Exchange National Bank (Spokane, WA)

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EXCHANGE NATIONAL BANK CLOSES DOORS

ASK JAIL TERMS ALL RUM CASES

Drastic Orders Issued by County Prosecutor Due to Rogers' Trial.

Drastic orders concerning the conviction of liquor violators were issued today to all deputy prosecutors by Prosecutor Charles Greenough as a result of Deputy Prosecutor Frank Funkhouser yesterday being successful in his plea to Justice Charles Gram for a suspended jail sentence and suspended fine of $250 in the case of Frank Rogers, 25. have instructed all my deputies to demand jail sentences for violators of the liquor law,' said Prosecutor Greenough.

Pleaded Guilty. Rogers entered plea of guilty manufacturing liquor and admitted owning and operating still in a house at E2 Eighth. Although censured Rogers and he severely declared that he believed that Rogshould be deported, Funkhouser ers recommended to Justice Gram that the jall sentence be suspended. Funkhouser explained his recommendations by saying that he and Deputy Sheriff W. A. Harker had stipulated with Rogers' attorney, and had agreed to recommend suspended sentence if Rogers would plead guilty. When Funkhouser halted the trial for Brower denied having Deputy Sheriff Hark sentence this Brower

Talked After the this onference. ledge in

Sheriff orders Sheriff his action persons in reduce hat more imporwill barter liquor tant Greenoug the lay facts There may exceptions, but these will where evidence is sufficient to secure conviction case is carried higher court."

Judge Gram said he favor suspended liquor law

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TWOHY PRAISES BANK DIRECTORS

D. W. Twohy chairman of the Old National Bank Union Trust commended the directors of the Exchange National bank on their in closing the bank in the follow ing statement: "While the placing of the Exchange National bank into voluntary liquidation by its direccomes as shock to the community, the action of those in charge taken for the purpose protecting equally the depositors of institution, should be commended informed that the institution has considerable cash which will be distributed to reasonable promptness, other Spokane banks aid business situation by making advances claims when they can be put into legal form. feel sure that this liquidation in an derly way will result the benefit of all concerned.

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TWOHY PRAISES DIRECTORS' ACTION

W. Twohy chairman of the Old National Bank Trust commended directors the Exchange Na. tional closing the bank in the following the placing of the Exchange National bank into untary liquidation its directhe action charge for the purpose of protecting equally depositors the institution, should be are informed that the institution has will be distributed to depositors reasonable promptness, and other Spokane banks aid business situation by making advances on claims they can be put into legal form. feel that this liquidation derly result to the benefit of all concerned.

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TWOHY PRAISES BANK DIRECTORS

W. Twohy, chairman of the Old National Bank and Union Trust directors the Exchange National bank their action closing the bank in the following the placing of the Exchange National bank untary liquidation by its direccomes community the action charge for the purpose equally depositors the institution, should be commended. informed that the institution has means, be distributed depositors reasonable promptness, other Spokane banks business situation by making advances claims they into legal form. feel sure that this derly result the benefit of all concerned." possession with intent to sell not "We not to reduce charges opportunity secure on more important offense," said Prosecutor "We will barter bootleggers and liquor manufacturers. issued instruction the deputies lay the facts before the court. may but will evidence not sufficient to the case is carried higher court."

Judge Gram said that he did favor suspended sentences for liquor law violators.

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THREE BANKS CLOSED.

Pennsylvania, Washington And Idaho Depositaries Affected

People's Bank of Farrell was closed today by state banking officials who said an examination had shown "frozen" assets. The action followed a run on the bank which took place after department store, whose proprietor Director of the bank. The bank's resources were given December 31 as $847,633.32

January The Exchange National Bank of Spokane failed open its doors this morning simple of the was W. H. Baldexaminer charge The bank has approximately $8,000,000 in

Cocur January First Exchange National Bank of Coeur closed today Notice on the door said "Closed by order of the Directors E. E. Flood, of Spokane. is President

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NAME BALDRIDEG BANK'S RECEIVER

National Examiner Will Be in Charge Exchange National in Spokane.

W. H. Baldridge, national bank the Washington, today appointed receiver the Exchange National bank of Spokane, which closed its doors yesterday to protect its depositors. Doors of bank still were closed this will not be opened sometime Mr. Baldridge The safety devaults still are closed and Mr. Baldridge said he would not be to customers to get to the for plete books the list every assets and liabilities,' said Mr. Baldridge. payment can positors everyone has had the opportunity claim against the bank. The 90 days for the filing of claims.

Open Next Week.

"The bank probably will opened some for to come in and talk over Mr. Baldridge intimated the staff care for the work auditing the accounts and liquidating the bank. Notes held the bank not be collected until they fall due and the estate fixed assets will take and result the process making full payment necessarily will take time, it is said. the city, business was normal and bankers everywhere sounded note of encouragement. Other the making for payrolls and business banked at Exchange. Spokane banks, exclusive of the Exchange, had nearly cash from other banks and than $30,000,000 in liquid pahand the time of national bank call as of December 31.

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NAME BALDRIDGE BANK'S RECEIVER

National Examiner Will Be in Charge Exchange National in Spokane.

W. H. Baldridge, national bank examiner the Washington, today was appointed receiver the Exchange National of Spokane, which doors yesent terday to protect its depositors the bank still closed this morning and will not be opened until some time next week, Mr. Baldridge said. The safety posit vaults are closed and Mr. Baldridge said he would not be able to customers get to the vault for several days yet. tion. first move is make complete audit of the books of the will bank list every item of assets liabilities," said Mr. Baldridge. payment can be made dehas had the opportunity to file any claim against the bank The 90 days for the filing of claims.

Open Next Week.

"The bank probably will be opened time next week for people to come in and talk over business matters.' Mr. Baldridge intimated the same banking staff would be retained for the work of auditing the the bank. Notes the not be fall due the real and other will take time to and result the process of making full payment to depositors necessarily will time, business normal everywhere sounded encouragement. Other banks in the city making loans to for current payrolls and business houses who banked at the Exchange. Spokane exclusive of the Exchange, cash and from banks and more than in liquid hand the of the tional bank call as of December

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SPOKANE BANK CLOSED SPOKANE, Wash., Jan. 18 (AP).—The Exchange National bank of Spokane failed to open its doors this morning. A simple statement of the closure was posted by W. H. Baldridge, National bank examiner in charge. The bank has approximately $8,000,000 in deposits.

IDAHO BANK SUSPENDED COEUR d'ALENE, Idaho, Jan. 18 (AP).—The First Exchange National bank of Coeur d'Alene closed today. Notice on the door said "closed by order of directors". E. E. Flood, of Spokane is president.

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GET DAYS TO $1,000,000

Exchange National Stockholders Find They Need Not Meet Big Assessment at Once. of the tional called upon by the 90 days day from read the banking The notice out by the receiver makes of the time than that the the notice the will be by the 167 to raise the money called for Receiver H. Baldridge of the Exchange yester. day that the preliminary work proceeding torily Nearly the regular clerical staff of the bank the work probable disposition of the bank building the sub. of among the location the banking well equipped the Exchange modeled the bank spent $50,000 the was stated Exchange National originally the home the First National Bank of Spokane

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90 DAYS TO RAISE $1,000,000

Exchange National Stockholders Find They Need Not Meet Big Assessment at Once. of the Exchange Na. tional called upon by the receiver the day read the banking by the receiver makes the time of payment than that the ment due when the notice time law be by the 167 raise the called for Receiver Baldridge of National reported yesterday the preliminary work of proceeding torily. Nearly 50 per of the regular staff of the engaged The disposition of the bank building the gossip among is while banking for the Exchange modeled the bank spent $50,000 on the was stated yesterday. The Exchange National building the home the First National Bank Spokane.

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EXCHANGE CLAIM PLAN SPEEDED

Hundreds of Depositors Handled by Bank Receiver's Staff on First Day.

1 FAINTS: CARRIED OUT

Certificates for 60 Per Cent Divi- dend will Go Out Some Today, Perhaps. to an of the filled the of the National afternoon file their in accordance to law About admitted 200 were in waiting in the outer Within the bank during the the the savings windows At the there the normal activity evidence the bank the at two Police and the the only exciteand an fainted had

Must Classify Claims.

Creditors filing proofs of their asked state whether the consisted an open account, and the have certificates of unpaid drafts protest fees drafts unremitted The has for on cates The claimant asked affidavit that he has assigned the claim to any one knows no set-offs or legal or defense against the then to before notary usually bank receiver's certificates entitling the holder to the first dividend of per cent were yesterday but some may out today estimated night that the speed the first day in proofs of claims not require the days he had first

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ALLEGE FLOOD JUGGLED FUNDS

Exchange Bank Official Is in Court Today to Answer $3000 Charge.

Juggling of the funds of depositor the defunct Exchange National bank was charged to E. Flood, former vice president, in trial suit for $3000 against bank's receiver before Judge Stanley Webster in federal court toJ. Hooper, La Crosse, Wash., sheep man, testified without his consent the former Exchange bank official had transferred $3000 from his in Spokane the First Exchange National bank Coeur d'Alene. The leged unauthorised transfer was September 16, 1926. Flood, called to the stand, admaking the transfer, but permitted to explain objected grounds of improper On direct examination, Flood merely been asked if he made the transfer.

Flood admitted that at the time of the he was stock. holder and director in the Coeur d'Alene The suit against the bank and James Drain, brought Grant Copeland, in-law of Hooper, whom the latter assigned the account. Hooper, on direct testified that the time of the transfer of funds, he was not indebted to the Coeur Alene bank, but Injected into minutes later when Attorney Charles Lund, for the receiver, offered in evidence note for $11,000 payable to the d'Alene bank and dated July 'You testified that you didn't owe Coeur bank, Lund questioned. "No, didn't owe them," Hooper answered. Q-Didn't you ever go there and on note? you ever in Coeur d'Alene? but not in any bank there. how about this note signed by you for $11,000 and payto that

On Real Estate Deal. A. (With signed that note in blank and gave Mr. Flood to apply on a contract for real Hooper testified that when he found his $3000 had transferred to Coeur d'Alene he went Flood and protested and Flood promised bring the money back to the Spokane He subsequently continued his he but to in the early part of 1927 he and Flood had "rumpus" and off relations. "I didn't want my money Flood that of such transfers myself and that he had no right to send my deposits to Coeur d'Alene without consent. He repeatedly promised to bring back. 'Did he do it," Attorney Fred B. Morrill asked. he not, and I've never gotten it," Hooper The case expected to go to the jury late today.

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ALLEGE FLOOD JUGGLED FUNDS

Exchange Bank Official Is in Court Today to Answer $3000 Charge.

Juggling of the funds of a depositor Na. tional bank charged Flood, former vice president, in the trial of $3000 against bank's receiver before Judge Stanley Webster in federal court to. J. Hooper, La Crosse, without his consent the bank official had transferred $3000 from his account the Spokane to the First Exchange Nationof Coeur d'Alene. alleged transfer was September 16, 1926 called to the stand, admitted making the transfer, but was permitted to explain when plaintiff counsel objected on the grounds of Improper examination. On direct Flood had merely been asked if he made the

Flood admitted that at the time the transmetion holder and director in the d'Alene bank. The suit against the bank and James is being brought by Grant Copeland, fatherof to the transfer debted the but mystery the case few minutes later Charles for the offered in evidence note for $11,000 payable to the bank and July testified that didn't owe you the Coeur Lund tioned. didn't owe them," Hooper Q-Didn't you ever go there and on you ever Coeur d'Alene? but not in bank there. how about this note signed for $11,000 and payable to

On Real Estate Deal. A. (With signed that note and to Mr. Flood to apply on contract real Hooper testified that when he found his $3000 had transferred to Coeur he Flood protested and Flood promised bring the back the Spokane He quently continued his protests, he in said, but to avail, until in the part of 1927 he and Flood had early "rumpus" and broke off didn't my money told Mr Flood transfers myself and that he had send my deposits to Coeur right d'Alene without consent. He ny peatedly promised to bring It do it," Attorney Fred B. Morrill asked. he not, and I've gotten it," Hooper The case was expected to to the jury late today.

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BANK RECEIVER WILL FORECLOSE

Suit to foreclose $40,000 mortgage on business property on Secone avenue Browne and DIvision street was started in Superior court today by James Drain, receiver of the Exchange National bank. Charles E. Rice, D. E. Rice, Carl E. Nyhur, Rogers and the Citizens Savings and Loan company are defendants in the action. The loan of $40,000 made on two notes, dated August 1, 1925, the complaint cites.

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EXCHANGE NATIONAL RECEIVER ADDS TO PAYMENTS

Dividend of December 17 Makes Bank Will Fred Have Paid.

TOTAL IS 90 PER CENT

To 8000

Drain Expects Payment in Full Early in 1930.

DIVIDENDS.

February 1929 20 1,287,210 December 643,585 Totals 90 Estimated total individual deposits, $6,500,000. Bank closed Its doors January 18, Number of depositors, in excess

General James Drain, receiver the Exchange National terday announced the Pole, comptroller of the the dividend per bank. total per cent, either paid or the which has been There are 8000 depositors in the The has hopes full during the fore part of next year.

Praises Spokane Honesty.

"This has been possible the insistent attitude the people of Spokane toward their debts trust," said Receiver Drain. "Those owed the bank sacrifices early and would hardly say much the people of vicinity owed National bank. "If full, as hope may be be bethe sterling Spokane debtors banks of have been helpful have done what they could assist. the honesty of our people, the of dividend has been supplied by Charles Lund, attorfor the trust, has been tower of strength to the receiver.

8000 Share $650,000 Dividend. amount of this under The who will celve dividend checks well Payments will be made office the the Street Bank N117 street, ready for delivery the who call for Exchange closed its doors January of this year. Its footings at the time were arrangement the Old National bank diately ruary $4,000,000 the first 60 per cent. 20 per paid That was made possible by the Exchange Bank the for one else." 000, will make total of 90 per cent.

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EXCHANGE PAYS $643,585 MORE

Dividend of December 17 Makes $5,792,595 Bank Will Have Paid.

TOTAL IS 90 PER CENT

To 8000

Drain Expects Payment in Full Early in 1930.

NATIONAL DIVIFebruary 26. 60 20 December 10 643,585 Totals 90 Estimated total deposits, Bank closed its doors January 18. Number of depositors, in excess

General James Drain, receiver of the Exchange bank, yesthe by John W. Pole, comptroller of the currency, the payment another dividend 10 per cent to depositors the Exchange bank. makes total of 90 per cent, paid or the payment which has There are 8000 the be pay full during the fore part of next

Praises Honesty.

"This payment has been made possible the insistent attitude the people Spokane the their debts "Those bank have early and they be hardly say much the people Spovicinity owed Exchange National full, may will cause the sterling Spokane other debtors the National Spokane helpful and have what they could to the honesty of our the and busivaluable dividend has been supplied by Charles Lund, attorthe trust, has been tower strength the receiver.

8000 to Dividend. amount this dividend under $650,000. The number depositors will dividend well 8000. made office the receiver Street Bank building, ready delivery to the who call for them December Exchange closed its doors January this year. Its footings the time By the with the Old National bank Febthere diately nearly $4,000,000 the first dividend per 20 per paid in That part by building, bought for $450,for some The coming will make total of 90 per

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EXCHANGE NATIONAL RECEIVER PAYMENTS

Dividend of December 17 Makes $5,792,595 Bank Will Have Paid.

TOTAL IS 90 PER CENT

To Drain Expects Payment in Full Early in 1930.

EXCHANGE

NATIONAL DIVIDENDS.

Am't. February 26. $3,861,501 1929 1,287,210 December 17, 643,585 Totals $5,792,596 total individual declosed its doors January 18. Number of depositors, in excess

James Drain, receiver Exchange bank, terday the Pole, the the payment dividend per to depositors Exchange National bank. of per cent, the which There 8000 the bank. has hopes that the pay full during the fore part of next year.

Praises Spokane Honesty.

"This payment has been made possible through the insistent attitude the people Spokane the their debts Drain. have made many sacrifices early and often they would be hardly possible say too much praise the people Spokane vicinity owed the National bank. full, we hope may done, be because the sterling and other debtors the Exchange National bank. The banks of Spokane have been sympathetic, helpful and done they could to the honesty our people, the helpfulness of banks busimen, next most valuable dividend efforts has been supplied Charles Lund, attorfor the trust, been tower strength to the receiver.

S000 to Share $650,000 Dividend.

"The total amount this dend under $650,000. The number depositors who will dividend checks made the office the receiver the Street building, street, and ready delivery the depositors who call December Exchange National closed its doors January this year. total footings at the time were By the the Old National bank February diately in the first per cent. per dividend paid That was'in part building. bought Hamblen for 000, one The will make total of 90 per cent.

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McBroom, Flood, Defendants in $59,200 Suits.

E. E. Flood, vice president, and C. E. McBroom, president of the defunct Exchange National bank, were made defendants today in suits aggregating $59,200, filed by James A. Drain, bank receiver. Flood is being sued for $35.500, costs and interest, while McBroom faces suit for $23,700. costs and interest less payments totaling $589.78. The suits are based on the double liability of stockholders. The Exchange bank closed its doors on January 18 this year. Flood owned 355 shares capital par value of $100 and McBroom had in his possession 237 shares, bank records showed. On January 28 the comptroller of the curency ordered the of the individual liability of stockthe extent of 100 per cent. assessment was levied upon the for the par value each share the the failure. The comptroller rected collect the Individual liability by sult or otherwise.

McBroom Made Payments. McBroom made three payments on his assessment. On February he paid $393.19, June 27 $131.06 and on December 13 $65.53. No payments made since then. Flood has made no payments on his assessment, contends. The suits filed in federal court shortly before noon today Charles P. Lund. attorney for the Flood slated to go into United States court January for retrial of the bank conspiracy him. The jury disagreed in the first trial of this Roy Fox. the district attorney, is en route Washington to confer Attorney General Mitchell entire Exchange Flood the charge falsifying bank ords, but the circuit court of appeals at San Francisco reversed the local court. Unless Fox appeals the circuit United States supreme effect circuit ruling is to give Flood a new trial.

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3400 IGNORE BANK CHECKS Receiver Drain Surprised by Exchange Depositors' Attitude.

It was estimated yesterday by James A. Drain, receiver of the Ex. change National bank, that 4700 checks for the third dividend paid by the have been issued, leaving nearly 8400 checks yet to be called for. Payment of the third dividend of $643,000, making total 90 per cent to date, has been under way since December 13. Receiver Drain is anxious to get the checks into the hands of former depositors and is at loss to explain the delay calling for them. Most of the checks for larger amounts have gone out.

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DEFAULTS IN EXCHANGE SUIT

Bank Receiver Takes Judgment of $10,566 Dwyer. $10,566 by default of Spokane has been entered in the suit brought the federal court James Drain, receiver the Exchange National bank, seekan 100 shares of the stock of the defunct The begun by General Drain with the directions from the the amount the being equal the value of $100 per share, of cent and costs added.