The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-12-22
THE DIRECTORS cor THE MONEY.
Why the Port Angeles Bank Was Not
Permitted to Reopen.

WASHINGTON CIrY, Dec. 2L-tSpecial. -
Comptroller Eckles has finally decided to
stand by his original decision and not per-
NIT the Port Angeles National bank TO re-
open, either under the old management or
the proposed new one. which. to his mind,
seemed but change Of names aud not OF
responsibility or OF real dictatorship. The
history of the failure of this bank and of
its struggles during the past three months
to resume business as obtained from the
comptroller are exceedingly interesting.
The bank failed in June last with liabili-
tie, of about $io4. 200. nearly one-half of
which the bank examiner reported. had
either directly or indirectly been borrowed
from the funds of the bank by the dsrec-
tors themselves or their personal friends.
Furthermore, this indebtedness was
wholly unsecured. There seemed but
one thing to do, asd Charles A. Dyer. Of
Port Townsend. was placed in charge
OF the bank a. receiver. In October the
management of the bank made personal
appeal to NJ. ]. Carrlgan. secretary OF the
Port Angeles Board of Trade, who was at
that time In New York upon . railroad
proposition, to endeavor to raise the sum
of $so000, with which amount In cash 1t
was believed the bank would bs able to
resume business. Mr.. Carrigan succeeded
in obtaining pledge of the money desired
upon securities which the bank was to
furnish. and came on TO Washington City
to see the comptroller. Mr.. Eckeis, who
seems to have the minutest details OF tho
affairs OF every bank at his fingers ends.
informed Mr. Carrigan that he could not
permit the bank 70 reopen so long as the
$50. 600 indebtedness to the bank by the
directors remained unsecured. But If
these men would Immediately secure their
Indebtedness to the bank and Mr.. Carri-
gan and his friends would deposit s3o. 900
to the credit of the bank. he would issue
an order to the receiver permitting the
bank to reopen. For over two months MIR.
Carrigan remained here in Washington
City, ready at . moments notice to turn
over the money which he had obtained In
New YORK, but the directors at Port An
geles failed TO perform their part. This
finally so provoked the comptroller that
he made the plain statement that in bis
opinion the directors Of the bank were not
honest men and that he had permitted
them TO play horse with him long enough.
They at one time teicgraphed that they
had amply secured their Indebtedness. and
az the same time the receiver telegraphed
that the security offered was far from
sufficient.
Later charges were preferred against the
receiver by the directors TO the effect that
he was misrepreseniing the condition OF
things in order to retain "a fat job" and
also that being from Port Townsend, q
rival city. he was doing everything in his
power to iniure Angeles and was prevent
ing the bank from resutning on that ae-
count. Certain plain statements by the
receiver regarding the financial condition
of the men who raade these charges,
coupled with their failure TO even offer
security OF any sort for their indebted
ness 10 the bank until compelled 10 do so
By the comptroller. one OF the things
which must be done before n proposition
for reopening could be entertained, moro
than Offset these charges. Then Bank Ex-
aminer Cleary vas sent there TO make q
@pecial report of the condition OF things.
Just what that report vas Comptroller
Eekels would not say. bat 10 was not until
after il had been received that he gave his
final decision against permitting The bank
10 resume either under the old manage
ment or under the new one. which had
have been sonexhst OF "a surprise to the
bank officials, for latest kilograms re-
eeived here by them were full of conf
dence snd hope. To Mr. CarFigan. who
had been waiting so patiently here in
Washington City. i. was q great dlsap-
uointmsa;. lie telegrapbed TO New York
q release of the money which had been
awaiting his order for two months and
left at once for Port Angeles.
Arguments Begun In Smuggling Case.
PoKrLASp. Dec. 81 - Special. Seid
Blacx sas the principal witness Ia the con-
sriiraey case today. lie, like the other de-
PENDANTS. made a general denial OF BUNS
accusations The charge that be had
signed certificates for Blum. be said. was
false, as be could not write Chinese. Ching
Chang Qaie. . -four shipper. said he had
never had any unlawful dealings with the
Blum crowd. When the government
rested Judge Bsllinger said AS 70 de-
lendans Clean o Holman. ii the jury