American Bank (Spokane, WA)

Episode Information

Episode UID
28001071588
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
2800107 routing
Routing Number
28-0010
Start Date
April 15, 1932
Location
Spokane, Washington (47.659, -117.426)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ba6c5b7faf7887c9

Response Measures

None

Description

State banking department took charge and a liquidator was appointed; officers later criminally charged.

Events (4)
1. April 15, 1932 Suspension
Cause
Government Action
Cause Details
State Banking Department took charge of the American Bank and it closed on April 15, 1932.
Newspaper Excerpt
The State Banking Department has taken affairs the American Bank here ... The Bank ... closed April 15.
Source
newspapers
2. April 26, 1932 Receivership
Newspaper Excerpt
State banking department officials Monday began to accept filing of claims ... The American bank also closed April 15 ... liquidator in charge, according to Harry S. Wilson.
Source
newspapers
3. June 27, 1932 Other
Newspaper Excerpt
Release of the American bank from its lease on its present building was sought Friday by Mr. Wilson in petition to the superior court.
Source
newspapers
4. August 26, 1932 Other
Newspaper Excerpt
Prosecuting Attorney ... filed charges against Clyde Johnson, president, and others in connection with the failure of the American.
Source
newspapers

Newspaper Articles (11)
1. April 15, 1932 The Atlanta Journal Atlanta, GA
Article from The Atlanta Journal, April 15, 1932

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Article Text

Bank Fails to Open SPOKANE Wash. April The State Banking Department has taken affairs the American Bank here dation and will open Friday. Directors SpoState with announced their suspend The Bank posits about the has capital surplus The State Bank $290,000 capital of Tardy Bid Wins Contract TON, Wednesday's bid Algernon post was opening Thursday at Hanson when was time have here before bids called building and marble $175,247 to sandstone and Alabama firm's figures and respectively. Foreign Market Summary

2. April 26, 1932 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, April 26, 1932

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Article Text

ACCEPT DEPOSITORS CLAIMS State Bank Acceptances Will Be Had for 10 Days. State banking department officials Monday began to accept filing of claims and creditors of the Spokane State bank located on North Division. The bank closed April 15 with deposits of about $275,000. Depositors will have 90 days from Monday in which file claims. No dividend can be paid before this Claims will first be accepted next Monday from depositors and creditors the American bank, according to Harry S. Wilson. liquidator in charge. American bank also closed April 15. It had deposits of State banking department activities at the Wall Street bank are being held up pending efforts to reorganize and reopen the bank.

3. June 25, 1932 The Spokane Press Spokane, WA
Article from The Spokane Press, June 25, 1932

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Article Text

Moves Headquarters of Bank Receivers One central headquarters for all banks, in charge of Harry Will son, state liquidator, will be established as soon as arrangements can be made according to Mr. Wilson. is probable that quarters will be selected in either the Spokane Sav. ings Bank building the Wall Street Bank building Release the American bank from its lease its present building was sought Friday by Mr. Wilson in petition to the superior court. The Press, by carrier, 10c per week

4. June 25, 1932 The Spokane Press Spokane, WA
Article from The Spokane Press, June 25, 1932

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Article Text

Moves Headquarters of Bank Receivers One central headquarters for all banks, in charge of Harry Wilson, liquidator, will be established as soon as can be made, according to Mr. Wilson is that quarters will be selected in either the Spokane Sav ings Bank building the Wall Street Bank building Release of the American bank from its lease on its present building was sought Friday by Mr. Wilson in petition to the superior court. The Press. by carrier, 10c per week

5. June 27, 1932 The Spokane Press Spokane, WA
Article from The Spokane Press, June 27, 1932

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Article Text

CANCEL LEASE ON BUILDING Move Will Mean Big Saving to American Bank, Says Receiver. The petition to the superior court seeking of the lease which the American bank held on the present building signed today Judge Leavy. Under terms. the bank will pay the Peyton building $1500 for the three months of occupancy, from the closing of the August when the cancellation take effect Harry Wilson. who has charge the liquidation stated this mornthat headquarters would be moved either the Wall Street the Spokane Savings bank the Standard Stock Exchange build. dependent in large extent upon the success of the reorganiza tion moves the two banks The lease that was cancelled have run for two figure $925 that the of the cancel lation means considerable sav ing, Mr. Wilson pointed out.

6. June 27, 1932 The Spokane Press Spokane, WA
Article from The Spokane Press, June 27, 1932

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Article Text

ON BUILDING Move Will Mean Big Saving to American Bank, Says Receiver. The petition to the superior court seeking cancellation lease which the American bank held the present building signed today Judge der the the bank will $1500 three from closing of the institution August the cancellation effect Wilson, charge the this morn headquarters would moved either Wall Street bank. the Spokane bank the Stock Exchange build ing. dependent large extent the the upon tion moves two banks to have for figure $925 that the securing of the cancel lation means considerable ing. Mr. Wilson pointed

7. August 26, 1932 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, August 26, 1932

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Article Text

All Closed Banks Be Investigated to All closed banks in Spokane will be investigated Prosecuting Attorney Charles Greenough. The Savings United Hillyard Spokane State bank Spokane Union Park bank and Community State bank of DishWall Street all will come under the prosecutor's scrutiny to find any particular in any one of these do expect intend the investigation begun at the American bank but carry into all of the other banks failed this said Mr. failure of these other banks due. in at least, to the feel the want to find out as far as possible just what failure of the has been in the and what the causes were for the banking situation these "If must make sure there never is any repetition of all we this deplorable situation in the future. will from California to stand trial on the American Clyde Johnson return bank charge filed against him here yesterday State supreme court decisions similar is indicated will be invoked as the principal defense of Mr. Johnson, former president of the defunct American; B. McBride, vice president, Arnold Gleason, cashier: all three charged accepting deposits at the bank when they "had good reason to believe" the institution was "unsafe and These are today's important developments in the charge filed here yesthe three former officers the which closed terday involving and John Davies, director. Mr. Davies is charged with April cessive from the will be Spokane by September or the following Mr. in son told Sheriff Miles over telephone from Beverly Hills. Cal., home his brother-in-law, James Dickason, Over long-distance to the Chronicle, Mr. Johnson said he had no statement to make. He indicated, however, his defense would include calling upon the preme court decisions in previous similar cases. These decisions state, in substance, bank officials have right to keep institution open continue to accept deposits in the face of insolvency, provided there is any possible chance of reestablishing solvency. said the state will be ready with its cases against all four Mr. Greenough men some time in October.

8. August 26, 1932 The Spokane Press Spokane, WA
Article from The Spokane Press, August 26, 1932

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Article Text

INVESTIGATION WILL BE MADE GREENOUGH No Longer Reason to Delay Probe of Financial Affairs, Is Statement. mean to make a complete investigation of the Spokane Savings bank just as soon as possible,' said Prosecuting Attorney C. Greenough Friday. don't know what we'll find there, SO I'm not prepared to say what action will be taken after the investigation. Greenough, who Thursday filed criminal information issued warrants against John Davies, director: Clyde Johnson, president; E. McBride, vice president, and Arnold Gleason, cashier the American bank, said that he had delayed arrests the American bank because of the effort being made reorganize the Spo kane Savings bank that savings bank being liquidated, there no reason to delay any longer. Nor there reason delay an investigation of the savings bank.' Greenough refused to state whether not there would any further arrests American bank officials, but said that he feels that the investigation proceeded disclosure might made that would warrant such arrests In regard the men already rested Greenough said the "State should get case ready for trial in expect the defendants will JOHNSON COMING FROM Davies and posted bonds and McBride been released his recognizance. Greenough said that Johnson, had asked little time, and that he will allow him get here. bonds the defend said Greenough. feel sure they will be here to answer charges. Greenough characterized the American bank situation "one of the worst messes" that has occurred in Spokane.

9. January 13, 1933 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, January 13, 1933

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LOSE PROTECTION ON STATE FUNDS Unable to Recover on $44,000 Surety Bond Covering American Deposit. AUDITOR STAFF CHANGES Expect Several East Washington Men to Be by Demo Official. By Staff Representative. gases OLYMPIA, Wash., Jan. 12-The state has tied up in the American bank at Spokane and unable to recover on surety bond supposed to protect that amount. This situation due to the Union Indemnity company New Orleans going into receivership last week. When the American bank closed April 15, 1932, the state had $280,000 on deposit in This was protected partly by securities put up with the state as collateral and partly by surety bonds written by six companies. The state treasurer's records reveal that the state sold the securities for $160,326, leaving $119,673, plus interest, collect. Five bond companies paid their power. quota of this $119,673, leaving $49,unpaid. 10 per cent dividend declared by the bank receiver brought down to This the first time in the memory of state treasury officials that company bonding state funds in banks has failed to pay. New Auditor's Staff. Few in the state auditor's department will be retained by the auditor, Cliff Yelle Colfax, democrat. Some of the retiring employees are eastern Washington men. not certain that who are named this story will go out, but most of them will. One of the men Spokane will remember is F. G. Whaley, the late Fred J. Whaley treasurer the Cowles Publishing company 34 years. Mr. Whaley aminer of public utilities. He has the auditor's office 15 years. Tatro, former deputy auditor of Spokane county, who is chief accountant the office, will succeeded by Clancy of Dayton, auditor of county Tatro left Spokane in March, 1910. Bassett of Spokane, former state senator, an examiner in the municipal He checks affairs of Spokane city and towns of WhitStevens and Pend Oreille counties. D. Brown of Spokane is examiner of affairs. Ira Partner, of Tacoma, is former man He was with the water department. Auditor Clausen staying at home, suffering from neuritis When his successor takes office, Mr. Clausen will go California. When the new tax commission is appointed, B. F. Rupert of Prosser for Washington, fieldman may be affected. Mr. Rupert is former assessor of Benton county. Solve Housing Problem. The housing problem was solved by Senator Henry Foss and George Miller, reporter for the Tacoma unique way Foss, who operates and barges, brought comfortable 60-foot cabin cruiser to Olympia, docked in convenient spot, and with Miller making his during the session. He employs caretaker The men prepare their own breakfast. Seen at the Hotels. Seen at the hotels were Thomas G. Aston of the Washington Water Power company, Spokane; John Dorn Seattle, formerly Stone & Webster, who is trying to make other connections; M. M. Mattison of Seattle, former newspaper man, now representing the republican state committee: Dave Botting Seattle, manager of Assoclated Industries; Thomas Hedges of Waterville, Fred Chamberlain of Puyallup, Ira Shea Cheney Charles Hodde of Colville, representing the State Grange: B. Cox of Washington Mutual Savings bank; Charles Baker of Walla Walla, representing the Washington Farm Bureau. Township Rule Assalled. The fourth biennial report of the state tax commission, just published, launches another attack on township assessment Only two counties in the state are burdened with township organization, Spokane being one and Whatcom the other. The tax commission says: "In two counties the system of asby township assessors prevalls. This system was elected by the voters of these counties under statutory and has proved very insatisfactory in Generally, the made by these officials are determined without proper consideration of their relation to the assessments in other townships in their county or to those in other counties or throughout the state. "Too often township vie with each other in making low assessments order to gain tax advantages favorable to their districts. The intended this system by county assessors has proved The county assessor's to the system has become advisory rather weight of tax authority against this system is It should be abandoned in this state and, since the office of township is statutory office, this can readily be done. We that township assessment and township review of assessments be abolished.

10. April 8, 1933 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, April 8, 1933

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AMERICAN BANK SURETY BOND IS CENTER SUIT Civil suit for $53,250. the full amount of two surety bonds protecting the American bank from losses sustained through operations of any of its officers directors, whether intentional or not, was filed in superior court today by Howard H. Hansen, as against the American Bonding company. Names of of the officers and directors including Clyde Johnson, president. and Davies Charles P. Lund. directors. now on on criminal charges, are listed. Other officers and who did not owe the bank are not cited. Doesn't Cover Loss. Losses far exceed the amount of the but no more than the bonded sum can be sued for. S. Wilson, liquidator in charge here, explained. The suit is expected to attract wide attention in that reports have been current for weeks that group of depositors was planning civil suit against all officers and directors for recovery of all loss them over and above the final returns from the liquidation. The formal complaint filed today gives detailed figures of due from the 12 persons named when the bank suspended operations, as follows: John Davies, director, $200,000; Charles P. Lund, director, $63,350.48; C. Dahn, vice president, $50.000; A. Gleason, cashier, $49.917.91: J. D. Leigh, vice president, $49,910.36; E. B. McBride, vice president, $42 T. Maurice Ahlquist, $24,750; M. O. Hatch, $5150; Cooper, B. Hebert, $15,000, and R. K. Sollid, $35,000. Other Indebtedness The complaint also sets forth that Johnson Davies and Lund were indebted to the bank in the sum $161,150 through the Assets Realization company, on December 3, 1930, and that Davies was indebted to the bank in the sum of $100,000 on December 31, total of $50,000. the full amount the original issued by the American company Febon ruary 15. 1930, asked on of the In addition, interest at per cent is asked.

11. April 9, 1933 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, April 9, 1933

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SUE BONDING FOR BANK-LOSSES American Bank Liquidator Asks $53,250 From American Bonding Concern. 12 DIRECTORS LISTED In Addition, Sum of 8650 Each Is Demanded on Account of Four Chief Officers. Civil suit for the full amount two surety bonds protecting the American bank from losses through operations of any of its or whether intentional or was filed in court Saturday by Howard H. Hansen, against the American Names 12 of the officers and rectors, Johnson, and Davies and Charles P. Lund, now trial on charges, are listed Other officers and directors who did not owe the bank are not cited. Doesn't Cover Loss. Losses far exceed the amount of the but no than the of bonded be sued for, Harry S. liquidator in charge here. explained. The suit is expected to attract wide attention. that reports have been current for weeks that group of positors was planning civil suit against all officers and directors for They recovery all loss to them and above final returns from the The formal complaint filed Saturday gives detailed figures of amounts due from the 12 persons named when the bank suspended operations, follows: Clyde Johnson, president, and John Davies, director, ity Charles R. Dahn, vice president, cashier, Leigh, vice and McBride, vice president, Maurice M. der Hebert, $15,000, and R. K. Sol- ers. lid, $35,000. Other Indebtedness. The complaint also sets forth that Davies and Lund were debted to the bank in the sum through the Assets Realization company, December 1930, that Davies was indebted the bank in the sum of on December total of the full amount the original bond issued by the American company on February 15, asked on the In interest at per cent asked.