United Hillyard Bank (Spokane, WA)

Episode Information

Episode UID
28006371589
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
2800637 routing
Routing Number
28-0063
Start Date
May 5, 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
2f65e423054421b3

Response Measures

None

Description

Bank suspended for reorganization in May 1932 and is later listed among closed banks investigated in August 1932, suggesting permanent closure.

Events (2)
1. May 5, 1932 Suspension
Cause
Correspondent
Cause Details
Direct trigger was loss from deposits the bank had with the failed American Bank, which wiped out much of its cash reserve; compounded by depressed securities values and poor loans.
Newspaper Excerpt
The United Hillyard bank has suspended operation, pending outcome of plan to reorganize ... the bank, pending reorganization, is in charge of the state banking department.
Source
newspapers
2. August 26, 1932 Other
Newspaper Excerpt
All closed banks in Spokane will be investigated ... The Spokane Savings bank, United Hillyard bank, Spokane State bank, Wall Street bank ... all will come under the prosecutor's scrutiny.
Source
newspapers

Newspaper Articles (3)
1. May 5, 1932 Spokane Chronicle Spokane, WA
Article from Spokane Chronicle, May 5, 1932

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Article Text

HELP DEPOSITORS REORGANIZE BANK The United Hillyard bank has suspended operation, pending outcome of plan to reorganize with the aid of high traying plan approved by directors last night contemplates placing 50 cent of deposits, together with Theron capital and surplus of the bank in The holding put the bank strong liquid and enable to About 75 depositor men SEND Hillyard met with the directors last evening and signed over 50 per cent their deposits to the plan committee. These represent substantial percentage total deposits. number of additional pledges were this morning. letter outlining the plan has been mailed to all depositors. In part, the letter reads Cause of Reorganization. "The direct cause the reorganization is the failure the American bank. which time this bank had on deposit with the approximately its cash reserve. No one the extent of this loss further factor the reduced value the bank's securities, notably its bonds, the result of present depressed economic and dustrial conditions contributing factor group of loans, good made, but result changed conditions, of limited value. "These combined circumstances have seriously impaired the bank's capital, resulting in an assessment by the state banking department of 100 per cent against the capital stock of the bank. Holds High Bonds. "With the exceptions above noted, the bank, including assets, good condition Its bonds are highclass securities, which, return to normal conditions, should have rapid Most of its loans to local borrowers, who can and will pay, given time do so. Its only from the finance corporation since the closing the American bank, which this bank has the cash to pay twice over. "The directors propose to form holding corporation which will transferred without compensation the present bank and such of the may not be acceptable to the state banking department. The depositors are asked to release 50 per cent their deposits to be placed the holding company for which they will be given stock in the holding company. Will Preserve Assets. "Upon reopening of the bank the other 50 cent deposits will made immediately available the depositors in in whatever form they when the bank desired. The net result will be that the old stockholders will get nothing, contributing their entire $150,000 capital and the bank's surplus the depositors, who will own the holding company which in turn will own the bank. All of the assets the bank. including the earning and value as thus to the depositors with no additional Serve Without Compensation. "The bank's officers, including its directors are not tipuance in office. Their services, however, are available to the extent desired by the new stockholders. They will assist in the reorganization without compensation. H. Smead, president of the bank: C. Stough, and cashier, and assistant cashier, will make their headquarters in the Hillyard Masonic temple from until The bank, pending reorganization. is in charge of the state banking department.

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

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Article Text

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

3. January 1, 1933 The Spokesman-Review Spokane, WA
Article from The Spokesman-Review, January 1, 1933

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Article Text

Pass in Review 1932 High Lights Spokane tinues ascent, October Mount road show to play Fox last May damages tomatoes Month by Month, Events of Last Year nent Citizens Pass From Scene-Outstanding Features in Sports, Stage, Industry and Civic Affairs. in Spokane and the Another year has taken its place in Inland Empire the march of time and has joined parade that runs back centhe great through the past. And today turies year makes its debut. these high lights in In presenting for 1932, The SpokesmanSpokane Review merely lists the outstanding news events, day by day, as compiled from the columns of this paper. generally like to indulge in People editors. Not every day the year came through with high light. Some days had several-possibly more than brief diary All all, 1932 was not an outstanding year in Spokane had somber moments well some events. It should not some inspiring hard for 1933 to turn in better be Undoubtedly will. However, story. the of 1932, good and bad, are presented herewith, chronologically: JANUARY. January 3-Bank deposits are $54,beginning year January 5-Plumbers cut pay from $10 to $5 daily; nurses reject volunpay January 7-School teachers make salary proposal. January 10-Chinooker follows snow and clears away snow. January 11-Columbia basin troduced congress; Inland Empire has floods. January 14-Five inches of snow falls. January 17-Gray R. Harrower dies from accidental gunshot wound. January 18-Nearly one inch of rain falls hours; then snow. January 26-Judge George Turner dies January 27-Junior league regional conference January 28-George L. former sheriff and county commissioner, January 29-Two above zero; coldest of winter date. January and near zero weather ties up trains and interurban busses; inches in city. FEBRUARY. February 2-Nine below groundhog day; bright sunshine February 3-Roy K. Roadruck signs as president of Spokane University; Abbey Players, Dublin, visit Spokane. February 5-Thaw ends cold spell February 9-Blizzard and wet snow ties up main highways February 10-Dr. Henry Luhn, pioneer Spokane physician, dies in Moscow; E. Edgington, banker, dies. February. 13-Richard Foth shoots policeman and truck driver and shot in holdup. February 17-Community Chest goes over top with $253,000, exceeding quota, day ahead time. February 20-Thaw ends 85 days of skating this winter. February 22-Spokane observes Washington bicentennial with parade, bells, banquet, ball and speeches; R. Stephens February 25-Steady warm rain clears up snow; load restrictions on highways; floods in Union Park. February February day on degrees; washouts tie up and Milwaukee to the February Gillette visits on farewell tour in "Sherlock Holmes MARCH March 1-March came in like lion; bright sunshine. March 2-Six inches of wet snow falls. March of wet snow. March 6-weather office reports 73.5 inches snow, heaviest in years. March 8-Herbert Ritter elected to school board; M. B. Connelly dies. March 10-Eugene Enloe named president of the Washington Trust company. March 11-School board votes to cut teachers' salaries 10 per cent. March 16-The groundhog wins his bet on weather. March Quilt" is first of snow disappears. March golfers out: buttercups March opens with bright sunshine; considerable growth in gardens. March dust storm of the year. March 26-Mayor Funk announces ten cent wage cut for city workers effective July March march to city hall and courthouse. March goes out like lamb; swallows appear. APRIL. April comes in with showers. April spring cleanup week under way April John M. Semple dies April 6-Inland Empire Teachers' opens Fox theater. April convention closes with 2400 registered; Ruth West Spokane, elected president. April Hampden presents "Cyrano de Bergerac" at Post Street theater. April 13-Run of warm weather brings out lawn April and Spokane State banks open; run on Spokane Savings bank; Wall Street bank April campaign passes $4,000,000 for 1932 building. April 25-Paderewski, Polish pianplays at Fox theater April Adams and Otis Skinner in Merchant of Venice" Post Street theater. April production of "Green Pastures" plays Spokane. MAY. May 4-United Hillyard bank votes pending reorganization. May 5-Spokane Savings bank asks depositors' assistance in reorganizaMay 6-3100 school children in George Washington pageant at Natatorium May 8-Zinnia voted Spokane's official flower: syringa official shrub. May annual Sportsmen's and Tourists' fair opens; Union Park bank closes doors. May bank closes its doors. May attend the Sportsmen's and Tourists' fair. 15-Dedicate administration building at airport; 2500 march in "red" parade with red flags. May enhance wheat outlook, already the best in the Inland Empire May two days, 1.59 inches of rain falls; 9.08 inches since January which 38-year record. May Sillman and his sister, Rose Auritt, killed by explosion in their car near Prosser. and other valley crops. JUNE. June 4-First Spokane valley strawberries reach the market. June 5-W. Croyle, investment broker, found shot to death; bacca- laureate exercises in three high June 8-Veterans of Foreign Wars open district encampment in Spokane June 9-Hundreds turned away from placer mining school in Civic building and demonstrations along river. June army planes from California visit Felts field June ends heat wave which hit 91. June close for summer vacation; state takes over Spokane Savings bank. June H. Macartney, Cheney dies suddenly. June 1-Summer comes in and runs temperature of 93. June heirs lose before circuit court of appeals. June clubs unveil sun ball Mount Spokane. June druggists and northwestern doctors hold conventions in June G. Sater named president of Spokane university. JULY. July 1-Roland L. Bayne named secretary Community Welfare federation. July 3-Arthur Oppenheimer dies; heavy rain and thunderstorms follow dust storm. July 4-Safe and sane Fourth produces just one fireworks accident July Secretary Wilbur, visitor here, says Columbia basin project, "American July 14-Spokane hog market con- month; sales, July and Mrs. Milner, E214 Thirteenth, awarded city sweepstakes contest. July 16-Dr. Walter Webb dies. July 27-Spokane wins postal appropriation for new federal July Lewis wounds Mrs. Courtwright, and kills himself. AUGUST. August 3-Park board decides to abolish Manito but keep greenAugust Verhagen pastor Our Lady Lourdes cathedral after years August 7-Hottest day of August 8-Barnes' circus first year to visit hot spell ends with 90 August Sweeny Spokane in London, England August 15-R. refuses loan to Spokane Savings supreme court opens way to liquidation. August Toevs. former Centennial mill manager, dies suddenly August lands regional agricultural credit August 22-First heavy rain in 18 days August closes with record. August American bank officials arrested state August drops to 45; snow whitens mountain tops. September 5-Charles billposter, kills two Italians in feud on downtown street September 7-Annual fall 8-Schools for fall September open September 13-Primary election Hartley ment announces operate Orpheum theater here and September 15-Robert E. Helena named manager Spokane agricultural credit corporation: attempt to hold up Old National bank fails. September 17-Duststorm ushers in first college Gonzaga Oregon State September 19-Rain ends long dry spell. September Roosevelt goes through Spokane canceling speech; first frost. September Millikan comes Spokane for cosmic ray September Good meets in October September D. McBride new Orpheum manager, while Runte goes to under Fox central control. October try hear Norman Thomas, socialist candidate for presiOctober hearings attract taxpayers. October 7-Harry Baer, pioneer, dies from gunshot wound. October 8-Gonzaga beats October 9-Heavy frost end flowers and puts ice on bird baths. October 11-Vice President Curtis addresses large crowd in state armory; ends long dry spell. October agricultural credit corporation closes its first loan. October beats Dakota 61 to October 18-Final city registration breaks all records with county, October H. Minnick, deputy game warden, killed in hunting accident near Rockford. October 24-2300 teachers attend Washington association meeting at Fox theater. October 25-Dr. Elwood Mead tends annual meeting Columbia Basin Irrigation league. October 31-Rain accompanied first snow in the city. November 3-Spokane Agricultural Credit authorizes 856 in loans farmers November sweep state county in record Clarence Cheney new governor 11-Ground covered dedication of Neely Armistic November Harry Lake Lumber acquires Edwards Fred November found banking sentenced months in November Wesley Gonzaga beats South Dato November 22-Pussy willows in on south November day: North Central beats Lewis in Shrine benefit game November Chest ends $213,411 raised November in bloom: weather prevails December Davis named head of regional crop production loan December Brothers two buildings Adams and Railroad December hard freeze-up with snow and icy December 7-First skating of the December Judge Hugo Oswald dies: below zero in residential December 12-Lieutenant Governor Meyers visits county jail and leads orchestra Garden dance December 15-Jury frees Charles Potestio on murder December 16-Snow ends 10-day stretch of weather. December Mining convention closes with large attendance. December 19-First chinook of the winter clears up six inches of snow December comes with sunshine and springlike temDecember 22-Henry Lane Wilson former resident, dies Indianapolis; snowstorm ties traffic December Mamer announces fast air service, Seattle to Chicago via Spokane.