Used the contemporaneous press dates and the known government receivership date for timing.
Events (5)
1.October 29, 1890Chartered
Source
historical_nic
+18 years
2.October 10, 1908Run
Cause
Bank Specific Adverse Info
Cause Details
Suspicion of forgery/defalcation by cashier J. W. Scriber (news of a forged $2,000 note triggered withdrawals).
Measures
Cashier ordered the bank closed (refused to open) to avoid an anticipated larger run.
Newspaper Excerpt
Some deposits were withdrawn Saturday, but not enough to affect the bank seriously. However, it was feared a run would occur today
Source
newspapers
+2 days
3.October 12, 1908Suspension
Cause
Bank Specific Adverse Info
Cause Details
Refusal to open due to fear of a run amid suspicion of cashier's dishonesty and alleged forged note.
Newspaper Excerpt
This morning the Farmers' & Traders' National bank of this city failed to open its doors ... Scriber ordered the bank closed today.
Source
newspapers
+1 day
4.October 13, 1908Receivership
Newspaper Excerpt
Receiver Nieder (Neidner) appointed; receiver will take charge of the defunct institution (reported later in October). The bank is referred to as suspended/defunct and a receiver was appointed thereafter in contemporary reports and government records indicating receivership on 1908-10-13.
Source
newspapers
same day
5.October 13, 1908Receivership
Source
historical_nic
Newspaper Articles (24)
1.October 12, 1908East Oregonian : E.OPendleton, OR
Click image to open full size in new tab
Article Text
La Grande, Ore., Oct. 12.-(Special.)-This morning the Farmers' & Traders' National bank of this city failed to open its doors and a bank examiner will be here tomorrow to inquire into the condition of its affairs. The refusal of the bank to open its doors this morning was due to the fear of a run caused by a general suspicion that has been aroused as to the honesty of the bank's cashier, J. W. Scriber. Forgery Is Suspected. Last Friday N. K. West, a prominent merchant of this city, received notice from the First National bank at Elgin informing him that they held a note "signed by him for $2000 and in favor of the Farmers' & Traders' national. Knowing he had never issued such a note, Mr. West called upon Scriber to explain. He was then informed by Scriber that the affair would be attended to and for him, West, to think no more about it. Auto Race to Elgin. However, Mr. West was not satisfied and securing an auto started for Elgin to investigate. At the same time Scriber also started out by auto for Elgin in hopes of beating West to that place. On the way to Elgin West's auto collided with a buggy and as a result Scriber beat him to Elgin by half an hour. Reaching the bank Scriber secured the note and the Elgin bankers are now non-committal regarding the matter. Suspicion Causes Run. Saturday the news of West's experience became known in La Grande and suspicion became aroused as to the safety of Scriber's bank. Some deposits were withdrawn Saturday, but not enough to affect the bank seriously. However, it was feared a run would occur today and in consequence Scriber ordered the bank closed today. Today Scriber is reported to be suffering from nervous prostration and is ill at his home. However, in an interview with the La Grande Observer, he declared he would use all his private means to protect the bank's depositors and furthermore declared that the bank has ample means to pay off every depositor at full face. Bank Is Solvent. The last statement issued by the bank September 23, showed the bank to be solvent. At that time the deposits amounted to $190,000 and the notes and securities to $161,000. Cash amounting to $50,000 was then on hand or available. It is the general opinion in La Grande that a reciver will be appointed to take charge of the bank's V affairs. However, it is not believed the depositors will suffer at all undess further irregularities are discovered. La Grande's other banks, of which there are two, are in stronger condiG tions than at any time in the past. No fears whatever are entertained d for their safety. h
2.October 12, 1908East Oregonian : E.OPendleton, OR
Click image to open full size in new tab
Article Text
LA GRANDE BANK FAILS TO OPEN Suspicion as to Honesty of Bank's Cashier Causes Run and Doors Are Closed. SENSATIONAL AUTO RACE FIGURES IN TRANSACTIO J. W. Scriber, Cashier of Farmers' and Traders' Bank, Suspected of Forging a Large Note-Race to Elgin for Possession of Note Results in Smashup-News of Peculiar Transaction Leaks Out and Run Ensues.
3.October 15, 1908Heppner GazetteHeppner, OR
Click image to open full size in new tab
Article Text
NO. 1429 LA GRAND BANK IN TROUBLE f Suspicion as to Honesty of Cashier. -Monday morning the Farmers' & Traders' National bank of La t Grande, failed to open its doors. The refusal of the bank to open its doors was due to the fear of a run caused by & general euspicion that has been aroused as to the honesty of the bank's cashier, J. W. Scriber. Last Friday N. K. West, a prominent merchant of La Grande, received notice from the First National bank of Elgin informing him that they held a note signed by him for $2000 and in favor of the Farmers' and Traders' national. Knowing he had never issued such a note, Mr. West called upon Scriber to explain. He was then informed by Scriber that the affair would be attended to and for him. West, to think no more about it. However, Mr. West was not satisfied and securing an auto started for Elgin to investigate. At the same time Scriber also started out by auto for Elgin in hopes of beating West to that place. On the way to Elgin West's auto collided with a buggy and as a result Scriber beat him to Elgin by half an hour. Reaching the bank Scriber secured the note and the Elgin bankers now non-committal regarding the matter. Saturday the news of West's exexperience became known in La Grande and suspicion became aroused as to the safety of Scriber's bank. Some deposits were withdrawn Saturday, but not enough to affect the bank seriously. Scriber is reported to be suffering from nervous prostration and is ill at bis home. However, in an interview with the La Grande Observer, he declared he weuld use all his private means to protect the bank's depositors and furthermore declared that the bank has ample means to pay off every depositor full face. The last statement issued by the bank September 23. showed the bank to be solvent. It is the general opinion in La Grande that a receiver will be appointed to take charge of the bank's affairs. However, it is not believed the depositors will suffer at all unless further irregularities are discovered. La Grande's other banks, of which there aretwo, are in stronger conditions than at any time in the past. No fears whatever are entertained for their safety.
4.October 17, 1908The Morning AstorianAstoria, OR
Click image to open full size in new tab
Article Text
LA GRANDE, Or., Oct. 16.-J. W. Scriber, cashier of the Farmers' & Traders' National Bank of this city was this morning placed under arrest, charged with embezzlement of $12,225.25 of the funds of the bank. It is also thought missing securities and papers will largely increase the amount of the defalcation. The arrest was made by United States Marshal Reed in person. Mr. Scriber was taken in custody at his home, and will be brought to Portland this evening. A complaint was filed in this case by United States Attorney John McCourt, after he had received a preliminary report of the condition of the bank from Claud Gatch, National Bank Examiner, who has been on the ground for some time, and after he had held a telephone conversation with Deputy United States Attorney Evans, whom he sent to La Grand on Wednesday last. "It's the same old story, an ingenious cashier, a board of directors that neither knew its duty nor did it, and over-confident bank examiners." These few words are all that can be wormed from the lips of National Bank Examiner Claude Gatch of Salem. who has been in charge of the suspended Farmers' & Traders' National Bank since last Tuesday morning. Scriber is a widower. He has three sons, ranging from 12 to 23 years of age. One is in Salem and the other two in La Grande.
5.October 22, 1908The News=recordEnterprise, OR
Click image to open full size in new tab
Article Text
With guaranteed bank deposits, the Farmers and Traders bank at La Grande would not have closed its loors, there would have been no run on the bank as the depositors would have had no fear of receiving their noney. The expenses of a receiver ship would have been avoided and very expensive litigation of various kinds. And above all, there would iave been an inspection that inspected, and the stealing of Scriber would have been stopped years ago.
6.October 27, 1908The Evening StatesmanWalla Walla, WA
Click image to open full size in new tab
Article Text
Scriber Made a Good Haul LA GRANDE, Oct. 27.-The fact has just become known that the total defalcations of J. W. Scriber, cashier of the suspended Farmers and Traders' National bank will reach approximately $125,000. It was thought at first they would not exceed one-third that amount. It is reported now that the depositors can not get more than 20 cents on the dollar. Receiver Nieder, recently appointed, will take charge immediately. It is reported today. that the night before the first exposure Scriber burned $70,000 in notes which he believed were bad. In his haste in covering his tracks, he also burned good notes valued at $20,000. it is said.
7.October 27, 1908The Spokane PressSpokane, WA
Click image to open full size in new tab
Article Text
$120,000 SHORTAGE Scriber's Defalcation Has Reached Enormous Figures. LA GRANDE, Ore., Oct. 27.-The fact has just become known that the total defalcations of J. W. Scriber, cashier of the suspended Farmers & Traders' National bank, will reach approximately $120,000. It was thought at first that his shortage would not exceed a third of that amount. Now depositors will not get more than 20 cents on the dollar. Receiver Neider reported today that the night before the first exposure Scriber burned $70,000 in notes which he believed bad. In his haste to cover his tracks he also burned good notes valued at $20,000; it is said.
8.October 27, 1908The Seattle StarSeattle, WA
Click image to open full size in new tab
Article Text
CASHIER SHORT $120,000 (By United Press.) LA GRANDE Ore, Oct. 27.-The starting fact became known today that the total defalcations of J. W. Scriber, cashier of the suspended Farmers' and Traders' National bank, located here, will reach approximately $130,000. When the bank closed two weeks ngo, it was thought they would not exceed onethird of that amount. Following this announcement came expressions of fear on the part of depositors that they will not recelve more than 20 cents on the dollar, if they get that much. Receivor Nelder will take charge of the institution at once. Scriber's alleged defalcations are varied and Innumerable, ramifying from forgeries to other shrewd methods of embezzlement. He is said to have used certificates of deposit, previously and consecutively numbered, that were far beyond regular numbers,
9.October 27, 1908Coeur D'alene Evening PressCoeur D'alene, ID
Click image to open full size in new tab
Article Text
SCRIBER SHORTAGE $120,000 No Bank Guarantee Law to Protect Depositors. LA GRANDE, Ore., Oct. 27.-The fact was just made known here today that the shortage of J. W. Scriber, cashier of the suspended Farmers' & Traders' bank will reach approximately $120,000. It was thought at first that the amount would not exceed a third of that sum, but since Receiver Neider took charge of the defunct institution he ascertained that the night before Scriber's fraudulent manipulation of the bank's money was exposed, that he had burned $70,000 worth of notes, believing them to be the products of his forgery, and that among them were notes amounting to $20,000 which were good. It is presumed that Scriber in his haste to cover up his tracks overlooked the good notes. According to a statement made by the receiver this morning the depositors of the bank will not receive in excess of 20 cents on the dollar.
10.October 28, 1908The Wenatchee Daily WorldWenatchee, WA
Click image to open full size in new tab
Article Text
ARRESTED ON NEW CHARGES (Special to the World.) La Grande, Oregon, October 28.The United States marshal arrived tonight to arrest the defaulting cashier of the suspended Farmers & Traders' National bank on additional charges. It is known that the shortage will be considerably over $100,000. Bank Examiner Wilson will finish his work tonight and the bank will be turned over to receiver Neiker tomorrow. Mrs. T. N. Murphy, who is rumored to be engaged to him, has $12,000 up on Scribner's bond, and it is said that he told her to take her money out a week before the crash.
11.October 28, 1908The Spokane PressSpokane, WA
Click image to open full size in new tab
Article Text
SCRIBER ARRESTED AGAIN LA GRANDE, Ore., Oct. 28.-J. W. Scriber the defaulting cashier of the suspended Farmers & Traders' National bank was arrested again yesterday on another charge placed against him by O. F. Coolidge one of Scriber's bondsmen. He was immediately arraigned and was allowed further time to plead. He gave additional bonds of $5,000 for his release.
12.November 13, 1908The Athena PressAthena, OR
Click image to open full size in new tab
Article Text
Scriber Gives Bonds. J. W. Scriber, formerly cashier of the wrecked Farmers' and Traders' bank of La Grande, Ore., was released from custody on bonds amounting to $40,000 provided by friends and relatives. In connection with bis release it has been given out upon what is regarded as reliable authority that several conferences have been held by Scriber's relatives and friends in view of making good the entire indebtedness of the ex-banker. It is also rumored that be will plead guilty when arraigned.
13.November 26, 1908The Spokane PressSpokane, WA
Click image to open full size in new tab
Article Text
OWNERS OF DEFUNCT TO BE ASSESSED LA GRANDE, Ore., Nov. 26.Receiver Walter Neidner of the defunct Farmers' & Traders' National bank, will notify stockholders of the suspended institution during the next week that an assessment of 100 per cent will be levied on all stock. The $60,000 capital stock will be used to defray exxpenses of the receivership and apply on the repayment of the depositors. Only Scriber, the bankrupt cashier of the defunct bank, cannot meet the assessments.
14.December 22, 1908East Oregonian : E.OPendleton, OR
Click image to open full size in new tab
Article Text
DEFUNCT BANK OWNERS PAY HEAVY ASSESSMENT La Grande, Ore., Dec. 22.-Walter Nicner receiver of the defunct Traders & Farmers National Bank has received $12,750, of which $6000 was contributed by George Ackles, as a payment on a hundred per cent assessment levied on stockholders.
15.December 22, 1908The Evening StatesmanWalla Walla, WA
Click image to open full size in new tab
Article Text
Stockholders Are Paying Up LA GRANDE, Ore., Dec. 22.-Walter Niedner, receiver of the defunct Traders & Farmers' National bank, has received $12,750, of which $6000 was contributed alone by George Ackles, as payment on a hundred per cent assessment levied on stockholders.
16.December 23, 1908The Spokane PressSpokane, WA
Click image to open full size in new tab
Article Text
ASSESS OWNERS 100 PER CENT I LA GRANDE, Ore., Dec. 23.Walter Niedner, receiver of the defunct Farmers' and Traders' National bank, received $12,750, of which $6,000 had been contributed alone by George Ackles, as payment on the 100 per cent assessment levied on the stockholders.
17.January 15, 1909East Oregonian : E.OPendleton, OR
Click image to open full size in new tab
Article Text
# SENATOR OLIVER
# HATES TO PAY
LA GRANDE LEGISLATOR
OBJECTS TO ASSESSMENT
Government Will Have to Bring Suit
to Collect Liability of Politician
Shortly After Legislature Closes
Session—Oliver Says He Tried to
Change Management.
La Grande, Jan. 14.—State Senator
Turner Oliver balks at meeting the as-
sessment levied on him by the comp-
troller of the currency as a stockhold-
er in the defunct Farmers' & Traders
National bank, and government pro-
ceedings will be instituted at a nearby
date. The actual date of commenc-
ing the prosecution, which can only
be averted by Oliver meeting the as-
sessments due to date, will be deter-
mined by the government, but it can-
not be until 15 days after the legis-
ture adjourns, as any solon is ex-
empt by statute that many days after
legislature adjourns.
Oliver's Ground.s
Turner Oliver has presented his
grounds for refusing to meet the as-
sessment levied on his 40 shares,
amounting to $4000, in a lengthy let-
ter to Receiver Niedner. In it he af-
firms that he repeatedly attempted to
have the directorate and official slate
of the now defunct bank reorganized.
As a stockholder he desired a change,
and affirms that had the change been
made when asked for, the bank would
not have failed. The allegations
made and the exceptions taken, are
now in the hands of the comptroller,
as the receiver forwarded the entire
letter to the government.
His Claim's Validity.
It will be a matter for the courts
to decide whether or not Oliver's al-
legations and exceptions are valid. To
termine this, as stated before, pre-
sumably early in March,
18.January 28, 1909The Hood River GlacierHood River, OR
Click image to open full size in new tab
Article Text
Bank to Pay 40 Per Cent. La Grande - There is money enough now on hand in the receiver's charge to pay 40 per cent dividend to depositors in the suspended Farmers' & Traders Bank, of this eley. This dividend will be paid early in March. City Treasurer Wright has received a communication from Washington saying his claim as treasurer for the city is no better than individual deposits. In all, there were $3382 of city fund in the bank. Mr. Wright states that he will make full payment to the city when the first dividend is paid. The county treasurer, sheriff and city treasurer have a total of $15,000 to repay because of the bank failure. This requirement will leave County Treasurer John Frawley practically penniless.
19.February 22, 1909East Oregonian : E.OPendleton, OR
Click image to open full size in new tab
Article Text
Reads Like Fiction. The history of the $6000 which Receiver Walter Niender is seeking to recover from Asa B. Thomson, reads like a bit of fiction. At the time the note was issued Thomson was receiver of the land office at La Grande. There was an alleged conspiracy among a number of prominent business men of Heppner to obtain a large tract of government land, but just as the crowd was about to consummate the deal the Heppner flood came and several of the ringleaders of the alleged conspiracy perished in the flood. For a time, it is said, the deal was postponed, but when it was revived, Thomson and J. W. Scriber, ex-cashier of the Farmers & Traders' National bank, who is now awaiting indictment before the Federal grand jury, and several others were taken into the deal. At this time Thomson was using Scriber's bank as a depository for the government funds, and, according to the story that Scriber has told since the bank was wrecked, Thomson barrowed the $6000 in order to enter the timber deal with the Heppner crowd. The $6000 was borrowed from the Farmers' & Traders' National bank by Thomson, with only his (Thomson's) signature for security, according to Scriber.
20.April 1, 1909Heppner GazetteHeppner, OR
Click image to open full size in new tab
Article Text
First Dividend. La Grande Bank. La Grande-Schedules and pro rate dividends to be issued by the receiver of the Farmers and Traders' bank will soon be speeding toward Washington, to be converted into checks on the receivership. The amount of the first dividend will be 40 per cent, as new claims have appeared against the bank and cannot be settled except by the courts.
21.March 29, 1910East Oregonian : E.OPendleton, OR
Click image to open full size in new tab
Article Text
FIRST SESSION OF U. S. COURT IN PENDLETON NEXT TUESDAY For the first time the United States La Grande versus F. C. Bramwell; Bausman & Keller and W. M. Ramsey circuit court will convene in Pendleattorneys for the plaintiff; J. D. Slaton for a jury session next Tuesday ter, for the defendant, morning, April 5. Judge R. S. Bean In addition to trying out these two will be upon the bench and at least cases arguments will also De made in two cases will be tried out. As shown some of the Indian allotment cases by the docket now in the possession that are pending. All told there are of Mrs. Johnson, clerk of the court, 14 of these cases though some of them the cases are as follows: Minnie are not at issue at present. The testiJoshua versus the Northern Pacific mony in these cases was taken some R. R. company; McCourt & Phelps attime ago before a referee and the rectorneys for the plaintiff; Carr & Kerr ords are now in the local office of the for the defendant. federal court and are open to the inWalter Neidner, receiver for the spection of the attorneys interested in Farmers & Traders national bank of the cases.
22.April 1, 1910The Athena PressAthena, OR
Click image to open full size in new tab
Article Text
# U. S. Court Session.
For the first time the United States circuit court will convene in Pendleton for a jury session next Tuesday morning, April 5. Judge R. S. Bean will be upon the bench and at least two cases will be tried out, as shown by the docket now in the possession of Mrs. Johnson, clerk of the court as follows: Minnie Joshua versus the Northern Pacific R. R. company; McCourt & Phelps attorneys for the plaintiff; Carr & Kerr for the defendant. Walter Neidner, receiver for the Farmers & Traders national bank of La Grande, versus F. C. Bramwell; Bausman & Keller and W. M. Ramsay attorneys for the plaintiff; J. D. Slater for the defendant.
23.April 5, 1910East Oregonian : E.OPendleton, OR
Click image to open full size in new tab
Article Text
miles north of Pendleton in October of 1907. She had sued for $15,000. The case being tried today is that of Walter Niedner as receiver of the defunct Traders & Farmers National Bank of La Grande, against F. C. Bramwell, the present receiver at the La Grande land office. The suit is brought to collect a balance of approximately $700 on a $1000 promissory note. The case was called for trial soon after court was convened and the work of securing the jury started. As no publicity had been given to the case and as the venirement had been summoned from all parts of eastern Oregon, the task of securing the twelve men proved to be an easy one and the taking of testimony is now in progress The trial will probably be ended and the verdict returned by tomorrow evening. In the questioning of the jury the name of J. W. Scriber, former cashier of the bank and the man who is accused of wrecking it, was frequently mentioned.
24.April 6, 1910East Oregonian : E.OPendleton, OR
Click image to open full size in new tab
Article Text
# FEDERAL JURY MAY
# BE UNABLE TO AGREE
CASE OF BANK VS.
BRAMWELL IN DOUBT
Judge Bean Advised Verdict Favor-
ing Farmers & Traders Bank But
Jury Hesitates-Arguing Indian
Cases Today.
Though the jury in the case of the Farmers' and Traders' bank against F. C. Bramwell has been out since about 11 o'clock this morning, no verdict has yet been agreed upon and the belief is growing about the court house that a "hung jury" will be the result.
This was a case in which F. C. Bramwell had given his "accommodation" note to J. W. Scriber for the Farmers & Traders National Bank of La Grande. Bramwell claims that it was given an an accomodation to Scriber while the attorneys for the bank's receiver allege that it was given to the bank and that he should be held accountable to the bank for it.
With the exception that the defendant had made some payments to the bank on the note and that the note read payable to the bank, the bulk of the evidence seemed to show that the note was given as an accomodation to Scriber, since he had given his own note and some stock to Bramwell as collateral.
In giving his instructions to the jury, Judge R. S. Bean exercised the prerogrative of a federal court judge and declared that it was the opinion of the court that the jury should find for the bank. Evidently, however, the instructions of the court are not being followed literally since a verdict in accordance with his instructions would have been brought in immediately. The delay is taken as an indication that it will either be a hung jury or that the verdict will be in favor of Bramwell.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
Flag Article for Review
Flag Episode for Review
Farmers & Traders National Bank · Episode ID 445201306
