Southwestern Washington Bank (Ilwaco, WA)

Episode Information

Episode UID
98034271485
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
9803427 routing
Routing Number
98-0342
Start Date
September 1, 1923*
Location
Ilwaco, Washington (46.309, -124.043)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
79d575f46523d31c

Response Measures

None

Description

Articles describe embezzlement and liquidation; a reported earlier 'run' is anecdotal and not shown as causing the failure.

Events (2)
1. September 1, 1923* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed following discovery of large embezzlement/defalcation by cashier and shortages in ledgers; bank was liquidated.
Newspaper Excerpt
Most of the growers had all their funds in the bank and could not finance their crops when it closed its doors.
Source
newspapers
2. September 6, 1923 Receivership
Newspaper Excerpt
Sensational disclosures in connection with the failure of the Southwestern Washington Bank of Ilwaco ... Myron E. Sinclair ... confessed to embezzling $49,900 ... The affairs of the bank are in the hands of Examiners Knapp and Vanderpoel ... The loss to depositors will be very heavy, it is said.
Source
newspapers

Newspaper Articles (10)
1. September 6, 1923 The Oregon Daily Journal Portland, OR
Article from The Oregon Daily Journal, September 6, 1923

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Article Text

HEAD OF ILWACO'S BANK ALSO TO BE ARRESTED Olympia, Wash., Sept. 6.—Sensational disclosures in connection with the failure of the Southwestern Washington Bank of Ilwaco and the Miners & Smelters bank at Northport, Stevens county, were made Wednesday by Supervisor of Banking Duke, involving defalcation of the officers in both cases. Myron E. Sinclair, vice president and cashier of the Ilwaco bank, surrendered to the sheriff of Pacific county Wednesday and was taken before the superior court at South Bend, where he pleaded guilty, and received from Judge Hewen a sentence of from four to 15 years in the penitentiary at Walla Walla. He confessed to embezzling $49,900, but the examination Supervisor Duke said, probably would show that more than $100,000 has been misappropriated. Young Sinclair said his peculations covered a period of 10 years. State Senator Percy L. Sinclair, who is president, will be arrested, charged with complicity in the shortage, unless he gives himself up, said Duke. The affairs of the bank are in the hands of Examiners Knapp and Vanderpoel, and a thorough checking will disclose the full extent of the shortage. The Sinclairs, father and son, were called in and turned over all their property to the bank supervisor, including their automobiles and stock in a manufacturing concern. The loss to depositors will be very heavy, it is said. The Miners & Smelters bank examination by Examiner Stevens disclosed a shortage of $2000, and a warrant has been issued for the arrest of the president, C. I. Prouty. Supervisor Duke says the bank will pay out practically dollar for dollar to the depositors.

2. September 18, 1923 Seattle Union Record Seattle, WA
Article from Seattle Union Record, September 18, 1923

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Article Text

Bank Crash Delays Cranberry Growers ILWACO, Sept. 18.—In spite of the fact that the cranberry crop here is one of the largest in the history of the Northwest, picking did not start here until more than a week later than usual, due to the failure of the Southwestern Washington bank. Most of the growers had all their funds in the bank and could not finance their crops when it closed its doors. The Pacific Cranberry Exchange, however, finally made arrangements to get the necessary money for them, and picking is now well under way.

3. September 18, 1923 Seattle Union Record Seattle, WA
Article from Seattle Union Record, September 18, 1923

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Article Text

Bank Crash Delays Cranberry Growers ILWACO, Sept. 18.—In spite of the fact that the cranberry crop here is one of the largest in the history of the Northwest, picking did not start here until more than a week later than usual, due to the failure of the Southwestern Washington bank. Most of the growers had all their funds in the bank and could not finance their crops when it closed its doors. The Pacific Cranberry Exchange, however, finally made arrangements to get the necessary money for them, and picking is now well under way.

4. September 19, 1923 Seattle Union Record Seattle, WA
Article from Seattle Union Record, September 19, 1923

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Article Text

Bank Crash Delays Cranberry Growers ILWACO, Sept. 18.—In spite of the fact that the cranberry crop here is one of the largest in the history of the Northwest, picking did not start here until more than a week later than usual, due to the failure of the Southwestern Washington bank. Most of the growers had all their funds in the bank and could not finance their crops when it closed its doors. The Pacific Cranberry Exchange, however, finally made arrangements to get the necessary money for them, and picking is now well under way.

5. January 11, 1924 The Capital Journal Salem, OR
Article from The Capital Journal, January 11, 1924

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Article Text

SINCLAIR SAYS DID NOT KNOW OF DEFALCATION Chehalis, Wash., Jan. 11.—State Senator Percy L. Sinclair, on trial in the Lewis county superior court on a charge of rendering a false statement as to the condition of the defunct Southwestern Washington bank at Ilwaco of which he was president, today took the stand to testify in his own behalf. He admitted signing the alleged false statement June 30, 1923, but said: "I did not read it over and did not know it was false. I did not know my own account was overdrawn as my boy, Myron, looked after my account, nor did I know that anything was wrong with the bank accounts." Norman J. Howerton, an employe of the Ilwaco bank from 1921 until the bank was closed, also testified for the defense. He said that he did general work in the bank and on the ledger and that he knew of the conditions of the bank as far as was revealed by the books. He declared that he examined the ledger June 30, 1923, when the false statement charge was made to the state department but that only part of the figures were his as Myron Sinclair handled some of the books. Under cross-examination, Howerton testified that Myron's account was overdrawn $1000 and had been overdrawn some time, although the bank statement showed only a $700 deficit. He said he did not know that Senator Sinclair's account was overdrawn.

6. January 12, 1924 East Oregonian Pendleton, OR
Article from East Oregonian, January 12, 1924

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Article Text

STATE RESTS CASE IN SINCLAIR TRIAL; JURY IS INSTRUCTED CHEHALIS, Wash., Jan. 12.—To the surprise of a crowd that has filled the Lewis county superior court room here since a trial of State Senator Percy L. Sinclair, on a charge of falsifying the condition of the Southwestern Washington bank at Ilwaco, Wash., opened Monday, the defense rested today. The jury was instructed by Judge W. A. Reynolds. Before Judge Reynolds began his instructions the prosecution called three witnesses in rebuttal. One of these, Archie Constable of Seaview, near Ilwaco, related an alleged conversation with Senator Sinclair president in the bank in 1922. Mr. Constable told the jury that soon after Senator Sinclair returned home from the last session of the legislature the Seaview man asked for information about a reported run on the bank. The witness declared that the senator replied, "that doesn't worry me, a bit. I know the condition of that bank. It is backed by people who could buy the whole peninsula and never miss the price."

7. January 12, 1924 The Bellingham Herald Bellingham, WA
Article from The Bellingham Herald, January 12, 1924

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Article Text

Reported Run On Bank "Did Not Bother" Sinclair. CHEHALIS, Wash., Jan. 12.—(AP)—To the surprise of a crowd that has filled the Lewis county courtroom here since a trial of State Senator Percy L. Sinclair on a charge of falsifying the condition of the Southwestern Washington bank at Ilwaco, Wash., opened Monday, the defense rested today. The jury was instructed by Judge W. A. Reynolds. Before Judge Reynolds began his instructions the prosecution called three witnesses in rebuttal. One of these, Archie Constable of Seaview, near Ilwaco, which is on a peninsula between Willapa harbor and the Columbia river, related an alleged conversation with Senator Sinclair, president of the bank, in February, 1922. Mr. Constable told the jury that soon after Senator Sinclair returned home from the last session of the legislature, the Seaview man asked for information about a reported run on the bank. The witness declared that the senator replied: "That doesn't worry me a bit. I know the condition of that bank. It is backed by people who could buy the whole peninsula and never miss the price." Defense Brief. The defense, which yesterday put Senator Sinclair and his son, Myron Sinclair, cashier of the bank, who is serving four to fourteen years in the penitentiary for misdoings in the institution, on the stand, used barely over one day in presenting testimony while the state took five. John A. Vanderpool, a state bank examiner, one of the rebuttal witnesses, declared that June 30, 1922, when Senator Sinclair was accused of making a false financial statement to the state bank supervisor, "it would not have taken an audit of the books to have found the discrepancy." T. H. Adams, a state bank examiner who has been liquidating the Ilwaco institution, was prevented by on objection from answering questions concerning papers that were not in the record.

8. January 12, 1924 The Columbian Vancouver, WA
Article from The Columbian, January 12, 1924

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Article Text

Instructions Given Jury in Sinclair Trial CHEHALIS, Jan. 12.—(A. P.)—To the surprise of the crowd that has filled the Lewis county superior court room here since the trial of State Senator Percy L. Sinclair, on a charge of falsifying the condition of the Southwestern Washington bank, at Ilwaco, Wash., opened Monday, the defense rested today. The jury was instructed by Judge W. A. Reynolds. Before Judge Reynolds began his instructions, the prosecution called three witnesses in rebuttal. One of these, Archie Constable, of Seaview, near Ilwaco, related an alleged conversation of Senator Sinclair in February, 1922. Constable told the jury that soon after Senator Sinclair returned home from the last session of the legislature, he asked for information about a reported run on the bank. The witness declared:

9. January 12, 1924 The Columbian Vancouver, WA
Article from The Columbian, January 12, 1924

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Article Text

CHEHALIS, Jan. 12.—(A. P.)—To the surprise of the crowd that has filled the Lewis county superior courtroom here since the trial of State Senator Percy L. Sinclair, on a charge of falsifying the condition of the Southwestern Washington bank, at Ilwaco, Wash., opened Monday, the defense rested today. The jury was instructed by Judge W. A. Reynolds. Before Judge Reynolds began his instructions, the prosecution called three witnesses in rebuttal. One of these, Archie Constable, of Seaview, near Ilwaco, related an alleged conversation of Senator Sinclair in February, 1922. Constable told the jury that soon after Senator Sinclair returned home from the last session of the legislature, he asked for information about a reported run on the bank. The witness declared: "That doesn't worry me a bit. I know the condition of that bank. It is backed by people who could buy the whole peninsula and never miss the price." The defense used barely over one day in presenting testimony, while the state took five. John A. Vanderpool, a state bank examiner, one of the rebuttal's witnesses, declared that June 30, 1922, when Senator Sinclair was accused of making a false financial statement to the state bank superviser: "It would not have taken an audit of the books to have found a discrepancy."

10. January 12, 1924 The News-Review Roseburg, OR
Article from The News-Review, January 12, 1924

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Article Text

SINCLAIR CASE GOES TO JURY Defense Rests Case This Morning Much to Surprise of Large Crowds. JURY IS INSTRUCTED Defense Used Barely a Day in Presenting Case While the Prosecution Consumed Five. (Associated Press Leased Wire.) CHEHALIS, Jan. 12.—To the surprise of a crowd that has filled the Lewis county superior court room here since a trial of State Senator Percy L. Sinclair on a charge of falsifying the condition of the Southwestern Washington bank at Ilwaco, Washington, opened Monday, the defense rested today. The jury was instructed by Judge W. A. Reynolds. Before Judge Reynolds began his instructions the prosecution called three witnesses in rebuttal. One of these, Archie Constable of Seaview, near Ilwaco, related an alleged conversation with Senator Sinclair, president of the bank, in February, 1922. Mr. Constable told the jury that soon after Senator Sinclair returned home from the last session of the legislature, the Seaview man asked for information about a reported run on the bank. The witness declared that the senator replied: "That does not worry me a bit. I know the condition of that bank. It is backed by people who could buy the whole peninsula and never miss the price." The defense, which yesterday put Senator Sinclair and his son, Myron Sinclair, cashier of the bank, who is serving four to fourteen years in the penitentiary for misdoing in the institution, on the stand, used barely over one day in presenting testimony, while the state took five. John A. Vanderpool, a state bank examiner, one of the rebuttal witnesses, declared that June 30, 1922, when Senator Sinclair was accused of making a false financial statement to the bank supervisor, "it would not have taken an audit of the books to have found the discrepancy." T. H. Adams, a state bank examiner, who has been liquidating the Ilwaco institution, was prevented by an objection from answering questions concerning papers that were not in the record. During the delivery of the instructions and the following arguments to the jury, Senator Sinclair shifted often in his chair. Frequently he put up his hands and adjusted his collar about his neck. C. H. Forney of this city, associated with Prosecuting Attorney John I. O'Phelan of Pacific county, for the state, told the jury that when the prisoner held the presidency of the bank, "he was under the burden of a sacred trust." "Senator Sinclair asks you to believe that there was a thief in his family," exclaimed the lawyer, "and yet he wants you to believe that for six years he never found it out. He told you on the stand that he wished he could take his son's place in prison. Yet he had three days before Myron Sinclair was arrested to assume the blame, and he did not do it." Mr. Forney asserted that an overdraft of $8,000 laid to Senator Sinclair was virtually a loan from the bank in violation of law.