466258791150 46625879
hash
9bb059225f0a0462None
Click image to open full size in new tab
A TACOMA BANK FAILS The Commercial Asks Appointment of a Receiver. IT WILL GO OUT OF BUSINESS. The Crash Precipitated by a Demand for the City Money. Since the Bank of Tacoma Failed There Had Been Steady Withdrawals-The Columbia National and GermanAmerican Deny That the City Has Money on Deposit and Refuse to Pay Checks.
Click image to open full size in new tab
City Asks for a Receiver for the German-American. RESULT OF WARRANT DISPUTE. The Bank Claims That the City Has Overdrawn Its Account. Columbia National Stockholders to Be Assessed Again-All the County Money Is in the Courthouse Vaults -The First National Bank of Puyallup to Liquidate. Tacoma, Oct. 17.-Special.-City Attorney Wickersham and City Treasurer MeCauley today applied to the superior court for the appointment of a receiver of the German-American Safe Deposit and Savings bank. The application was made before Judge Pritchard, on the ground that the institution is insolvent, its refusa! to honor the city treasurer's check for $58.369, the amount claimed to be on deposit, being cited as evidence. Immediately after the case came up the city attorney moved that the case be transferred to Judge Parker's court, it being shown that Judge Pritchard is a stockholder in the Columbia National bank. The court said he was not interested in the savings bank and saw no reason why he should not try the case. After consulting with the attorneys and Judge Parker, Judge Fritchard granted the motion to transfer the case without prejudice, the bank taking an exception. When the matter came before Judge Parker, the court postponed the hearing till tomorrow, saying tnat there was no showing of an emergency and that a full hearing should be had when an appointment of a receiver for a bank is asked. This action on the city's part is the result of a suit brought on Tuesday by the German-American bank, whereby it seeks to settle its account with the city. The bank alleges that ex-City Treasurer Boggs deposited in the bank $80,369 of city warrants between April, 1892. and April, 1894, the city receiving credit for so much cash. Since taking office in April, 1894, Treasurer McCauley has drawn out $22.000 in cash, leaving the balance $58,369. The city has found that under recent decisions the warrants thus placed in the bank are not strictly legal, being issued in excess of the constitutional limit of indebtedness, though they will be ultimately validated. The bank alleges that since the city claims the warrants to be illegal it should not ask the bank to pay the credit so secured in cash, and asks the court to allow the warrants to be set off against the city's credit. If this contention is allowed, the city will owe the bank the $22,000 already drawn out in cash, and it asks for such a judgment. These allegations were again set up today in answer to the city's request for a receiver. The bank denies the allegation of insolvency. Receiver Nolan of the Commercial bank. today asked for an order authorizing him to return to depositors about $1,200 which was deposited Tuesday, the last day the bank remained open. which deposits were kept separate from the other assets. The failure of the Commercial bank and application for a receiver for the German. American bank in nowise affected the other banks of the city. The officers of the German-American bank say they feel confident of winning their suit and continuing in business. The Columbia National bank is preparing to make an assessment on its stockholders, who have already sent over $45.000 here to meet business demands since the council began its agitation regarding city deposits. The assessment will not be completed until certain papers are signed by Controller James H. Eckles, now en route to Washington City from Europe. Every dollar of county money Fas been withdrawn from the Tacoma banks, and is in the county treasurer's vaults.
Click image to open full size in new tab
THE GERMAN-AMERICAN BANK. Decision in the Receivership Sult to Be Entered Today. Tacoma, Oct. 18.-Special.-Judge Parker today heard the application for the appointment of a receiver for the GermanAmerican Safe Deposit and Savings Bank. No evidence was introduced except. the affidavits of City Treasurer McCauley and the members of the finance committee. The treasurer's affidavit recites the refusal of the bank to honor the city check for $58,000. The bank claimed that no cash had been deposited by ex-City Treasurer Boggs. In the arguments. which consumed the entire day. the bank's attorney cited numerous authorities to sustain their posttion that it was not necessary for them to produce the Boggs' warrants. The court intimated that that was about the only point to be considered. ^ decision will be rendered tomorrow at 9 o'clock.
Click image to open full size in new tab
LATE NEWS BY WIRE. Items of General Interest From All Ove the Universe Detroit, Oct. 19.-Major Pingree was renominated for the fourth term by acelamation by the Republicans at their city convention this afternoon. Berlin, Wis, Oct. 19.-Captain David Evans, of the United States revenue marine service, died today of old age. He was relieved a few months ago. New Orleans, Oct. 19.-Last night fire destroyed the National Rye mills and four adjacent buildings on Elysian Field street. The less is estimated at $200,000. It was fully insured. The loss includes $40,000 worth of rye. Bucyrus, O., Oct. 19.-The Columbus, Sandusky and Hocking railroad was sold today to W. B. Hatch and G. W. Sinks, representing the bondholders, for $1,500,500, the sale of a month ago for $4,000,000 upon an irresponsible bid having been set aside Tacoma, Wash., Oct. 19-A receiver was appointed today for the German-American bank. The bank declined to pay the city $68,000, the amount of Its deposits, claiming that warrants which were Invalid, and not cash, had been deposited with the bank. Cambridge, Mass., Oct. 19.-Considerable excitement exists at Harvard over the diecovery of an act of vandalism. some one having stolen the Louisburg cross from over the entrance to the library in Gove Hill. The CTOSS was a highly valued reMc, captured by Massachusetts soldiers at the stege of Louisburg in 1746. Hancock, Mich., Oct. 19-The bodies of Chris Veramer and wife, aged people, were found in the cellar of their house at West Hancock this morning, with their throats cut from ear to ear. It is quite certain that the double murder was committed for the purpose of robbery. as the old couple were commonly believed to have kept large sums of money secreted about the house. There is no clue. New York, Oct. 19.-John DeLahanty was today appointed by Judge Beach of the supreme court, receiver for the Mereury Publishing company. The application was made by Albert L Reynolds, counsel for the judgment creditors for 1999. A number of suite are pending against the Mercury company. The directors have, counsel states, admitted that the company is insolvent and in debt on contract debts to the amount of over III,000. Greenville, 0., Oct. 19.-Representative U. W. Hoeffer, a prominent minister. today acknowledged writing a letter solicittng a bribe of $1,500 for his vote for Minator. Hoeffer has been prominently comnected In the ministry of the Christian eburch for n years, and was & leading member of the last legislature. On seeing a facsimile copy of his letter to the Democratic in the papers today, be confessed, and immediately sent the Republican county committee a letter of withdrawel. St. Louis, Oct. 19-The jury in the trial of Maud Lewis for the murder of State Senator Peter Morrissey, in her house of III repute, last May, returned a verdict this morning of murder in the second degree and assessed her punishment at fifteen years In the penitentiary.
Click image to open full size in new tab
THE GERMAN-AMERICAN BANK. Receiver Appointed-It Refused to Produce Warrants or Cash. Tacoma. Oct. 19.-Special.-Judge Parker today rendered a decision in the sult of the city against the German American Savings bank. The city asked for the appointment of a receiver, on the ground that the bank had refused to honor the treasurer's check. The court held that the bank would have to do one of three things, vis: pay the treasurer's check, tender back the warrants or show the court that the warrants are not in existence. The bank's attorneys making no such showing. Judge Parker appointed 1. R. Balkwill receiver, fixing his bonds at $25,000. The stay bond was fixed at $63.000, which was furnished by the bank during the day. The case will be appealed to the supreme court. The publishers of the New York Banker and Reporter have begun suit against the Columbia National bank for $200, claimed to be due for an advertisement.
Click image to open full size in new tab
DECLINES TO PAY. Tacoma's City Depository Claims Warrants Are of No Value. Tacoma. Wash., Oct. 21.-On petition of the city of Tacoma, Judge Parker. of the Superior Court, appointed S. R. Balkwill receiver of the German-American Bank Saturday. The bank has declined to pay the city $58,000, the amount of its deposits, claiming the warrants were invalid and not enough cash had been deposited with the bank.
Click image to open full size in new tab
Of the German-American Savings Bank, Tacoma. THE CASH AND BOOKS GONE All Money and Valuable Papers Removed to Columbia National. President Allen Adjudged in Contempt of Court for Secreting the Bank of Tacoma's Books - City of Tacoma Sues Nelson Bennett for Money He Borrowed From Boggs. Tacoma, Oct. 22.-Special.-Receiver S. and secured Safe R. Balkwill, Deposit of the Savings German-American Bank, partial possession of his trust this morning. and the bank's doors were closed. The case came up before Judge E. N. Parker at 10 o'clock this morning, the hour set for the hearing of the city's exceptions to the stay bond of $60,000, put up by the bank. At that hour Mr. Balkwill, his attorney, Frederick A. Brown, and Assistant City Attorney Gibbs, were present. None of the bank's bondsmen were in court to justify under oath and the court forthwith declared it void. The attorney for the bank presented a new bond with three additional sureties, but the court peremptorily rejected this bond, and ordered the receiver to take possession of the bank. When the receiver, accompanied by his attorney, the assistant city attorney and Chief of Police Smith, arrived at the bank they were met by Attorney Hammond, of the bank, and Secretary Weisbach. Possession was refused, but the receiver entered the wicket gate near the cashier's desk and formally announced that he was in charge. The officials of the bank thereupon withdrew. taking with them the cash, books and letter books of the bank. These were deposited in the vaults of the Columbia National, which occupies the next room to the savings bank. Receiver Balkwill this afternoon reported to the court that he had secured $1.10 and no more of the bank's assets, and none of the securities or books. He applied for an order to the Columbia National for them to turn over the cash and books. Thus the matter stands. The bank has filed an objection to the order, rejecting the stay bond and that ordering the recelver to take possession. Its attorneys claim that under the statute they should have been allowed not less than three days in which to have their sureties justify. They claim further that only sixtysix hours had elapsed since the city's exception to the bond was filed. The attorneys also set up that under the statute, if the bond is rejected. they have the rigt to file another bond, which must be proceeded against in the same manner as the first. On this ground the bank's attorneys have advised its officers to resist the receiver. This afternoon additional counsel in the firm of Crowley, Sullivan & Grosscup, was retained, and certified copies in the record of the case were obtained from the county clerk. Tomorrow the attorneys will apply to the supreme court for a writ of prohibition, restraining the receiver from interfering with the business of the bank until the appeal is decided.
Click image to open full size in new tab
BANK FAILURES The Tacoma Bank Has $1.10 on Hand-A Kansas Failure TACOMA, Wn., Oct. 2%.When S. R. Balkwill took formal possesson of the closed German-American bank today he found but $1.10 in cash on hand and no account books. The city had over $58,000 on dposit. and it was the demand for this money that caused the bank to fail. WELLINGTON. Kao., Oct. 22. - The First National bank of this city closed its doors at 10 orlock this morning, by order of the directors. The bank had been duing business since 1883, with a capital of $50,000. A gradual shrinkage in its business is responsible for the suspencion. The deposits amount to about $31,000.
Click image to open full size in new tab
A TACOMA BANKER JAILED. President Allen Must Produce in Court the Books of His Defunct Institution. TACOMA, WASH., Oct. 22.-W. B. Allen, president of the defunct Bank of Tacoma, which caused a loss to the city of $228,000, was ordered into confinement in the county jail this afternoon until the bank books which so mysteriously disappeared are forthcoming. Frank Carpenter, the bookkeeper, and E. S. Alexander, the receiver, were released, but are still under bonds. Another case of contempt will be heard in the morning, when the officers of the German-American Bank will be called to testify as to where the books that disappeared from that institution the day before Receiver Balkwell took charge are now. All Balkwell found was $1 10 in a drawer; the books, securities, etc., were all gone. The feeling is very bitter against the bankers and the city and county officials who are said to have aided them.
Click image to open full size in new tab
GERMAN-AMERICAN APPEALS. The Bank Receivership Case Taken to the State Supreme Court. Tacoma. Oct. 23.-The German-American bank today secured from the supreme court an alternative writ of prohibition "Irecting Judge Parker and the Tacoma city officials to appear at Olympia Friday and show cause why the receiver should not be dispossessed of the bank's property. The bank went to the supreme court in order to avoid compliance with Judge Parker's order requiring its officers and the Columbia National bank to forthwith surrender to the receiver the books, cash and other assets of the German-American bank in their possession. Contempt proceedings against the bank officers for non-compliance with the order were instituted today. Papers in the contempt case have not been served yet, as the deputy sheriffs have been unable to get service on the officers. The Columbia National and German-American are both making a determined fight to keep off the receiver. The Columbia National has filed a motion to vacate the order compelling them to give up the books, cash and securities of the savings bank now in their vaults. They set up that they have claim and property interest in the securities, which have been delivered to them in trust and for their security. The case is analogous to the famous Ball case, decided four years ago in the supreme court. In that case Harry Ball was president of the National Bank of the Republic, of Taooma, and the Orting National bank. The latter failed, and its receiver tried to compel Ball to give up securities which he held for debt.
Click image to open full size in new tab
ASSETS VERY SMALL. American Bank Receivership Not Desirable. BANK WINS IN SUPREME COURT. St. Louis Man to Be Receiver of Columbia National-Bennett's Bank Stock Hypothecated. Olympia, Oct. 28.--Special.-The supreme court today filed an opinion in the case of the state, ex rel. German American Safe Deposit and Savings bank, vs. the superior court of Pierce county, directing that an order be issued prohibiting the superior court from further proceedings in execution of its order for the appointment of a receiver until the determination of the appeal therefrom, or until further order of this court, and requiring it to issue the necessay orders to place the appellant in the possession of the property wrongfully taken from It by the receiver. The city of Tacoma had commenced an action in the superior court against the relator, asking to have a receiver appointed for its assets and to wind up Its busimess. The order was granted, and defendant gave notice of appeal and filed a bond for costs. Thereupon exceptions were filed as to the sufficiency of such sureties, and notice given to defendant to produce them in court. Defendant objected to the hearing of the exceptions, on the ground that sufficient notice had not been given to them. The objections were disregarded, and, the defendant taking no further action, the court certified non-appearance and declared the bond void. Defendant then proffered a new bond, but the receiver, acting under an order of court, took possession of the property over the protest of defendant. This proceeding was to obtain an order from the supreme court prohibiting the lower court from further proceedings, and to set aside all that has been done since the filing of the supersedeas bond. The supreme court holds that in filing the new bond the appellant was exercising a statutory right. The superior court assumed to attack the bond on Its own motion, without notice to appellant to produce the sureties or without examining their qualifications. In doing 80 It acted without authority, and deprived the appellant of the fruits of its appeal. It was not the intention of the legislature that an appellant should presume a new bond was to be attacked. When such exceptions were taken notice should be given to produce the sureties in the same manner and for the same time as in the case of the first one. Tacoma, Oct. 28.-Special.-As soon as It was known how the supreme court had decided. Attorney A. R. Heilig, representAng I. M. Howell, a depositor of the bank to the extent of $37.70, filed an application for the appointment of a receiver in Judge Pritchard's court. The complaint stated that the bank owed Mr. Howell $37.70, and had refused to pay the amount: that its liabilities were $70,000 and its assets not more than $25,000. The city attorney was prepared for this move, and before Judge Pritchard had acted on the application filed a motion to transfer the case to Judge Parker's court. In support of his motion Judge Wickersham filed an affidavit signed by Mayor Orr, stating that Judge Pritchard, being a stockholder in the Columbia National bank, was not qualified to sit on the case. Judge Pritchand was not disposed at first to grant the motion, but finally did so. By mutual consent no further action was taken in the matter, and Judge Parker will probably enter an order tomorrow directing the receiver to give up the bank to its officers. Whatever becomes of the case from this time on there will be few applicants for the receivership, if any. Enough has been learned of the bank's affairs to show that there are barely $2,000 worth of assets left, and these. If cashed, would hardly pay the receiver's attorneys' fees and
Click image to open full size in new tab
Brief Tacoma News. Tacoma, April 17.-Special.-Judgment by default has been entered against ex-Treasurer McCauley in a suit brought by Receiver Balkwill, of the German-American Savings bank. The money was charged on the books as overdrafts.