Bennett National Bank (Bellingham, WA)

View Charter #4171 on SPMC View balance sheet

Episode Information

Episode UID
417101151
Episode Type
Run → Suspension → Reopening
Bank Type
national
Bank ID
41710 national
Charter Number
4171
Start Date
November 5, 1895
Location
Bellingham, Washington (48.760, -122.488)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
2c15981b3979b558

Response Measures

Capital injected, Full suspension, Books examined

Other: Creditors granted extensions on claims to allow realization of assets; some Bennett stock sold to local businessmen and a new board of directors installed; directors wired the Comptroller to place the bank in the hands of the national bank examiner.

Receivership Details

Depositor recovery rate
82.3%
Date receivership started
1896-09-19
Date receivership terminated
1902-02-24
OCC cause of failure
Losses
Share of assets assessed as good
18.5%
Share of assets assessed as doubtful
64.4%
Share of assets assessed as worthless
17.1%

Description

A later separate suspension occurred in Sept 1896 after the bank had reopened in Dec 1895.

Events (6)
1. December 4, 1889 Chartered
Source
historical_nic
2. November 5, 1895 Run
Cause
Local Banks
Cause Details
Run triggered by sudden suspension/closing of the neighboring Bellingham Bay National Bank and related local distrust following Tacoma troubles.
Measures
Directors met and adopted a resolution not to open next morning; president instructed to wire comptroller to place bank in hands of examiner.
Newspaper Excerpt
The suspension of the Bellingham Bay National Bank precipitated a run on the Bennett National Bank, which continued until the close of banking hours.
Source
newspapers
3. November 5, 1895 Suspension
Cause
Local Banks
Cause Details
Suspension followed immediate run precipitated by Bellingham Bay National Bank's closing and local loss of confidence.
Newspaper Excerpt
Directing the president to wire the controller of the currency to place the bank in the hands of the examiner.
Source
newspapers
4. December 19, 1895 Reopening
Newspaper Excerpt
The Bennett National Bank ... which was forced by a sudden run to suspend Nov. 5 ... was reopened for business today.
Source
newspapers
5. September 14, 1896 Suspension
Cause
Macro News
Cause Details
Suspension ascribed to general lack of confidence/financial agitation causing heavy withdrawals; assets reported sufficient to meet claims.
Newspaper Excerpt
Heavy withdrawals caused the suspension of the Bennett National Bank today.
Source
newspapers
6. September 19, 1896 Receivership
Source
historical_nic

Newspaper Articles (22)
1. June 24, 1893 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, June 24, 1893

Click image to open full size in new tab

Article Text

THE DAILY LIST. Banks and Business Houses Forced to Suspend-New York Troubles. NEW YORK, June 23.-Sheridan and Byrne, builders, are financially embarrassed. Their liabilities exceed $225,000. Abraham Steers, one of the largest lumber merchants and planing mill men in the city is temporarily embarrassed. being unable to get further accommodations. His creditors today granted an extension. His liabilities are $380,000, assets $475,000. Its Doors Still Closed. SAN FRANCISCO, June 23.-The Pacific National bank did not reopen its doors today. The deposits amount to about $1,500,000. Its loans and discounts are said to be $2,500,000. The embarrassment appears to be entirely due to the recent monetary troubles, and it is expected the depositors will lose nothing. The officers of the bank say they will resume in a short time. It may be that the closing down of the Pacific bank will result in the suspension of the People's Home Savings bank, a collateral institution, under practically the same management. Its total deposits are about $1,700,000. There is no apprehension as to runs on other banks. Cataract Bank Fails. NIAGARA FALLS, June 23.-The Cataract bank of this city the largest bank in Niagara county, closed its doors at noon. There is great excitement among the business men in consequence as over $700,000 of their money was on deposit there. Resources More Than the Liabilities. SAN FRANCISCO, Cal., June 23.-The People's Home Savings bank closed its doors this morning. It affiliated with the Pacific bank which closed its doors yesterday. The resources are said to exceed the liabilities. Depositors Forced the Suspension. MINNEAPOLIS, Minn., June 23.-The state bank of this city suspended payment this morning. Assurance is given that it will resume in a few days. The bank has a paid up capital of $75,000. Steady withdrawals by depositors were the cause of the action. A Week's Disasters. NEW YORK, June 23.-Bradstreet's reports 360 failures in the United States this week, against 159 for the week a year ago. Stood the Run for Five Days. SAN BERNARDO, Cal., June 23.-The First National Bank closed its doors today, after undergoing a run for the past five days. ) Banks Reported as Failed. WASHINGTON, June 23.-Controller Eckels has been officially informed of the failure yesterday of the following national banks: The First national bank of Kendallville, Ind.: the First national bank of Santal Ana, Cal., and the First national bank of Whatcom, Wash.

2. June 24, 1893 New-York Tribune New York, NY
Article from New-York Tribune, June 24, 1893

Click image to open full size in new tab

Article Text

PACIFIC COAST BANKS GO UNDER. FAILURES OF IMPORTANT INSTITUTIONS IN SAN FRANCISCO-A BANK IN WASHINGTON CLOSED. San Francisco, June 23.-At a meeting of the dlrectors of the Pacific Bank of San Francisco held last night It was decided not to open their doors this morning. In a statement Issued by their vice-prestdent, the liabilities. outside of capital stock and surplus, are placed at $1,630,000 assets, If properly handled, will reach $2,000,000. The direct cause of the suspension is notice from the Clearing House Association that the bank's paper would not be accepted hereafter. It has been known for some time that the bank was laboring under financial difficulties and the announcement of the action of the Board does not create great surprise. The Pacific Bank was organized in 1863 by R. 11. McDonald, and its present manager Is R. 11. McDonald, jr. It has a paid-up capital stock of a million dellars, a nominal reserve of about $700,000 and deposits of about a million and a half, according to a recent official report. Its loans and discounts are said to be about two and a half million. The failure seems to be altogether due to the recent monetary troubles and It is expected the depositors will lose nothing. Manager MeDonald says that the bank will resume business In a short time and that the suspension is resorted to that the bank may realize from its assets and protect Itself from a sudden run by depositors. The closing down of the Pacific Bank resulted in the suspension of the People's Home Savings Bank, a collateral institution under practically the same management. It has a guaranteed capital stock of $1,000,000, of which one-third is paid up In cash. According to a recent statement of the People's Bank It has total deposits of $1,700,000. On the door of the People's Home Savings Bank was the following notice: "Bank closed temporarily in order to protect depositors and give time to collect on securities. We have sufficient assets, more than our liabilities." The president, Columbas Warehouse, last night deeded all his property to the People's Bank that they might raise money on it to title them over the crisis, This property is far in excess of all liabilities of the bank. Failure to realize on the securities was the immediate cause of the temporary suspension. The directors of the bank have ordered the regular dividend to be paid July 1. The stock dividend will be withheld. There was a little flurry around the San Francisco Savings Union when it opened. but this soon subsided. The feeling is that all the commercial banks are on a secure footing. The presidents of many of them express themselves as glad that the crisis has arrived that they may show their strength. Ontario, Cal. June 23.-The Citizens' Bank closed its doors yesterday. The statement shows that the resources greatly exceed the liabilities. Seattle, Wash., Jane 23.-A dispatch from New Whateom, Wash., says that the First National Bank closed its doors at noon yesterday. Inability to realize on Its securities is the cause given for suspension. The bank's officials state their assets are double their liabilities, and that depositors will be paid in full. The bank examiner will be here In a few days. Depositors feel confident that they will receive 100 cents on the dollar. There Is no excitement, and the suspension did not precipitate runs on the other banks.

3. June 29, 1893 The Farmers' Union Memphis, MO
Article from The Farmers' Union, June 29, 1893

Click image to open full size in new tab

Article Text

BANKS SHORT OF CASH The Siringency on the Pacific Coast Be ing Felt With Full Force. SAN FRANCISCO, Cal., June 26.-The People's Home Savings Bank failed to open its doors yerterday morning. On the door was the following notice: Bank closed temporarily in order to protect depositors and give them time to collect on securities We have sufficient assests. more than our liabilities." Columbus Waterhouse deeded all his property to the People's Home Bank. that they might raise money on it to tide them over the crisis This property is far in excess of all liabilities of the bank. Failure to realize on securities immediately is the cause of the suspension. The directors of the bank have ordered the regular dividend to be paid July 1. The stock dividend will be withheld. SAN BARNARDINO. Cal.. June 24. The First National Bank closed its doors yesterday morning. This notice was posted on the door: "Owing to the stringency of the money market and the unusual withdrawal of deposits during the last five days this bank is forced to close its doors temporarily.' SEATTLE. Wash.. June -The Columbia National Bank of New Whatcom suspended yesterday. NIAGARA FALLS, V. Y., June :4.The Cataract Bank of this city, the largest bank in Niagara county, closed itsdoors yesterday. There is great excitement among business men in consequence. as over $800,000 of their money was on deposit The suspension was totally unexpected and was not preceded by a run on the bank. The bank officers confidently expected to receive help from out of town vister day morning, but the money dil not come. Cashier Rankin says that the assets will be far in excess of the liabilities. The bank people claim to have plenty of securities, but when they tried to get them rediscounted at other banks they were refused. President Porter IS confident the bank will resume and he does not think a receiver will be necessary. WASHINGTON. June ":4.-Comptroller Fekels has been officially informed of the failure of the following national banks: The First National Bank " Kendallville, ind., the First National Bank of Santa Ana. Cal.. the First National Bank of Whateom. Wash He has ordered Bank Examiner Cleary to take charge of the Whateom bank and Bank Examiner Packard to take charge of the Kendallville bank temporarily. CINCINNATI, Ohio. June :4.-Samuel W. Coflin & Son. owners of th Cincin nati Dry Docks Company, assigned yesterday to Val P. Collins and H. D. Peck. Assets and liabilities are esti mated at $50,000 each.

4. November 24, 1893 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, November 24, 1893

Click image to open full size in new tab

Article Text

A Whatcom Bank's Hope of Resumption. WHATCOM, Nov. 23.-[Special.,)-Cashier Atkins, of the suspended First National bank, says it will be known December 6 whether the bank will resume. Aid is hoped for from Jacob Furth and Sigmund Schwabacher, of Seattle, two of the largest stockholders.

5. March 11, 1894 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, March 11, 1894

Click image to open full size in new tab

Article Text

George B. Blanchard, receiver of the First National Bank of Whatcom, is in the city.

6. November 5, 1895 Evening Star Washington, DC
Article from Evening Star, November 5, 1895

Click image to open full size in new tab

Article Text

Two National Banks Close. NEW WHATCOM, Wash., November 5.The Bellingham Bay National Bank has closed its doors by order of the directors, being unable to meet the county treasurer's demand for the county's deposit. No statement of assets and liabilities has yet been given out. The cashier reports the liabilities approximately at $105,000, of which $77,000 is due depositors. The assets are $187,000. The suspension of the Bellingham Bay National Bank precipitated a run on the Bennett National Bank, which continued until the close of banking hours. Directors held a meeting and adopted a resolution not to open this morning, and directing the president to wire the controller of the currency to place the bank in the hands of the examiner. The directors say that within thirty days sufficient assets can be realized on to settle all creditors.

7. November 5, 1895 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, November 5, 1895

Click image to open full size in new tab

Article Text

TWO BANKS CLOSE. One Bank Fails at New Whatcom, Wash., Compelling Anotherto Do So. NEW WHATCOM, Wash., Nov. 5.-The Bellingham Bay National bank has closed its doors by order of the directors, being unable to meet the county treasurer's demand for the county's deposit. The cashier reports the liabilities, approximately, $105,000, of which $77,000 is due to the depositors. The assets are $187,000. The suspension of the Bellingham Bay National bank precipitated a run on the Bennett National bank, which continued until the close of banking hours. The directors held a meeting and adopted a resolution not to open this morning, and directing the president to wirethe comptroller of the currency to place the bank in the hands of the examiner.

8. November 6, 1895 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, November 6, 1895

Click image to open full size in new tab

Article Text

TWO BANKS CHOSED, A Tacoma Failure Causes Trouble for New Whatcom Institutions. New WHATCOM, WASH., Nov. 5.-The Beilingham Bay National Bank has closed its doors by order of the directors, being unable to meet the county treasurer's demand for the county de. posit. The cashier reports the liabilities approximately at $103,000, of which $77,000 is due depositors. The assets are $187,000. President Morgan says the suspension is due to a steady withdrawal of deposits and a general feeling of distrust since the recent Tacoma bank troubles. The suspension of the Bellingham Bay National Bank precipitated a run on the Bennett National Bank, which continued until the close of banking hours. The directors held a meeting and adopted a resolution not to open this morning, and directing the president to wire the controller of the currency to place the bank in the hands of the examiner. The directors say that within thirty days sufficient assets can be realized on to settle with all creditors.

9. November 6, 1895 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, November 6, 1895

Click image to open full size in new tab

Article Text

WHATCOM IS QUIET. The Depositors of One Bank Agree Upon a Receiver. GEORGE W. BOGGS STILL IN JAIL Port Angeles Bank Failure to Be Investigated - Ex-Treasurer Clump's New Trial. Whatcom, Nov. 5.-Special.-Hank Examiner Carson has been directed to take charge of the Bennett National bank, 68 well as the Bellingham Bay National. One hundred and three depositors of the latter held a meeting this afternoon, and adopted resolutions urging Comptroller Eckels to appoint a local receiver, and recommend1ng J. B. Dawson, a prominent young abstractor and attorney, who was the Democratic candidate for county clerk last year. Other candidates were E. J. Hill, O. P. Brown and I. N. Maxwell. The indorsement of Dawson after several ballots was made unanimous. Those present represented about two-thirds of the total deposits. Yesterday's bank suspensions are the chief topic of discussion on all sides. There can hardly be said to be much excitement, for the people are very quiet and are, on the whole, fully as cheerful as could reasonably be expected. During the run on the Bennett bank yesterday there was no tumult or confusion among the people who called for their money-simply a quiet determination to get It If possible. The officers, taken as they were in a large measure by surprise, were visibly nervous and anxious, and their attitude served rather to heighten the feeling of distrust than to allay It. It transpires that the directors of the Bellingham Bay National bank held a meeting Sunday and decided to post a notice of suspension Monday morning, If the county treasurer made a demand for the county money, as he had told them on Friday or Saturday that he would do. They did not, however, give the other banks any notice of this intention on their part, and the Bennett National, just across the street, knew nothing of the closing until fifteen or twenty minutes or more after the notice had been posted, and when their doors had been open for business for half an hour or more. They had on hand considerably more than the minimum reserve fund required by law, but were in no condition to stand the run which began quietly just AS soon as the news of the first suspension became public. On the 28th of September the Bennett National reported total deposits of $117,849.25. of which $55,951.66 was virtually on hand, $17,895.70 of it in cash, $37,493.46 due from banks and $062.50 due from the United States treasury. But since the recent Tacoma bank troubles began and Nelson Bennett's personal money difficulties became a matter of public record, distrust has been steadily growing, and $20,000 had been withdrawn when the bank opened yesterday. Withdrawals during the day amounted to $23,000. or $19,000 more than the deposits. The bank has been handling a good deal of shingle paper, and is said to have about $35,000 still Invested that it can realize upon in thirty to sixty days, and its present balance in the hands of various banks is reported at about $20,000. It has been doing a good business and has been generally regarded as safe. The amount now due depositors is about $80,000.

10. November 9, 1895 Spirit of the Age Woodstock, VT
Article from Spirit of the Age, November 9, 1895

Click image to open full size in new tab

Article Text

TWO BANKS CLOSE DOORS. Suspension of One in Washington State Causes a Run on Another. NEW WHATCOM, Wash., Nov, 7-The Bellingham Bay National Bank has closed its doors by order of the directors, being unable to meet the county treasurer's demand for the county's deposit. No statement of assets and liabilities has yet been given out. The cashier reports the liabilities approximately at $105,000, of which *77.000 is due depositors. The assets are $187,000. President Morgan says the suspension is due to a steady withdrawal of deposits and a general feeling of distrust.since the recent Tacoma Bank trouble. The suspension of the Bellingbam Bay National Bank precipitated a run on the Bennett National Bank, which continued until the close of banking hours. The directors had a meeting and adopted a resolution not to open.

11. November 29, 1895 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, November 29, 1895

Click image to open full size in new tab

Article Text

Bellingham Bay News. Whatcom, Nov. 28.-Special.-Greenberg Bros. have made a proposition for a settlement with their creditors for 50 cents on the dollar. There is only a tri-weekly train service now on the Great Northern between here and Blaine and New Westminster. Officers of the suspended Bennett National bank are daily expecting to hear from Comptroller Eckels in regard to the conditions required for reopening. The. report of Examiner Carson as to the condition of the Bellingham Bay National was forwarded to Washington City this week. William Phillips, a young Englishman who has been living alone on a ranch in the Nooksack valley above Lynden for some time, has been adjudged insane by Judge Winn, and committed to the asylum at Stellacoom. He imagined that his neighbors regarded him as a second Durrant, although as a matter of fact he was well liked by them, and so far as known hadn't an enemy in the world.

12. December 14, 1895 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, December 14, 1895

Click image to open full size in new tab

Article Text

Bellingham Bay News. Whatcom, Dec. 18.-Special.-The bark Germania, Capt. Pearson, arrived yesterday morning to load lumber at the Bellingham Bay Improvement Company's mill for San Francisco. Among the cases set for hearing this week before the supreme court at Olympla is that of James Gannon against J. M. Hitt, county superintendent of schools of this county, who refused to grant Ga non a teacher's certificate on the ground that he is not 3. man of good moral character. The superintendent won the case in the superior court here, although Gannon produced a 'number of favorable affidavits on the character question. It is said to be the first time the question has ever been raised in the state, and its determination by the supreme court will be noted@with much interest by superIntendents and teachers generally, Another case from this county now before the court is the damage suit of Johnson vs. Bellingham Bay Improvement Company. A truck loaded with lumber broke through a rotten plank in the company's mill wharf about three years ago and fell on Johnson, inflicting internal injuries from which he has never recovered. He obtained a verdict for $6,000 in the superior court, and the company appealed. An appeal will be taken by the city in the Collinsworth damage case, in which the jury gave judgment this week for $7,250 in favor of the plaintiff. Joe Peet, an Indian, has been sentenced by Judge Winn to four years' imprisonment in the penitentiary for stealing a team last summer-the same sentence, in point of time, that ex-Treasurer Isensee got for the "larceny by embezziement" of about $70,000 of the city's money. Matthew Casey, who broke into Hill's hardware store Thanksgiving night and was caught there, got a five-year sentence. A new and more favorable proposition for the reopening of the Bennett National bank was made to the creditors today, with very good results. The creditors are asked to grant extensions upon their claims covering a period of two years, instead of three, 00 per cent. to be paid the first year and 40 the second, the first payment to be 25 per cent. Some of the Bennett stock has been sold to local business men and a new board of directors is to be chosen. National Bank Examiner Lynch pays the bank a high compliment by saying that in all of his twenty-five years' experience he has never known a suspended bank to make so good a showing as the Bennett now does.

13. December 19, 1895 Evening Star Washington, DC
Article from Evening Star, December 19, 1895

Click image to open full size in new tab

Article Text

The Bennett National Bank of New Whatcom, Wash., which was forced by a sudden run to suspend November 5 with aggregate liabilities of $81,000, was reopened for business today.

14. December 20, 1895 The Anaconda Standard Anaconda, MT
Article from The Anaconda Standard, December 20, 1895

Click image to open full size in new tab

Article Text

New Whatcom's Bank Reopened, New Whatcom, Wash., Dec. 19.-The Bennett National bank, which was forced by a sudden run to suspend Nov. 5, with aggregate liabilities of $81,000, was reopened for business today.

15. December 24, 1895 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, December 24, 1895

Click image to open full size in new tab

Article Text

Bellingham Bay News. Whatcom. Dec. 23.-Special.-The shingle men of the county have effected a new organization and unanimously recommend the shutting down of all the mills in the county until there is a substantial improvement in price. Officers of the Bennett National Bank report that deposits have largely exceeded withdrawals since the bank reopened for business a few days ago and that a score or more of new accounts have been opened. George E. Brand, late deputy auditor. has resigned to engage in the feed business here and It is reported that he is likely to be succeeded by City Treasurer Van Wyck, whose term expires December 31. The postponed county teachers' institute for 1895 is to be held next week. The city schools, both here and in Fairhaven, closed Friday night until after the holidays.

16. January 5, 1896 The Seattle Post-Intelligencer Seattle, WA
Article from The Seattle Post-Intelligencer, January 5, 1896

Click image to open full size in new tab

Article Text

The Bennett National Bank of Whateom has reopened under conditions which should commend It strongly to the confidence of the people. The national bank examiner states that in all his experience he did not know of a suspended bank the affairs of which were in such good condition. There is no doubt it suffered only from a momentary scare caused by other institutions. The reorganization is completed by adding some of the strongest men in the bay cities.

17. April 2, 1896 The Islander Friday Harbor, WA
Article from The Islander, April 2, 1896

Click image to open full size in new tab

Article Text

# SUMMONS BY PUBLICATION. In the Superior Court of the State of Washington, for the County of San Juan. S. S. Sumner, Plaintiff, vs. S. R. S. Gray, Alma Gray, Harriette Collier, Jeanette C. Nevans, George H. Williams, George B. Blanchard, as receiver of the First National Bank of Whatcom, Marie D. Grahame, Alma E. H. Gray, The Citizen's Bank of Fairhaven, Legh W. Applegate, Rebecca E. Applegate, John Doe, Jane Doe, Richard Roe and Susan Black, Defendants. The State of Washington, to the said S. R. S. Gray, Alma Gray, Alma E. H. Gray, Harriette Collier and Jeanette C. Nevans, Defendants; You are hereby summoned to appear within sixty (60) days after the date of the first publication of this summons, towit: within sixty days after the 13th day of February, 1896, and defend the above entitled action, in the above entitled Court, and answer the complaint of the plaintiff, and serve a copy of your answer upon the undersigned attorneys for plaintiff, at their office below stated; and in case of your failure so to do, judgment will be rendered against you, according to the demand of the plaintiff, which has been filed with the Clerk of said Court. The said action is brought to foreclose two certain mortgages, given by the defendants, S. R. S. Gray and Alma Gray, to the Guarantee Loan & Trust Company, of Seattle, to secure two promissory notes of the mortgagors to the same company of even date, namely, on the 15th day of February, 1890, one payable in the sum of eight hundred ($800.00) dollars, with interest thereon at the rate of eigth (8) per cent per annum, and the other payable in semi-annual installments of eight ($8) dollars each, aggregating seventy-eight ($78) dollars, which said mortgages and notes were afterwards assigned for a valuable consideration to the plaintiff. The property covered by said mortgages, is situated in San Juan County, State of Washington, and particularly described as follows, towit: All of lots fifty-one (51) and fifty-two (52); lots nine (9), ten (10), ten A (10A), twenty-two (22), twenty-three (23), twenty four (24), twenty-five [25], twenty-six [26], twenty-seven [27], twenty-eight [28], twenty-nine [29], thirty [30], thirty-one [31], thirty-two [32], thirty-three [33], thirty-four [34], thirty-five [35], thirty-six [36], thirty-seven [37], thirty-eight [38], thirty-nine [39], forty [40], forty-one [41]. forty-two [42], and forty-three [43]; blocks seventeen [17], eighteen [18] nineteen [19], and twenty [20]; lots two [2] and three [3], and M. V. and X, according to the plat of the first and second addition to the village of De Haro, situated in East Sound, San Juan County, State of Washington. STRUDWICK & PETERS, Plaintiff's Attorneys. Postoffice address, 610 Bailey Building. Seattle, King County, State of Washington. First publication Feb. 13, 1896.

18. June 9, 1896 The San Francisco Call San Francisco, CA
Article from The San Francisco Call, June 9, 1896

Click image to open full size in new tab

Article Text

BANKS AS CREDITORS, Court of Appeals Gives Them the Preference Over Common Depositors. By the Decision Rendered It Is Safe for One Bank to Loan Money to Another. The United States Court of Appeals, Judges Hawley, Gilbert and Ross on the bench, handed down an important decision yesterday affecting the liability of one bank to another in the event of failure. The title of the suit as it appeared in the appellate court was "George B. Blanchard, receiver of the First National Bank of Whatcom (Wash.), vs. the Commercial Bank of Tacoma." By the decision just rendered banks are made preferred creditors. Some months ago the First National Bank of Whatcom was placed in the hands of & receiver, George B. Blanchard being named for that position. Four months prior to this act the Whatcom bank borrowed $10,000 from the Commercial Bank of Tacoma, agreeing to return the same within twelve months, with 10 per cent added. The crash came, however, before that time and the Tacoma people found themselves simply one of many creditors. Later, on the advice of counsel, they instituted suit against the receiver of the defunct institution to recover the amount loaned. The case was tried in the United States District Court and a judgment rendered in favor of the plaintiffs. Receiver Blanchard appealed the case on the ground that it made preferred creditors of the successful litigants. The Court of Appeals reviewed the deliberations of the District Court, returning the decision already mentioned. The importance of the decision is found in the fact that heretofore a bank loaning money to a sister institution has in the event of the failure of the borrower been compelled to take its chances with common creditors, depositors, etc. The conclusion just reached, however, makes every bank perfectly safe, so far as money loaned to each other is concerned. The opinion was read by Judge Hawley and concurred in by Judges Gilbert and Ross.

19. July 23, 1896 The Islander Friday Harbor, WA
Article from The Islander, July 23, 1896

Click image to open full size in new tab

Article Text

# SHERIFF'S SALE OF REAL ESTATE. By virtue of an order of sale issued out of the Superior Court of the State of Washington for the County of San Juan, and to me directed and delivered, for a judgment rendered in said Court on the 1st day of July, A. D. 1896, in favor of S. S. Sumner, plaintiff, and against S. R. S. Gray, Alma Gray, Harriet Collins, Jeanette C. Nevans, George H. Williams, Geo. B. Blanchard as receiver of the First National Bank of Whatcom, Marie D. Graham, Alma E. H. Gray, The Citizen's Bank of Fairhaven, Legh W. Applegate and Rebecca E. Applegate, defendants, for the sum of ($1337.15-100) with interest at the rate of 12 per cent per annum from said first (1st) day of July, A. D. 1896, and the further sum of $34.30-100 costs of suit I have levied upon the following described real estate, towit: All of Lots fifty-one (51) and fifty-two (52), Lots nine (9), ten (10), ten A (10A), t.venty-two (22) twenty-three (23), twenty-four (24), twenty-five (25), twenty-six (26), twenty-seven (27), twenty-eight (28) twenty-nine (29), thirty (30), thirty-one (31), thirty-two (32), thirty-three (33), thirty-four [34], thirty-five [35], thirty-six [36], thirty-seven [37], thirty-eight [38], thirty-nine [39], forty [40], forty-one [41], forty-two [42] and forty-three [43], Blocks seventeen [17], eighteen [18], nineteen [19], and twenty [20], Lots two [2] and three [3], and V, and X, according to the plat of the first [Ist] and second [2d] addition to the village of De Haro, situated in East Sound, San Juan county, state of Washington. Notice is hereby given that on Saturday the 22nd day of August, A. D. 1896, at the hour of ten o'clock A. M. of said day, at the Court House door, in Friday Harbor, in said County of San Juan, I will sell all the right, title and interest of the said S. R. S. Gray, Alma Gray, Harriette Collier, Jeanette C. Nevans, George H. Williams, George B. Blanchard as receiver of the First National Bank of Whatcom, Marie D. Graham, Alma E. H. Gray, The Citizen's Bank of Fairhaven, Legh W. Applegate and Rebecca E. Applegate, defendants in and to the above described real estate, at public auction, to the highest and best bidder, to satisfy said execution and all costs. Given under my hand this 20th day of July, A. D. 1896. NEWTON JONES, Sheriff of San Juan County, Washington. First publication July 23, 1896.

20. September 15, 1896 The Morning Times Washington, DC
Article from The Morning Times, September 15, 1896

Click image to open full size in new tab

Article Text

BUSINESS FIRMS EMBARRASSED. Minneapolis, Minn. Sept. 14.-A. F. & L. E Kelly, real estate and mortgage loan brokers made an assignment today. Their liabilities are estimated at from $100,000 $150,000. Assets unknown. Knoxville, Tenn., Sept. 14. - Cullen & Newman, extensive china and glassware importers, assigned today. Liabilities are a quarter of a million dollars, with no preferences. Arbuckle Bros. are the largest creditors, having a claim of $30,000. Amount of assets unknown, but the firm will probably have enough to pay in full. New York, Sept. 14. - Coffin, Alteruus & Co., ary goods commission merchants of Worth street, this city, and also of Phila. delphia, assigned today in this city to John Lowber Welsh of Philadelphia. Laurens, Jenkin & Peter P. Krummeich, doing business as the Union Bottling Company, this city, assigned today. Their crouble is ascribed to the Raines law, which cut off a large partof their business. Liabilities, $40,000; nominal assets, $10,000. Huntingdon, Pa., Sept. 14.-The H. H. Lane Manufacturing Company, makers of Juniata bicycles, made an assignment today. with liabilities at $8,000, and assets, $5,000. John R. Flenner was appointed assignee. New Whatcom. Wash., Sept. 14.-Heavy withdrawals caused the suspension of the Bennett National Bank today. The liabilities are about $50,000, while the assets are said to be more than sufficient to meet all claims.

21. September 18, 1896 The Corvallis Gazette Corvallis, OR
Article from The Corvallis Gazette, September 18, 1896

Click image to open full size in new tab

Article Text

NEW WHATCOM BANK. Second Suspension of Bennett National Within a Year. New Whatcom, Wash., Sept. 16.The Bennet National bank posted notice of suspension this morning, "on account of the withdrawal of deposits beyond its power to respond." The notice further says that "All depositors will be paid in full." When called upon by the Associated Press correspondent, the officials, while not ready to make a detailed statement, said that the total liabilities are, in round numbers, $50,000, and the assets approximately $125,000, of which $90,000 is in bills receivable. No paper is hypotheoated, and it is believed that the assets are more than sufficient to meet all claims. The statement of the bank's affairs at the close of the business July 14, showed deposits of over $106,000, and the cash resources of $52,000. Since then more than half of the deposits have been withdrawn, the cause being generally ascribed to the general lack of confidence, due to financial agitation. This is the second suspension of the Bennett bank within a year, the heavy run of November 4 and 5 last, due to the failure of the Bellingham Bay National, having forced it into the hands of a receiver for about six weeks. It reopened December 19.

22. November 12, 1896 The Worthington Advance Worthington, MN
Article from The Worthington Advance, November 12, 1896

Click image to open full size in new tab

Article Text

There were 230 business failures in the United States in the seven days ended on the 6th, against 270 the week previous and 280 in the corresponding period of 1895. After 46 years of diligent search Charles Thompson, of Lenox, N. J., has been united with his brothers and sisters, from whom he was separated when only 11 years of age. The Volunteers of America, the Ballington Booth section of the Salvation Army, were incorporated with the secretary of state at Albany, N. Y. Louis A. Brown and Harman Shepers were fatally injured in a mine in Cripple Creek, Col., by a premature explosion. Capt. Hatfield, the noted outlaw of West Virginia, who has murdered 17 men in the past 20 years and has never yet entered a courtroom, was placed in jail at Huntington. The famous steam tug and alleged Cuban filibuster Three Friends was seized at Jacksonville, Fla., on advices from the treasury department, charged with violation of the neutrality laws. William H. Treworgy, lumber dealer in Boston, failed for $300,000. Two men and a boy who were stealing a ride on an Erie freight train were instantly killed near Wellsville, N. Y. The plant of the Boston Bridge company, situated in Cambridgeport, Mass., was burned, the loss being $100,000. Inspector Gen. Breckinridge, of the army, in his annual report shows that accounts of disbursing officers aggregating over $72,000,000 have been examined during the year. The annual report of Frank H. Jones, the first assistant postmaster-general, shows that the total number of presidential offices July 1 last was 3,651. For the fiscal year ending June 30, 1898, the report asks for appropriations of about $43,000,000. The Iowa legislature will meet in ex-*ra session at Des Moines January 19 next. James Michaels rode ten miles on a bicycle at New Orleans in 19:25, breaking the American record, and made five miles in 9:12, breaking the world's record. All railway records between Chicago and the Mississippi river were broken by the Rock Island Railroad company, which ran a special train from Rock Island to Chicago, a distance of 181 miles, in 3 hours and 30 minutes. In a fierce storm the three-masted schooner Waukesha went to pieces off Muskegon, Mich., and Capt. Corbett and six sailors were drowned. P. W. Strader has been appointed receiver of the Bennett national bank of New Whatcomb, Wash. Dispatches from all sections of the land announce resumption of work on full time with full forces by industries of all kinds. Otis V. Thomas, W. B. Peters and Willis H. Connor, members of an organized gang of forgers, were arrested in New York. The dry goods establishment of Lawrie & Robson at Indianapolis was burned, the loss being about $100,000.