1893
Receivership
- Newspaper Excerpt
- Receiver for Walla Walls Bank. Walla Walla, Dec. 11. - The stockholders of the Walla Walla Savings bank today decided upon Col. Wellington Clark for the appointment of receiver. (Seattle Post-Intelligencer, 1893-12-12).
- Source
- newspapers
3.
December 19, 1893
Other
- Newspaper Excerpt
- The failure of the Walla Walla Savings bank... (discussion of deposits and state funds).
- Source
- newspapers
4.
December 31, 1893
Other
- Newspaper Excerpt
- A warrant was today issued for the arrest of J. K. Edmiston... charged with embezzling $30,000 from the defunct Walla Walla Savings bank.
- Source
- newspapers
5.
February 24, 1894
Other
- Newspaper Excerpt
- F. W. Paine, receiver of the Walla Walla Savings bank, filed petition setting forth that J. K. Edmiston... charged with an overdraft of $30,000...
- Source
- newspapers
Newspaper Articles (11)
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WILL NOT LOSE ACENT Failure of Walla Walla Bank Does Not Affect State Funds. WARDEN COBLENTZ'S ACTION. Deposits the Small Balance in the Defunct Bank in a Selvent Institution-The Lying Reports. The state will not lose a cent by the failure of the Walla Walla Savings bank, notwithstanding reports to the contrary. Ever since his removal from office exPenitentiary Commissioner P. B. Johnson, of Walla Walla, has been concocting stories reflecting on the governor, the members of the board and the other officers of the penitentiary. These reports are printed in the two Oregon papers, Spokane Review and Portland Oregonian, and the Tacoma Ledger. One recent publication, utterly false, was to the effect that the Oregon Improvement Company was discriminated against in the awarding of penitentiary wood contracts because the company opposed Senator Allen's re-election last year. The failure of the Walla Walla Savings bank was a godsend to Mr. Johnson. It permitted his venom to operate in two directions, by attacking both Seattle and the penitentiary commissioners. First he insisted that bad investments in Seattle had wrecked the bank. Then he declared in the Oregon and Tacoma papers that the state penitentiary revolving fund, more than $70,000, had been, under pressure from Gov. McGraw, deposited in the Walla Walla Savings bank, and was consequently tied up in the suspension; all except & portion which Commissioner Nye, knowing the condition of the bank, illicitly withdrew on the Saturday night before the failure. The latter accusation Mr. Nye has already branded as false. As to the amount of money deposited in the Walla Walla Savings bank the following letter received by Gov. McGraw yesterday is interesting: "STATE PENITENTIARY, "Walla Walla, Dec. 16, 1893. "The Hon. John H. McGraw, OlympiaDear Sir: As soon as I arrived from Portland yesterday I opened an account at the First National bank of this place and deposited with them the money I lost by the failure of the Walla Walla Savings bank. viz., $520.45, thereby saving the people of this great state the $70,000 or $80,000 reported by the Spokane Review to be lost by the failure. The bank 'busted' while I was gone. The revolving fund is intact, and the jute mill will not have to suspend because of the failure. Respectfully, "J. H. COBLENTZ, Warden."
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Another Warrant Out for the Walla Walla Banker. SUICIDE AT PORT TOWNSEND. The Seal Agreement Between England and Russia Continued. School Director Hatten, of Anscortes. Thrifty Business Man but a Poor Speller-Large Decrease in the Metal Production of Idaho. / WALLA WALLA, Dec. SA-A warrant was today issued for the arrest ot J. K. Edimiston on a charge of embezzling $30,000 from the defunct Walia Walla Savings bank. Edmiston was president of the bank and also of the Security Savings bank, Seattle, which suspended the same day. The statement of the receiver shows that Edmiston's personal overdraft was $30,501, and that the Security bank owed the suspended bank $33,899. Edmiston was arrested a week ago today at Seattle on a charge of receiving deposits for the Walla Walls bank when he knew it to be insolvent. Upon being brought back here he gave the $2,000 bond required and departed last Tuesday morning. saying he was going back to Heattle. It has since been learned that he has not been sera in that place.
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Fugitive Walla Walla Banker Arrested in Idaho. THE PORT ANGELES LOT SALE. Au Award of the State Capitol Plans Expected Soon. Invalidity of Certain San Juan County Bonds-Monteith & Seitenbach, Spokane Dry Goods Merchants, AssignA Party Goes to Seek Cook Colgate. WALTA WATTA, Jan. 2-Deputy Sheriff Ellingsworth returned tonight from Harrisor, Idaho, having in custody J. K. Edmiston, who was arrested there Monday, charged with embezzling about $30,000 from the defunct Walla Walla Savings bank, of which he was president. Edmiston states that he had wired his attorney in Seattle of his intention to return to Walla Walla. He was brought here and locked up in jail. Tomorrow Fitzhugh will resign as receiver and a new one will be appointed.
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tempted to kill Gov. Renfrow, of Oklahoma, because he was not given an official position. CLASSIFED returns show that in 1893 in the United failures, with manufacturing there were States in liabilities legiti- 8,226 of 10,683 failures mate with liabilities of and 302 896, $164,707,449; trade, other failures, including $85,527, liabilibrokers and speculators with ties of $36,662,735. THE total duties collected at the New house for 1893 amounted York to custom total from at $218,850,234. In 1892 the duties was 8108,744,125.27 on merchandise valued at $247,556,846. FAILURES and suspensions of all kinds in Louisville, Ky., for the year 1893 aggregate 140, resulting in actual liabilities of $4,027,358.54 AT Broadway, Va., a negro named Edward Williams was publicly given 100 lashed. CHARLES BANKS (colored) was executed at Warrensburg. Mo., for the murder of Isaac Palmer, anothernegro August 29, 1892. on R. G. DUN'S weekly review of trade with the mills crowded and all business ever says: known, "Starting stimulated largest with by work trade high the year 1893 has of trade, in den hopes, shrinkage proved, commercial industries. in suddisasters and depression of the worst for fifty years. The year closes with the prices of many prodnets the lowest ever known, with millions of workers seeking in vain for work. and with charity laboring in to keep back suffering and starvation our cities." DURING the absence of their grandmother Lena West and Landon Bailey were burned to death at Sedalia, Mo. THE minority members of the foreign affairs committee in the house bitterly attacked Mr. Blount's Hawaiian policy in their report. IN 1893 the number of persons who committed suicide in the United States was 4,436, against 3,860 in the previous year. THE biggest trust ever organized has been almost perfected by the organization of the saloonkeepers of Ohio. ST. LOUIS officers caught two counterfeiters with a complete outfit for the manufacture of bogus money. Six dead bodies were recovered from the ruins by fire of a Buffalo (N. Y.) boarding-house of the three principal in Idaho $1,645,000; silver. metals was: THE Gold, value produced during $1,602,000; against 1893 lead. $775,000; total, $8,922,000; a total of $7,068,000 in 1892. ALBERT SCHOCK, of Chicago, won the six-day bicycle race in New York, beating all records with 1,600 miles. IN the United States $33,319,866 were given to charity, education and popular entertainment during the year 1893. J. W. BURKE & Co., publishers at Macon, Ga., failed for $100,000. THE receipts of the government for the first six months of the fiscal year were $155,431,314 and the expenditures $189,500,032, a deficiency of receipts over expendituresof $34,068,718. of Lucy Stone, world-renowned thropist, THE body thinker the philan- and defender of the rights of woman, whose death occurred at Boston October 18 last, was cremated in Boston. J. K. EDMISTON was arrested on the charge of embezzling $30,000 from the suspended Walla Walla (Wash.) Savings bank, of which he was president. CRAZY from drink John Cummings locked himself and family in a burning Omaha house and four perished. THE total number of post offices in operation in the United States 68, 806. DURING the year 1893 78,839,233 pieces of were coined at and his three sons A money NEGRO Philadelphia. switches were by whipped with hickory masked men at Waco, Tex., for maiming live stock. A DYNAMITE petard was exploded outside the parliament house at Athens, Greece, doing great damage to property. AFTER twenty-three years of milence, caused by terror, Mrs. Kuertr, living her near Valparaiso, Ind., recov red speech. THE total number of musders comin the United States in 791 in 1892 mitted 6,615, against 1893 The 1893 num- was 126, ber of legal executions in was against 107 in 1892, and the lynchings numbered 200. d THE output of iron ore in the Lake Superior region in 1893 was 6,135,000 tons, against 9,074,293 tons the previous year. So FAR as reported 6,085 lives were lost on the ocean and 215 on the lakes and rivers of this country in 1893, against 3,346 in 1892. e THE loss of life by railroad disasters g in the Urited States in 1893 was 4.603, against 4,428 in 1892. o THE losses by fire in the United States e for the year 1893 aggregated $188,356, 940, showing a large increase as compared with the losses of 1892. g Globe theater and other the in Boston were buildings THE several burned, 2 loss being $500,000. WHILE Mrs. Phoebe Johnson and be n John Cleaver were standing up to married in Paterson, N.J., the woman died of heart disease. lo t PERSONAL AND POLITICAL
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EDMISTON WILL GIVE HIS NOTE Receiver Palne Says It Is the Best Way to Settle the Matter. WALLA WALLA, Feb. 24.-F. W. Paine, receiver of the Walla Walla Savings bank, today filed in the superior court a petition setting forth that J. K. Eamiston, president, charged with an overdraft of $30.000 on said bank, has as security therefor, a deed to some land which is subject to prior mortgage, and also an order on the Security Savings bank of Seattle. Parties holding claims against the Walla Walla Savings bank to the amount of $2,000 are willing to surrender said claims to the bauk upon condition that they be credited upon the account of Edmiston and the account reduced to that ( xtent. Edmiston offers to give in settlement for his balance of account two promissory notes, each for the sum of $5,000. Petitioner believes it to be for the best interest of the creditors and stockholders that the account of Edmiston be settled upon that basis. Edmiston's trial on a charge of larceny of $28,000 from the bank is set for trial Monday, but in all probability will be postponed for several weeks.
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EDMISTON WILL GIVE HIS NOTE Receiver Paine Says It Is the Best Way to Settle the Matter. Walla Walla, Feb. 24.-F. W. Paine, receiver of the Walla Walla Savings bank, today filed in the superior court a petition setting forth that J. K. Eamiston, president, charged with an overdraft of $30,000 on said bank, has as security therefor, a deed to some land which is subject to prior mortgage, and also an order on the Security Savings bank of Seattle. Parties holding claims against the Walla Walla Savings bank to the amount of $2,000 are willing to surrender said claims to the bank upon condition that they be credited upon the account of Edmiston and the account reduced to that extent. Edmiston offers to give in settlement for his balance of account two promissory notes, each for the sum of $5,000. Petitioner believes it to be for the best interest of the creditors and stockholders that the account of Edmiston be settled upon that basis. Edmiston's trial on a charge of larceny of $28,000 from the bank is set for trial Monday, but in all probability will be postponed for several weeks.
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# Edmiston's Proposition. F. W. Paine, receiver of the Walla Walla Savings bank, has filed in the superior court a petition setting forth that J. K. Edmiston, president, is charged with an overdraft of $30,000; that the said bank has, as security therefor, a deed to some land which is subject to a prior mortgage, and also an order on the Security Savings bank, of Seattle. Parties holding claims against the Walla Walla savings bank to the amount of $20,000 are willing to surrender the claims to the bank upon condition that they be credited on the account of Edmiston and the account reduced to that extent. Edmiston offers to give in settlement for the balance of the account two promissory notes, each for the sum of $5000. The petitioner believes it to be for the best interest of creditors and stockholders that the account of Edmiston be settled upon that basis.
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# Warm Weather Debility All who feel weak and debilitated by the heat should use Paine's Celery Compound. It gives strength and health. We sell large quantities of it. STEWART & HOLMES DRUG COMP'Y. bank July 18, 1892, with interest to date of presentment. On investigation the receiver found that Wetmore never had any credit on the books of the bank, and does not appear to have ever been a depositor; therefore the claim is rejected. Mr. Hastings says that he has notified several corporations and individuals holding collateral securities for payment of indebtedness due from the bank that he will require them to exhaust their collateral securities before sharing in the payment of any dividends that may be made. Mr. Hastings also states that owing to the fact that a large portion of bills receivable in his hands are secured by second and first mortgages which equal the value of the property; also owing to the depressed state of financial affairs the progress made in converting the assets into cash has been and must be for some time to come very slow, consequently no dividend can be paid at present. Among the claims filed and commented on by the receiver are the following: Claims of C. M. Anderson and Corwin S. Shank on a certificate of deposit July 24, 1893, for $1,050, both claims relating to the same transaction and the same certificate. The proof of C. M. Anderson claimed priority. His allegations were incorrect and priority was denied, but the amount allowed, the two proofs being treated as one. Claim of Robert Livingston, $1,348.75, in which claim was made for preference because the money was trust funds. The claim was allowed, but preference and priority were denied. Claim of F. W. Paine for $33,899.31 was allowed for $12,974.19. Claim of H. H. A. Hastings for $471.66, and open account and certificate of deposit. Submitted to the court. In his summary, the receiver says his cash on hand and receipts to May 1 were $6,214.33; expenditures, $3,836.77; cash on hand May 1, 1894, $2,377.56. The Catholic Knights and Women's Relief Corps, of Walla Walla, are suing J. K. Edmiston for money deposited in the Walla Walla Savings bank. There are now six criminal charges against Edmiston at Walla Walla.
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# IN THE TOILS OF LAW The Cases Against Banker Edmiston, of Walla Walla, Now Being Heard. CLOUDS OF WITNESSES IN ATTENDANCE A Trial That is Replete With Inter- est and That is Being Closely Con- tested by Some of the Best Attor- neys of the State. The first of the six cases against Ban- ker J. K. Edmiston, of Walla Walla and Seattle, was called in the superior court, before Judge Graves, on Tuesday after- noon. Attorneys R. H. Ormsbee and Miles Poindexter, of Walla Walla, ap- peared for the prosecution and Attorneys J. L. Sharpstein and Wellington Clark, of Walla Walla, and H. J. Snively, of this city, for the defense. There are 24 witnesses present from Walla Walla and a number from Seattle. Much interest is being taken in the case and every point closely contested. The charge is accept- ing money as president and manager of the Walla Walla Savings bank, with a full knowledge of the insolvency of that institution. The jurors, as accepted, are Robert Dunn, J. T. Foster, W. H. Steele, Willis Smith. A. F. Switzer, John Mall, A. E. Cook, W. D. Beck, D. R. Fish, Frank Sinclair, J. R. Gladden and Dun can Scott. After their impanelment the jurors, at the quest of the prosecution, were placed in charge of a bailiff who was instructed to keep them together and away from com- munication with the outer world. After the jury had been sworn to try the case, Attorney Ormsbee made the opening address for the prosecution in which he said that the state would show that the Walla Walla Savings bank had been insolvent for some time prior to the closing of its doors and that J. K. Edmis- ton knew this fact, and had resorted to most extraordinary and even criminal means to raise money for the purpose of bolstering up its fallen fortunes; that de- positors had been unable to get their money on demand, and from the evidence that would be presented the jury would conclude that the failure of the bank was prearranged and planned by Edmiston. The defense has as yet introduced no testimony. When it does it will endeavor to show the utter lack of knowledge on the part of Mr. Edmiston that the bank was insolvent or about to become so. His attorneys maintain that he is to be made a scapegoat by the prosecution; that he was approached by certain of the bank officials prior and immediately after the closing of the doors of that institution, and asked to leave the county; that he was not a party to any of the fraudulent transactions of the bank; and that he paid $75,000 of the indebtedness of the said bank in the two short months he served as president and manager. They allege that, during the panic and hard times of '93, the health of Manager Stine gave way, and that he threw off the whole of his responsibility and left Walla Walla; then Mr. Fitzhugh took charge, serving from July until October as manager-he also failing to meet the requirements of the case. In October Mr. Edmiston was called from Seattle; and he, knowing nothing of the stability of the securities of the bank, and counting upon its ap- parent resources to bring it out all right with proper management, was met with a wheat crop failure which ruined values and rendered the corporation's collateral valueless-and thrust upon him the ap- probrium and abuse of connivance in de- frauding the depositors of their money. It will, his attorneys contend, be shown that it was absolutely impossible for Mr. Edmiston to have gained any idea of mortgage-real or chattel-values, in the 69 days of his residence in Walla Walla prior to the bank's closing; and the con- tention will be made that an innocent man is to be branded as dishonest and untrustworthy, when in fact the guilty are to be allowed to go unpunished. Among the witnesses present are C E Nye, Geo W Bradbury, F W Paine, F M Kendall, Mr and Mrs H B Gregg, G C Miller, W A Ritz, H S Jackson, J M Baldwin, W H Stine, Wm Stine, Thos S Page, Ben Wolf, J E Thomas, H V Ful- ler, Dave Goldstein, A E King, R R Red- ford, John J Austin, C L Whitney and wife, Henry Tobin, H P Estes, J L Stub- blefield, N S Gholson and Leon Phipps, of Walla Walla; G M Thompson, F B Black, E Bowden, M M Carraher, Everett Smith, Henry Carstens, G S Logan and E B Wallace, of Seattle. Judge Graves has ruled that the books of the bank can be received in evidence, and as THE HERALD goes to press Re- ceiver F. W. Paine, one of the important witnesses for the prosecution, is on the stand to give evidence as to the value of the notes and other securities held by the bank as collateral. The first witness called was bookkeeper Wil- liam Stine, whose evidence was objected to, it being alleged that much of it was of matter with which he was not familiar, he not having made certain entries introduced; and because, certain citations being made, books of a corpo- ration cannot be introduced in evidence against any officer of that corporation. The court sus- tained the objection. Witness was then cross- examined, prosecution reserving the right to re- call him. Attorney Poindexter charged that Attorney Sharpstein, for the defense, had advised Book- keeper Reeves not to respond to the subpæna issued, because it was for a former trial. Sharpstein denied this. For this reason wit- ness was not present. The prosecution offered order from the Walla Walla court appointing receiver for the bank, which was objected to by the defense on the grounds that Edmiston was not a party to the appointment, therefore the appointment could have no bearing in the case. The objection was sustained. Mrs. C. L. Whitney, of Walla Walla, was called as the first witness. She had made a deposit of $40 at 12:30 p. m. on December 9, and had never received that money from the bank. Henry Tobin, who, after the bank's failure, had taken five ineffectual shots at the defend- ant, testified that he had $4200 deposited in the bank previous to December 9 for which he had a certificate of deposit. Did not have the certifi- cate now. The certificate was due December 7. Went to the bank with it while Edmiston and Cashier Phipps were there. Witness gave latter a check and said he wanted his money. Cash- ier looked at it and then called Edmiston, who said it was a nice day. Witness said he wanted his money; that he was in debt and needed cash to meet his claims. Edmiston told him the bank was short and that it would be an accom- modation to leave the money for a day or two- that he expected funds from Seattle on Monday. Witness left his certificate of deposit and his bank book with Edmiston, and told him he would call on Monday for his money. On Mon- day he was told the bank had lost all its money and could not pay claims. On cross-examina- tion the witness testified that he had tried "very hard" to kill Edmiston, having fired five shots at him. He reiterated his statement that both Phipps and Edmiston were in the bank when he demanded his money. The court had to
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secured in some way, and Mr. Edmiston took notes of the bank and turned them over to me, and I put them in an envelope and deposited them in the vault for King. Several days prior to the closing of the doors of the bank the actual cash on hand was very low, never over $1,000. One morning when they opened up for business they had on hand $80 in gold. some small loose silver and some mutilated coin: and on this particular morning J. P. Kent, who had $800 deposited, came in for the purpose, I presumed, of checking against the amount. Instead, however, he deposited $500 more. The bank owed the Chase National bank of New York $10,000: London and San Francisco bank of Portland $35,000; National Bank of Commerce, $4,000; Bank of British Columbia, $10,000; Edmiston's personal overdraft was $33,000. I was not in consultation with Messrs. Poindexter and Ormsbee last night, and no indncement has been given me to testify in this manner. Upon cross-examination witness stated that at one time they owed the San Francisco bank nothing, and for two years not over $4,000. Relative to the fraudulent mortgages witness refused to answer, not wishing to commit himself. Apparent assets of the bank were $400,000: liabilities $300,000-estimated by Stine: assets consisted of notes: on the testimony of witness as to values of these notes, it was held by the court that witness should be familir with each note before testimony could be accepted. At 9:30 o'clock this morning Cashier Phipps was put on re-direct examination, stating in substance as follows: Stine left the bank to go to California in June, Edmiston being in the bank at the time. Edmiston then went to Seattle, and a daily report of the condition, resources, etc., of the bank was sent to him by me-something never done before. He frequently came over from Seattle and ordered changes in the manner of conducting the affairs of the bank. Among the asset notes of the bank were: Buffum Bros., $25,000, worthless; Gilleam Bros. & Reeves, $20,000, worthless: J. H. Kelly, $8,000, worthless. On cross-examination he said that he came from California to testify; and the defense scored a point when he reluctantly admitted that, while he had not been promised immunity from prosecution. his father had told him that he had effected a general arrangement that he should not be prosecuted. Attorney R. H. Ormsbee went on the stand on request of the prosecution to endeavor to show that defendant or his attorneys had kept Bookkeeper Reeves away from court; but the defense cleverly obstructed his every statement by interposing objections which were sustained, and the attorney took his seat after accomplishing nothing. Mrs. Whitney was recalled and her bank book, showing sundry deposits, offered in evidence. The balance of this morning's session was taken up with the testimony of F. W. Kendall, a banker, who was employed by Mr. Paine while he was receiver of the Walla Walla Savings bank, about the middle of January, 1894. He began his testimony with statements as to the relative values of certain notes classed as securities by the bank. The defense put in objection after objection as to admitting his evidence, he not being well enough informed as to specific possessions of mortgagors to state their responsibility. Judge Graves' rulings to these objections were mainly for the defense. Mr. Kendall was the last witness before the noon recess.