Spokane State Bank (Spokane, WA)

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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.

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All Closed Banks to Be Investigated

All closed banks in Spokane will be investigated by Prosecuting Attorney Charles Greenough The Spokane Savings bank. United Hillyard bank, Spokane State bank. Wall Street bank. Union Park bank and Community State bank of Dishman all will come under the prosecutor's scrutiny. "I do not expect to find any particular wrongdoing in any one of these banks, but intend to carry the investigation begun the American bank into all of the other banks that failed this spring," said Mr. Greenough "I feel the failure of these other banks was due. in part at least, to the failure of the American. want to find out as far as possible just what the banking situation has been in the city, and what the causes for these "If at all possible, we must make sure there never is any repetition of this deplorable situation in the future." Clyde Johnson will return from California to stand trial on the American bank charge filed against him here yesterday. State supreme court decisions in previous similar cases, it is indicated. will be invoked as the principal defense of Mr. Johnson, former president of the defunct American; E. B. McBride, a vice president, and Arnold Gleason, cashier; all three charged with accepting deposits at the bank when they "had good reason to believe" the institution was "unsafe and insolvent.' These are today's important developments in the charge filed here yesterday involving the three former officers of the American, which closed April 15, and John F. Davies, director. Mr. Davies is charged with excessive borrowing from the bank. "I will be in Spokane by September or the following day." Mr. Johnson told Sheriff Miles over long-distance telephone from Beverly Hills Cal., home of his brother-in-law, James Dickason. Over long-distance to the Chronicle. Mr. Johnson he had no statement make. He indicated. however, his defense would include calling upon the su preme court decisions in similar cases These decisions state, in substance, bank officials have right to keep an institution open and continue to accept deposits in the face of in solvency. provided there is any possible chance of reestablishing solvency Mr. Greenough said the state will be ready with its cases against all four men some time in October

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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.