The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-05-06
FOR THE BANK EXAMINER.
Why Certain Notes Wore Secured 70
the AnaCOrtes National Bank.

Why Certain Notes We're Secured for
the AnacOrtes National Bank.
Suit was begun In the superior court yesterday
b the Fidaigo Land Company and the Fidslgo
Improvement Company against the First Ma
noasl bank Of Anscortea for an injunction 70
restrain the latter from levytng execution on Q
!aagment by default obtained BY the latter
wsinst tho former January II last, and also
paying that said Judgment 30 set aside The
pfinnfs' complaint relates an interesting
story, In effect a. follows:
On July 2, 1891, the Anacortes Hotel Company
Vas largely indebted to the First National bank
o. Anseor'es. Frederick Ward, president Of the
hank. who was q stock holder in the hotel com.
Tany. was daily expecting visit from the gov.
Gnmsnt bank inspector. and. to enable the bank
70 make good showing so a. 70 pass the inspec.
Ron. be was DESTROYS OF securing responsible
sunsntors upon the negotiable paper OF the
hotel company, which WAS well known to bs In
u embarrassed condition. Ward requested OF
!! T. Mcknight. ono OF the stock holders in the
hartows Bay improvement Company and in the
Plaintiff companies, that these thrse companies,
fgaiher With the Mcknight Land aud Invest
rent Company. should guarantee the payment
a The hotel company's paper then in the hands
o. The bank to the extent OF s., 500, representing
10 Mcknight that the Oregon Improvement
Company would guarantee 81. $40 more, and that
Ist.oo0 covered all the floating debt OF the
ho's company and that II IL was taken care of it
would be placed on paying basis. Mcknight
sld Ward that lie had no authority to sign or
fasrsniee notes for the plaintiffs. or to iu any
v" bind them. either as manager or otherwise.
nsrd ssid that hs WAS expecting the bank sx.
aainsE every day, and that something must be
sOne lie suggested that a telegram 10 sent to
.shes Mcknight, president of the Fidaigo Land
company and trustee of the Fdslgo Improve
Dsht company, for authority to endorse the
ee'ei company's paper. The telegram was sent,
W. TIE next day an answer WAS received from
sshes Mcknight, giving a conditional consent
" The endorsement J. F. Mcknight. however,
o!ecisd 10 signing the corporate names OF the
various companies, ON the ground that he had
70 power OF authority to do so. Ward, how
"ef' sad that something must be done, he had
y lave something 10 show in the event OF the
Inspector coming around, and that II MeSaught
se1Ia sgn ae would take the risk. Mcknight
'uA..y endorsed the paper for the various conn
saa'ss' 81 The same time telling Ward that the
.a'ossemeuis were worthless. and stipulsting
'Aa' he liability OF each company should be
el!ted TO pro rats share of the note. He did
&c, look al sae face of the note particularly,
.aG ga no, know that IL was made payable 10
e fi1a'gc Land Company. but thought il was
~A'e payable to tne bank. and that the bank
'' 20 eet q! ihe proceeds OF the uoie
'ae plaintiffs al.ege thst Wards representa-
49, a. IL the hide btedness of the hotel com
isAf were false and ihat Mcknight was deceived
s'sas. IS matter 81 taes the debts exceeded
'4s sula OF =, 20 and the eompsny Was insolv-
y" AeNsught never had any authority or
sSsef 70 sign or inGOrse note. for them, and
Geta -
ne ran on and sui; Was brought against the
e's sad iadofssrs of the note. and Judgment
oo'Aiuei sgsInst them by default Al exc.
.-'-0a levy ~as Esie On March - Thls, they
VAS iae rrst iaumation they had OF the
-.'AeOen or ~ The pvudsncy o, the action,
ca exam .niug the records tAsy found from
'S'4Fus oi Ihe service attached 20 the sun.
- 'os' t1e fu;aSo Land Com pKny was at
~"St 10 b. served BY leaving with J.E.Mc-
80 eefNneG copies ot the summons and
,P,A'a'' ssIi return al ng that Mcknight
hAhasilg agsnt OF The company. The
PA~i GENES tots allegation and says saas
sA-Sn' az, not az ihAi tine or say other
e, Eansg.u * agent. aud that McNauaht
AAd tAete informed the party making the
sEpsny. ~ WV
s1e fdalgo Improvement COMPANY ssy. that
80 sas taAen against IL through surprise
r.. Ns1'e sil S1cusso.s neglect The sum
t. '" scfTei upoa schulss, the president o:
M NApSny, sts Tine when he as seriously
N, NAs too s.ok AID Inhrm 10 know any
aoea' il. ana ne hSs now no recollection
81 sAsa eerv! &c and he did rot inform tie
o. ofhesrs or agents of tie company OF
''SS' ana tie company ala not know o.