Merchants National Bank (Great Falls, MT)

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A MONTANA BANK SUSPENDS

The Merchants' National Bank of Great Falls Fails to Open.

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Great Falls Bank Closes

Special to the Globe. GREAT FALLS, Mont., July 24.-The Merchants' National bank of this city closed its doors today at 1 o'clock, and the following notice was posted: "This bank is closed and depositors must await a receiver. We have assets amply sufficient to pay all liabilities. "THE BOARD OF DIRECTORS." The last regular statement showed the bank was low on cash. It was carrying sheepmen heavily, and could not realize fast enough to meet the heavy drain of the last few weeks. Five other banks here are not apprehensive, and some of them. had heavy deposits todav. The capital stock was $100,000; sasets and liabilities are not given.

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Bank Receivers Appointed

The controller of the currency today appointed receivers of insolvent national banks as follows: Charles T. Cates, Jr., receiver of the State National Bank of Knoxville, Tenn.; Louis G. Phelps, receiver of the Merchants' Natonal Bank of Great Falls, Montana.

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Bank Receiver

WASHINGTON, July . 29.-Comptroller Eckels has appointed Louis G. Phelps receiver of the Merchants' National bank of Great Falls, Mont.

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JOTTINGS ABOUT TO WN

A. Porter et conjux has sold to H.B. Reed lot 9. block 48, Northern Pacific addition. for $900. L. C. Stebbins will RO to Cineinnati as the local representative there of the Great Northern railroad. A great forest fire was visible to the north of Helena last night. It appeared to be beyond the Missouri river and was spreading out. The Frances E. Willard W. C. T. U. will give a lawn party on next Thursday evening. Aug. 10, at the residence of Mrs. Stewart, Northern Pacific depot. Inspectors Wayland and Clement are expected back to-day from Seattle with Milt Wall, the colored man who confessed to robbing the registered-mail sacks at Livingston. An official circular from President Oakes, of the Northern Pacific, confirms the report that Chief Engineer Kendrick has been appointed general manager in place of W. S. Mellen. Ed Lafferty, the well known Helena horseman, drove the Oakwood farm's W. Wood in a winner in three straight heats 11 few davs ago at Oakland, Cal., in 2:201/5. 2:12 / and 2:121/6 The state treasurer has began suit against H. P. Rolfe, Will Hanks, Wm. Ulm, S. U. Dickey, C. H. Austin, E. R. Clingan, and John Sinolair, directors of the suspended Merchants bank at Great Falls, to recover $18,000 the state had on deposit in that bank when it closed. The entire force of olerks in the county recorder's oflice is now HB work at nights in changing the figures in the assessment books to conform to the 25 per cent raduo. tion ordered by the county board of equalization. The work has to be finished by a week from next Monday. Peter Maher, the heavyweight pugilist, will be at the opera house Monday night, with "Denvel" Ed. Smith. for an exhibition. Tae most interesting part of the programme will be a go between Maher and Ike Haves, the colored heavyweight Hayes gets $100 if he stands before Maher for four rounds, and the "talent" are betting that he wink the money. The 6 ntiment in favor of receiving city employes' warrants in payment of city taxes and licenses found great favor yester day, and the council will without doubt take steps looking to that end on Tuesday. Employes who could stand the waiting generally held on to their warrants yesterday and refused to stand the exorbitant ahave exacted by the money brokers. With city warrants in the same position as cash for paying taxes and licenses the merchants who receive them for goods will get the benefit of the interest up to the day they are turned into the treasurer.

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THE SCHOOL TRUSTEES MEET

A School Ordered at Watson-Action on the Black Eagle Falls School Was Deferred.

A Helena Man Wants an Option on the Bonds-Cooper and Kellison in a Wrangle.

An adjourned school board meeting was held last night. Present, Trustees Wright, Kellison, Atkinson, Cooper, and Gockstetter. The first named acted as chairman in the absence of President Hanks. A school was ordered at Watson for six months and W. G. Frisbie was appointed teacher at $50 per month. Kellison brought up the matter of the Black Eagle Falls addition school, which was asked for at a previous meeting, and stated that there were twenty-two children living in that vicinity. The matter was laid one side until a committee, consisting of Cooper, Atkinson, and Kellison, had time to visit the Boston & Great Falls school and ascertain whether the children can be accommodated there, where they are supposed to attend.

A. B. Cook of Helena appeared before the board and asked for an option for fifteen days on the $80,000 high school bonds, which are lying in the vault of a Chicago bank. No action was taken in the matter, but it brought out a lengthy discussion of the bond affair in which all the trustees participated. Wright read a letter from the assistant cashier of the American Exchange National bank of Chicago. That gentleman stated he had received severel inquiries from Great Falls in reference to the bonds, but in the future only communications which came through the receiver of the Merchants National bank would be considered.

Attorney Cooper said the receiver of the Merchants bank had been advised by the Chicago bank that the status of the bonds was being looked into. Mr. Cooper gave it as his opinion that the bonds would be here in ten or fifteen days.

Kellison made a motion that the county attorney be requested to be present at the next meeting of the board, as he is by law its only legal adviser. This called forth a sharp debate between Cooper and Kellison, during which each paid his compliments to the other. The motion prevailed. Some routine matters were considered, and then the meeting was enlivened by another one of Kellison's motions. It was to the effect that the Townsite company should be compelled to give a bond for a deed to the site of the proposed new high school. The chair refused to entertain the motion and the meeting was adjourned.

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Bank President Arrested

HELENA Mon. Oct. 17.- Will Hanks, President of the suspended Merchants' National Bank. of Great Falls, was arrested yesterday on the charge of embezziement. The charge was preferred by 1. G. Phillips receiver of the bank. He was released on $5,000 ball The charge is based on the conversion of $50.000 worth of stock in the Cascade National Bank. pledged to his bank to secure a loan. Hanks took the pledged stock and got a loan on it for his own use.

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Got Another One

Helena, Mont., Oct. 17.-Will Hanks, president of the suspended Merchant's National bank at Great Falls, has been arrested on the charge of embezzlement. He was subsequently released on $5,000 bail.

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Montana Bank President Arrested

GREAT FALLS, Mont,, Oct. 16.-[Special.] -Will Hanks, president of the suspended Merchants' national bank of this city, was arrested tonight for embezziement on complaint of D. G. Phelps, the receiver. He was released on giving $5,000 bonds.

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Embezzlement Charged

GREAT FALLS, Mon., Oct. 18.-Will Hanks, ex-president of the suspended Merchants National bank, has + been ar rested on the charge of embexzlement. Complaint was made by Receiver L. G. Phelps, and charges that Hanks converted to his own use 50 shares of Case cade bank stock.

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Embezzlement Charged

GREAT FALLS, Mon., Oct. 18.-Will Hanks, ex-president of the suspended Merchants National bank, has been arrested on the charge of embezzlement. Complaint was made by Receiver L. G. Phelps, and charges that Hanks converted to his own use 50 shares of Cascade bank stock.

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Embezzlement Charged

GREAT FALLS, Mon., Oct. 18.-Will Hanks, ex-president of the suspended Merchants National bank, has been arrested on the charge of embezzlement. Complaint was made by Receiver L. G. Phelps, and charges that Hanks converted to his own use 50 shares of Cascade bank stock.

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Embezzlement Charged

GREAT FALLS, Mon., Oct. 18.-Will Hanks, ex-president of the suspended Merchants National bank, has been arrested on the charge of embezzlement. Complaint was made by Receiver L. G. Phelps, and charges that Hanks converted to his own use 50 shares of Cascade bank stock.

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Embezzlement Charged

GREAT FALLS, Mon., Oct. 18.-Will Hanks, ex-president of the suspended Merchants National bank, has been arrested on the charge of embezzlement. Complaint was made by Receiver L. G. Phelps, and charges that Hanks converted to his own use 50 shares of Cascade bank S ock.

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A Great Falls dispatch of Oct. 16 says that Will Hanks, president of the Merchants National bank, which recently suspended, was arrested this evening on a complaint sworn out by L. G. Phelps, receiver of the bank, on the charge of embezzlement. He was released on $5,000 bond. \

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ONE OF THE DIRECTORS.

He Wasn't Informed of the Condition of the Accounts of Bank Patrons.

An "Irish Dividend" the Only One Declared by the Merchants.

Bookkeeper Burns Figuring up Hanks' Individual Liability - Indictments Found by the Grand Jury.

The United States court only put in half a day on the trial of Will Hanks yesterday, the jury being excused for the afternoon. Thos. E. Brady, one of the directors of the Merchants' National Bank of Great Falls, wanted to get home on account of sickness in his family. Bookkeeper Brady was allowed to stand aside so that Mr. Brady could go on the witness stand. Mr. Brady testified that he was a director in the Merchants National Bank of Great Falls from the latter part of January, 1892, until the close of the bank. He did not know that W. H. Burgess & Co. had an account at the bank until after its suspension. Hanks had never mentioned the fact to him that Burcess & Co. had ove drawn their account at the bank; nor had witness ever been advised as to Hanks' individual indebtedness until a few days before the bank closed. Cashier Wilt, at the first meeting of the directors after witness was elected, presented a statement to the board of directors, which indicated an excellent condition of affairs, and that a dividend might be expected shortly. On being interrogated by Attorney Carter as to whether a dividend had ever been pail, he eplied that an "Irish dividend" had been declared, and that was all. Witness was asked by J. B. Leslie, assistant prosecuting attorney, if he ever saw a certifente of stock of the Cascade Bank of Great Falls, and said he had not; that he did not know the Merchants bank owned such a certificate of stock. The attorneys for the defense, on cross-examination, endeavored to prove by Mr. Brady that the directors had full knowledge of the condition of the accounts of patrons. The witness, however, testified that the board of directors had no such facts brought to their attention.

Bookkeeper M. S. Buns was recalled. He was made to identify another lot of checks and some more book entries relating to Hanks' individual account at the bank. The prosecution was not through with him when the case was adjourned until Monday. At the time of adjournment witness had run up Hanks' individual indebtedness to something over $20,000. From present indications the case will run for more than a week yet.

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HANKS NOW TURN The Defendant's Story of His Connection With the Merchants Bank of Great Falls. HIS ASSETS WERE ABOUT $120,000. The Reasons Given for Nogotiating the Different Notes and the Transfer of His Ranch. R cross-examination of Dr. was A. concluded The the treasury expert, court yesBarrett. in the United States was government terday and then the against will through with its case with misapprowhom it charges the MerHanks, $25,000 of the funds of Falls priating National bank, of Great opening chants' Carter then made the said that Lawyer statement for the defense. He of rectihad pursued a course Falls Hanks community of Great He tude in the man might be proud of. Merthat any the organization of the the subspoke of in 1890. and of make chants bank who falled to scribers to the stock Hanks was their subscriptions of good prosperous circumstances all as an then credit in and regarded by man. good young business the enterprising of the subscribers to good When some the bank falled to make order to stock subscriptions, of Hanks, in in his their the organization understa put facilitate it was the the own note to which, be carried along until parties. Ing. was sold to other stock should be carried along until the This note Hanks sales of closed. reducing it as when bank made. Then. in 1891, withdraw. stock were Wells decided to Hanks stock. George and R. other directors of the This bank acdecided to take $10,125 up his note in the needed Chicounted for the Later the bank negocago money bank and the $28,000 note was Cartiated. At the beginning Hanks' of indebtedness 1893, Lawyer to $20.- the property bank ter claimed. individually did not exceed worth $120.000. 000. while Then he there had came over session the of country events. most unexpected of long standing, in one with common ample e Houses involved Merchants bank, assets, destructive became ruin. became The involved difficulties and of Great Falls, which beset bank. in the country. general Depositors of sity the withthe through fear or July 1893. the either their deposits. In condition human a con drew Merchants' had foresight reached could dition not have bethe that anticipated control It of was Hanks. transact Mr sactions Carter yond then reviewed with the all bank the and held that and Hanks were had perfectly the legitimat credit of the but institution, of meant, they not to harm to assist it in the course Lobenbusiness Downing and Valentine witnesses for the heimer C. P were the first examined mainly near defense the They value were of considered Hanks' ranch worth acre as to Falls. One knew of Hanks refor Great the other $25,000 on it. fusing $150am to give an testified option to good Hanks repBoth utation witnesses for integrity being now called to the stand. it had The defendant At this point was the prosecution to stand indictment announ ced that counts of the and the charging on the false entries, and harging not to abstraction. four charging conviction on the nine said if that he would ask for conv Col. Sanders ask that the Judge was the instructed case to acquit. the and motion Knowles jury be said Col. he Sanders would took an exHe ception. then began his testimony. in Craw ford Hanks with his birth the story O., in 1860, and time gave he settled Falls went county of his life down in to 1885. the and started into the the in Great He r wards business and Tribune. esta and Insurance granized the Cas- of bank. real in the spring He of 1890 owned Later one-elghth he helped cade the stock the of that Merchants bank. was bank subscribed All the stock organize of the to the Merchants opening of tion the came bank. a to When prior the time for subscribers organiza did not re- in spond. the of stock was not number and of one large block taken. Cashier of it part particular his note to carry to carry the Wells put in put in his note was that as and Hanks underst erstanding disposed of the rest. The stock was taken from fast as the should be then traced to amount of received the notes. reduced Hanks until it got by either his note $2,500. it was when it was replaced dow the Benson note Hanks said his 160 prop- acre half On Jan 1891. sisted of his interest erty holdings near Great coal Falls land a Color at Nelthe 320 acres of townsite and Columbia to in in the Fris Falls townsi Great addition in the hart Highland park interest himself of inFalls the Fullerton insurance worth busing $5,000 worth sixth $2,500; nd F in the Liberty the Goodric mine drich Lumber 25,000 shares comthe have pany, worth in $1,250: Cornucopia some Mining realized comor which in which he 40 would cents share 18 and 20 and the third time he did sell for Baltimore, and Six Little Jodes inmarter the House worth $3,000; Maginnia Maiden the bond 25,000 on shares of the Prosp and silver share; 50,000 Helt company Mining a 10 share had of com the Mining Savage cents to worth Bear Paw, in the intere Altoget his up that 1, on 1893, March his in 1894 him that half the other half of the Hershtie de he said of the 150 acres Hershfield the MerH the note By doing NO bank of Helena relief from the Hel- All at Great get Falls bank

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Fifteen per cent of the school children of Flathead county will have their books furnished them, according to the vote just taken on the question of free text books. The ranges are in excellent condition and stock rolling fat in the famous Judith basin.

The Cascade county commissioners have ordered suit brought against the bondsmen of ex-Treasurer McClelland, for county funds deposited with the defunct Merchants' National bank of Great Falls. There is said to be a shortage of over $30,000 in that connection.

Since the planting of so many trees in Billings the increase in the number of singing birds of all kinds is remarkable. Now the lawns and shrubbery are full of the creatures, and the citizens are treated to one of nature's concerts every morning.

The growth of the grain in the past three weeks has been wonderful. Fields where two or three weeks ago there seemed to be hardly a blade of grain, are now covered with tall, thrifty oats. In the cleared lands below Frenchtown, in the vicinity of Hudson and down as far as Nine Mile, the grain is splendid and the ranchmen are happy, according to reports received at Missoula.

The Ashley Lake Irrigating Company is at work on what will be the largest irrigation enterprise in Flathead county so far. The ditch will be about nine miles in length and will cover some 6000 acres of land northwest of town. It is taken from Ashley creek near the site of old Flathead City, and runs around the foothills to the northwest.

As judged by this year's assessment, Teton county is more prosperous now than last year. The assessment as returned by the county assessor to the seate board of equalization shows an increase over that of last year of $144,396. The total assessment as returned is $1,749,726, of which $1,053,444 is taxed against personal property and $696,282 against real estate.

The assessment book of Yellowstone county has just been completed. It shows a gain over last year of $260,639. The total personal property returned, including money, is $1,575,753; real estate and improvements, $1,812,477; total, $3,388,230. To this total will be added the amount assessed to the several railways running through the county by the state board of assessment. This amount is not known at present, but last year it was as follows: Rocky Fork, $5500; Big Horn Southern (Burlington), $188,360; Northern Pacific, $286,902.