Boise State Bank (Boise, ID)

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THE BOISE STATE BANK SHUTS DOORS [UNITED PRESS LEASED WIRE.] Boise, Ida., Dec. 19.-The Bolse State Bank was closed today by the state bank examiner. The bank is a small institution, the deposits being less than $150,00. The capital stock is $50,0000. No statement of liabilities has yet been made. Edward Payne is president and chief stock holder. President Payne declares .depositors will be paid in full. The failure caused no runs on the other banks.

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BOISE STATE BANK CLOSES ITS DOORS Financial Circles Shocked by Failure of Institution to Continue Business. CLOSED BY OFFICIALS Clearing House Could Not Come to Aid of Distressed Bank in Time. Special to The Tribune. BOISE, Ida., Dec. 19.-The failure of the Boise State bank here today, which proved a shock to financial circles and caused a sensation, started a miniature stampede among frightened depositors of other banking institutions, which was quickly checked by the announcement of the clearing house that all other state and national banks here have from 35 to 60 per cent of their deposits on hand in actual cash and could pay out within twenty-four hours The Bolse State bank was closed by order of State Bank Commissioner V. W. Platt. It is capitalized for $50,000. which is known to be a total loss by the failure, and at the time of its suspension had about $29,000 in cash or collateral representing cash on hand. and its cash liabilities amounted to $187,000. Between 300 and 400 Individual depositors are financially handicapped by the failure coming at this time of the year. when money was in demand for Christmas. All day long a crowd of anxious depositors hung around the bank's entrance endeavoring to secure Information. Commissioner Platt authorized the statement today that the bank's condition was presented to the clearing house last night in the hope that the combined strength of all the banks might be thrown to its assistance. The clearing house estimated that it could stand for a shrinkage of 30 per cent on the loans and discounts, but not more, which it was believed would have to be discounted in the Boise State bank's paper. Failure on the part of the clearing house to relieve the situation and the fact that the reserve of the Boise State bank had fallen below 15 per cent as required by law forced the commissioner to close the institution. It is now believed depositors may be paid In full. The bank carries $170,000 in loans and discounts, and It is estimated that with a depreciation of 50 per cent in these there will still be sufficient to pay depositors. Edward Payne is president of the defunct institution. Its individual deposits on December 5. when the last statement was given. amounted to $99,275.60.

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BANK FAILS (By United Press Leased Wire.) BOISE, Ida., Dec. 20.-The Boise State bank was closed today by the state bank examiner. The bank is a small institution, the deposits being less than $150,000. The capital stock is $50,000.. No statement of liabilities has yet been made. Edward Payne. is president and chief stockholder. President Payne declares depositors will be paid in full. The failure caused no runs on other banks.

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NEWS AROUND THE STATE s S i Items From Various Places 3Reproduced for the Benefit s of our Readers--Stories Res hashed from Exchanges. e A deer was shot Monday in e the town limits at Kamiah. It was the fifth of its kind seen there within the past two weeks. John S. Roberts, formerly of Lewiston, was arrested late last week at Culdesac on a charge of introducing liquor on the reservation. J. Smith, until recently a salesman for the Lewiston Furniture company, was arrested at that place Saturday on a charge of embezzling $40 of the firm's money. J. B. West, Eugene Gasser and Gus Thiessen returned to Lewiston Tuesday from a hunting trip in the upper Clearwater country and had six deer to show for their efforts. The Boise State Bank, a small institution, closed its doors Monday and is in the hands of the state bank examiner. Its failure was due to loaning too much money on bad secuaity. August Hartman, an I. W. W. adherent, was arrested at Lewiston Saturday for assaulting the chief of the fire department. Hartman was in jail when the assault occurred and was taken to the county jail later. The C. A. Hardin crop of about were at 3,000 purchased sacks of Lewiston club wheat Saturday comcents a pany by the for Vollmer-Clearwater 67 bushel, which was from one to two cents a bushel better than the regular market quotations for that grade of wheat at that point. The Genesee high school basket ball team defeated the Spokane high school team at Genesee on Monday evening by a score of te 24 to 20 in a very fast game. a The Spokane team admitted it had lost to a better team and the victory makes the Genesee team champions of the Palouse country. fu At a meeting of the farmers b of SaturL were day the resolutions Ilo-Vollmer section passed railroad asking the Camas Prairie to B change the name of the station y at Vollmer to "Finch" and pledged themselves to support the new town for the permanent county seat of Lewis county. If the railroad company grants the request the Ilo-Vollmer town fight will probably be wiped out for good. da Roy Thompson, a 17-year old B boy residing at Kamiah, had one h leg badly broken at Winona Sunno day by having his horse fall on w him. The boy was running a th horse race with another boy and ill his unshod pony slipped on the as frozen ground and slid for quite de la distance, catching the rider an with the above result. Young Thompson was taken to his home wi at Kamiah for repairs, arriving he there about midnight. de Wa U.S.G. Evans, charged with ch falsifying the records of the an Farmers Bank & Trust Co. of Kendrick while serving the compal pany in the capacity of secretaryaf treasurer, was acquitted by a Re jury in the district court at Moschi cow Saturday on the first ballot. In As there are twelve other counts tes against Evans and he is to be tried on all of them the th above decision is by no-means a be conclusive one. Evans was bonded for $10,000. which sum was

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boise State Bank Closes Its Doors. Boise, Dec. 19-The Boise State bank closed its doors and suspended business on the notice of State Bank Commissioner V. W. Platt today. Financial difficulties which have been pending for a month and which pressed the institution hard are said to have been the cause of the faiture. From the best information obtainable the affairs of the bank are in such condition that the depositors do not stand to lose their funds, but will probably be paid within thirty days. The Boise Clearing House held a meeting into the late hours of last night in an attempt to save the institution, but failed, due as no medium could be provided to prevent the closing of the bank's doors. Commissioner Platt is in complete charge of the institution and following a careful inspection of the bank's books will give out a statement of the actual conditions.

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IDAHO BANK CLOSES DOORS Miniature Stampede of Depositors at Boise Started by Failure of the Boise State Bank. Boise, Idaho.-The failure of the Boise State bank on Tuesday, which proved a shock to financial circles and caused a sensation, started a minia ture stampede among frightened depositors of other banking institutions, which was quickly checked by the announcement of the clearing house that all other state and national banks here have from 35 to 60 per cent of their deposits on hand in actual cash and could pay out within twenty-four hours. The Boise State bank was closed by order of State Bank Commissioner V. W. Platt. It is capitalized for $50, 000, which is known to be a total loss by the failure, and at the time of its suspension had about $29,000 in cash or collateral representing cash on hand, and its cash liabilities amount. ed to $187,000. Between 300 and 400 individual depositors are financially handicapped by the failure coming at this time of the year, when money was in demand for Christmas. All day long a crowd of anxious depositors hung around the bank's entrance en deavoring to secure information.

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DEPOSITORS OF BOISE STATE BANK TO MEET The depositors of the Bolse State bank will have a meeting next Monday night in the bank room to go over the affairs of the institution, investigate the conditions that have arisen, and to discuss matters that will be of general interest to all of the bank's creditors. Every depositor and stockholder is interested in the outcome of the cases now pending in the district court against the officers of the institution. The present financial standing of the bank and the prospects of paying the depositors back the money that was placed in trust there will be some of the matters that are to be discussed. The affairs of the institution probably cannot be definitely settled until after the cases now pending in court have been determined. V. W. Platt, as receiver of the bank, has brought several actions against persons indebted to the bank, while the grand jury has returned indictments against the officers of the bank.

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than any other method that could be suggested. The standing committee consisting of Moses Alexander, John E. Yates, A. W. Wicher, A. B. Crooks and C. K. Clark, was instructed to determine whether or not the receiver could be dismissed and another appointed and to make preparations for the discovery of the value of the bank's paper. The committee will. also lay plans for the alteration of the state law at the next session of the legislature so as to require the state bank examiner to furnish information to the depositors that has been denied to those of the Boise State, as they claim. Clarence Van Deusen, who said he represented two depositors, declared that the bank held two notes from O. v. Allen, state treasurer, totaling $12,500, at least one of which bears the signature of Governor James H. Hawley, and charged that this was the reason secrecy was being maintained. Mr. Allen made an emphatic denial of this statement today.

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DEPOSITORS OF THE BOISE STATE BANK INDIGNANT Will Ask Court to Remove State Bank Examiner as Receiver and Appoint Another in Place. (Capital News) Demands of the immediate dismissal of V. W. Platt, the state bank examiner, as receiver of the Boice State bank and the appointment of M. ] Meholin, vice president of the Pacific National bank, in his place, was made by practically all present at a meet ing of the depositors of the defunct bank held last night in the Yates build ing. Charges of "rotten politics in the administration of the business affairs of the bank" were made by several of the depositors and demands for the appointment of some one who is "not engulfed in the waters of politics but who knows how to run a bank" were repeated through the excited session of the depositors. "If they knew anything about business they would not be in politics," declared several of the leaders of the meeting. "We have been robbed of our money and we want somebody in charge of the bank's affairs who will handle its business in a business way. We want those notes collected. We want to know what good paper there is in this bank and what paper we have here that cannot be collected We want ta know everything and anything about the administration of the bank's affairs that will show us when the depositors can expect to get some of their money back from the institution. We want somebody in charge who will not discriminate but will collect. Any politician will press some men for collection and will let others go. We want the money on every not that is outstanding, for this bank does not hold any paper that carrios more than a 12-month period before collection."

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MUST COLLECT TAXES FROM BANK ITSELF The county must collect dellnquent taxes from the stockholders of the Boise State bank rather than from the bank itself. This decision was handed down by Judge Carl A. Davis in the suit of Herbert A. Ellsworth, county assessor, against V. W. Platt, receiver. The court allowed the taxes of the county against the real estate of the bank but refused the collection on the capital stock of the institution. The bank claimed that it was insolvent and that there had been during the year 1911 no undivided profits or surplus in its treasury from which to pay the taxes. It contended that the county should sue the individual members of the corporation for the taxes due upon the stock itself. Taxes on the real estate amounting to $95.99 were allowed and those upon the stock amounting to $1188.25 refused by the court.

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WILL EXAMINE RECORDS

Court Appoints New Receiver for Defunct Bolse Bank. Special to The Tribune. BOISE, Feb. 8.-The removal of State Bank Commissioner V. W. Platt as receiver of the defunct Boise State bank was the important development today in the trial of Edward and Eugene Payne, president and cashier, respectively, of the bank, charged with falsifying the records. Judge Carl A. Davis today 19sued- the order that made Ben Q. Pettingill receiver of the bank after 9 o'clock Monday morning, and relieved the present receiver of his duties in handling the property of the defunct institution. While the law prevents the bank commissioner from making a. report of the conditions of any institution in the state, a district judge may require the receiver of the institution to report each and every asset and debt that the bank has. Judge Davis has made the order and the full report, showing every good and every bad note in the place, will hereafter be part of the records of the district court in this county.

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STATE AND COUNTY NEWS Items of Interest Gathered From Exchanges. OF INTEREST TO IDAHOANS. Events and Industrial Progress Of the Week. The steel bridge across the St. Maries river near St. Maries IS nearly completed. It cost $18,000, half of which sum was appropriated by the county and the rest by the state legisture of 1911. The omnibus public building bill reported to the lower house of congress last Saturday carries $85,000 for erecting a public building at Twin Falls and $70,000 for a building and site at Sandpoint. House robbers at St. Maries last Saturday ransacked one house where the family was away, but were frightened off when attempting to enter a second house, leaving behind the plunder they had taken from the first. The University of Idaho is to take an important part in stamping out the hog cholera 10 the southern part of the state. The manufacture of hog serum is to be at undertaken bacteriology once by the veterinary, and animal husbandry departments. A fusilade of bullets fired by police in in chase an Spokane of alleged highwayman, last Sunday morning, caused the death of Gustav Froistad of Laclede, Idaho. Though two was in head a died blocks the away, by Froistad stray bullet struck and in the hospital a few hours later. Because of the enthusiasm of the specially trained teachers of Ada county, the rural schools are going to the schools a run their in give position city vocational close training. for no with but With nothing almost enthusiasm equipment, for their work and a like enthusiasm for study in their pupils. the rural schools are said to be learning cooking, sewing, manual training and agriculture. The Boise State bank, it is said, will not over 25 cent pay per to the when its affairs are wound settled. depositors up and State Banking Commissioner Platt turned over to Re. ceiver Pettingill $22,500. The deposits of the bank at the time it was closed amounted to about $140,000. It is not thought that the notes held by bank will the bring much to the depositors, and it is not thought that more than 25 per cent of this amount can be collected. Accused of being overzealous in his enforcement of the law, M. S. Parker has been asked to resign as a deputy under State Pure Food Inspector James H, Wallis. It is claimed Mr. Parker prosecuted too many cases violation of law was one wherein merely technical, the instance being was sellthat was where ing machinery a merchant fined not for labeled with his name and address as required by law. Miss Jessie Hoover, professor of home economics in the state univeris enthusiastic the women's the sity, proposed building concerning at Moscow school. She is delivering a series of lectures to the women of Boise and vicinity upon home economics and sbowing how the high cost of living bugbear may be successfully killed off if the housewife would only use reason when making her purchases from the butcher, the baker and the candlestick maker. If the legislature should see fit to grant an appropria tion for the building she has several ideas in mind toward developing the best cooks in the world in Idaho.

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GET ONLY 10 PER CENT

Little Money Left After Failure of Bolse State Bank. Special to The Tribune. BOISE, March 6.-The several thousand depositors of the Boise State bank, which failed two years ago, will receive but 10 cents on the dollar, owing to the unfortunate condition in which the assets of the bank were when It went to the wall. Its president, Edward Payne, is now serving an indeterminate sentence at the Idaho state penitentiary, having been found guilty of fraud by the district court. Ben Pettengill, receiver of the bank, filed his report today with the district court. In it he shows that the depositors can only be paid 10 cents on the dollar. The total liabilities of the bank, the report states, amount to $149,018.66.

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BANKER IS PARDONED

Minimum of Sentence Imposed Brings Release to Edward Payne. Special to The Tribune. BOISE, Idaho, Aug. 11.-Edward Payne, convicted president of the Boise State bank, sentenced to serve from six months to two years in the Idaho state penitentiary, is a free man today, although he has been in St. Alphonsus hospital for the past week, having been taken there for an operation. His minimum sentence of six months has expired and a commutation of the state board of pardons, which is virtually a full pardon, goes into effect. During the time that Payne served in the penitentiary he was a model prisoner. The incarceration of Payne was the result of indictment by a grand jury in Ada county and later his conviction in the district court on the charge contained in the true bills of falsifying reports of the bank's condition to the state bank examiner. The indictment and subsequent conviction of Payne were the outgrowth of the failure of the Boise State bank two years ago. V. W. Platt, then state bank examiner, closed the institution and was later appointed its receiver. Indicted with Payne were his son, Eugene Payne, and the latter's wife, both employees in the bank. Following the conviction of President Payne, the Indictments against Eugene Payne and wife were dismissed.

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and cake on the evening of June 17 on the lawn at Mrs. Lipman's home, 1510 North Thirteenth street. The case of Bea D. Lingenfelter against the Owyhee Land & Irrigation company and others is still on trial before Judge McCarthy and jury with prospect that it will be concluded tonight. G. W. Boynton and D. Mackenzie of Boston, E. D. Smith of Pittfield, Mass., and G. H. More of Bangor, Me., arrived here yesterday and have gone to the Pearl mining district, where they have interests. Marriage licenses were issued today to Arthur Bruce Bloom, of Pierce Park, and Fannie Loyce Adams, of Kingsbury, and to Clifford Gillette Babcock and Elva May Sherrod, both of Glenns Ferry. The Shaw Lumber company and others have filed suit against Alexander T. Ellis and others for work and material furnished on a concrete buildIng, the balance claimed to be due on various counts amounting to $3182.73. Ben Q. Pettengill, as recèiver for the Boise State bank, has filed suit against L. A. Coate asking for foreclosure on stock of the Shafer Creek Lumber company, alleged to have been given as security for a note for $8265 given October 25, 1911. Ray L. Boone and J. R. Sargent, who spent several days here making investigation of the Boise stone quarry and generally looking over Boise with a view to making investments, left yesterday on their return trip to Topeka. Both men were well pleased with the outlook for this section and intimated that they might return. Hannah Baker has filed suit for divorce from William H. Baker. The complaint states that they were married in Boise in 1898 and charges that he has failed to provide for her and their child but has spent his money on other women and has asked her to get a divorce. It claims that he earns monthly wages of from $100 to $125 and has due him $250 from Slick Brothers, whom the ceurt is asked to enjoin from paying the money until this suit is determined.

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BREVITIES

The Boise Council of Women Voters will meet in regular session at 8 o'clock tonight at the city hall.

In the case of M. F. Dean against the Wyoming Holding company, Dean Perkins has been appointed temporary receiver for the defendant company.

The Boise Realty company has moved its offices from South Tenth street to the rooms formerly occupied by the Payette Lumber company in the Sonna building.

Joe, Jim and Tim McCarty each pleaded guilty in the justice court of Judge Adams to battery upon the person of Joe Fisher and each was fined $4 for the offense, which they paid.

Division No. 2 of the First Methodist church will give an ice cream social at the home of Mrs. A. P. Wilson, at Fifteenth and Washington streets on Tuesday evening. The public is invited.

E. A. Rieger, of the Capital Liquor company, received a wire this morning stating that his brother, Fred J. Rieger, and wife, who has been touring Europe, are at Frankfort-on-the-Main.

Bad blood exists between the Austrians and Servians in Boise and it is only the strict watch kept over them by the police which keeps them from mixing. A fight started among them early this morning, but they were immediately dispersed by an officer.

A son was born Sunday night to Lieutenant and Mrs. V. R. Bell, at the home of Mr. and Mrs. A. E. Carlson, 611 Jefferson street. Lieutenant Bell is with his regiment on the Mexican border, but the news of the safe arrival of the heir was flashed to him across the country last night.

The case of the state against the Title Guaranty & Surety company upon the official bond of former Bank Commissioner Platt in the matter of the failure of the Boise State bank, was again taken up this morning before Judge McCarthy in the district court, where it is being tried before a jury.

Mrs. H. L. Whitehead this morning received a message announcing the death of her mother during the night at Baker City. The cause of death was heart failure. Death came suddenly and wholly unexpected and the news came as a great shock. Mrs. Whitehead and daughter will leave on the evening train for Baker City.

With his leg broken in two places below the knee, Judson Smith, a trainer and driver at the fair grounds, was taken to St. Alphonsus hospital yesterday morning and will be a patient there for some time. Mr. Smith attempted to kick a heavy belt off a pulley while it was running at a high speed and his foot caught, throwing him and breaking the limb in two places.

Health Officer Parker says no doubt a man by the name of Jose Villa, who died at Arrowrock last Friday and was buried here yesterday, was a relative of General Villa of Mexico. The officer stated that when the deceased went to Arrowrock he requested that if anything should happen to him the general be notified. A message was sent to General Villa from Boise but at last report no answer to it had been received.

In the case of the state against May Bradbury, convicted several weeks ago by a jury of running a disorderly house, the fine, then imposed was today altered making the fine $100, together with $6 costs in the probate court, where she was first convicted, and $88.50 in the district court, making a total of $194.50. An order was also issued that in case of failure to pay the fine that she be committed to the county jail one day for each $2 of the fine and costs.

Because he collected $15 from two foreigners upon a promise to get them a job for $2 a day and board, Del J. Harris, a laborer, is serving five days in the county jail and must pay a fine of $45, three times the amount received, as provided by law, or else remain in jail until the fine is laid out.

Harris fell in with two foreign boys Saturday night and all had a few drinks together, then, according to the boys, he offered to get them a job for $15 and they paid him the money and on Sunday morning he borrowed $5, which they made him give back a little later. Harris declared that he only got $2 from the job, that they spent $5 for booze and about $3 for a room. Following his arrest yesterday afternoon he admitted that he owed the boys $15 and was taken by an officer to several places where he tried to borrow money to pay them back.

Two arrests within 24 hours are credited to Robert Miller, who is in the city jail being sobered up sufficiently to appear before Judge Dunlap on the charge of being drunk and abusive. Miller was arrested Saturday evening, released on a $5 cash bond and yesterday again fell into the hands of the law on a similar charge. He resisted arrest the second time and he felt he was being taken in custody a second time on the same charge. Pat Hays, for being drunk, abusive and resisting an officer was fined $20 this morning and committed. M. J. Ford and Aimo Lilza were each fined $5 for being drunk and were committed. N. R. Hubert, for being drunk, forfeited a $5 cash bond. A complaint of cruelty to animals has also been sworn to by Chief Robinson against Hubert.

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DEPOSITORS WIN O

W. Allen, whose name headed an alphabetically arranged list, and 218 other depositors of the defunct Boise State bank, whose funds were deposited between the date the bank was examined by the state examiner, October 25-27, 1911, and the date the institution was closel, December 19, 1911, will recover $30,240.98 on the bond of V. W. Platt, former state bank examiner, as the result of an opinion handed down Saturday by the supreme court. The court affirmed a decision by Judge McCarthy of the Third Judicial district, Ada county. The suit was brought by the state against Platt and the Title Guaranty & Surety company of Scranton, Pa., on behalf of all depositors who had placed money in the bank subsequent to Platt's last examination. A judgment was obtained in the district court, and the bonding company appealed. Diversity of citizenship was one of the assignments of error advanced. The supreme court held that, as none of the depositors for whom the suit was brought had a balance of more than three thousand dollars, the case was not one that should go to the United States court. The court also ruled on the question of interest the depositors were entitled to receive, and held that in the absence of a stipulation in the bond to the contrary, interest should begin to accumulate against the bonding company at the same time as against the principal obligator. Interest was therefore allowed to run from the date the bank's doors were closed. The judgment of the trial court was affirmed in every particalar. The opinion was written by Justice Morgan. His decision aws concurred in by Justice Budge.

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ACTION AGAINST FORMER BANK.

Following a decision of the supreme court last week William H. Blackman has filed action in the district court to recover on a mortgage given by the former Boise State bank to the amount of $14,144. This mortgage as given by the bank to secure Blackman prior to its bankruptcy, but was set aside by Ben Pettingill, receiver of the bank. The supreme court upheld Blackman in his action for foreclosure and suit is begun again in district court.

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DISTRICT COURT AFFAIRS

In the matter of the winding up of the affairs of the Boise State bank, the receiver's motion to set aside the order granting William H. Blackman the right to sue the receiver was denied. The demurrer to the second amended complaint in Emmett A. Evans, administrator. versus the Boise Valley Traction company, et al, was overruled. Defendants were given 10 days in which to strike. The motion to strike and elect was overruled. In Boise Title & Trust company versus Northwestern Investment company, defendant's demurrer to the complaint in intervention was sustained.

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DEFUNCT BANK RECEIVER MUST REPORT TO COURT

Ben Q. Pettingill, receiver for the defunct Boise State bank, which failed in 1912, must appear in district court January 26, 1924, make his final report, turn over all moneys he holds as receiver, and show cause why he should not be discharged as receiver, Judge Raymond L. Givens ruled Thursday. The affairs of the bank have been completely liquidated, it is said, and discharge of the receiver will close out the last of its business.