The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-08-30
ECKELS WAS RIGHT.
Had Authority to Appoint Re-
ceiyer for Tacoma Bank.
Consest Over the winding Up Of Affairs
Of Washington National Bank
OF Tacoma Settled.

II appears that for once in his career
=. eornutrcgler Of the currency OF
the United States Mr.. Eckeis has
been in the right. Judge Hanford
held yesterday that ne was when BE or
uered the Washington National bank. OF
Tacoma, to go into the hands Of ex- Mayor
Stuart Rice, of Tacoma. as receiver. By
telegram from Washington City, dated
Monday. and sustained the plea IN bar.
filed In the suit for temporary inJanc-
ton commenced by the bank against the
comptroller last week.
The facts in the case were that the bank
went into voluntary liquidation on july
II, although the institution vas not IN
solvent. as its directors afterward alleged.
The BOARD Of directors then proceeded TO
wind up the affairs OF the bank IN as
economical manner az possible. This
state of affairs had continued Tor just one
month when the comptroller teiegraphed
that he vas no: pleased with them and
ordered Bank Examiner Clary to take
charge and appoint receiver. Ciary
did so, but when ne attempted
20 get possession OF the bank
Ia vas kent out by the
directors. He went on and appointed
cesycr. however, and the receiver tried TO
gain possession and failed almost entirely
10 do 30. In the meantime the
bank had commenced a suit against
the comptroller and all persons claiming
authority under hum for temporary in-
Function against ali interference on their
part. To this suit the attorneys for the
comptroller flied plea in bar, alleging
the legality of the cornptroiler's act ana
also alleging the BANK to be insolyent.
contrary 10 the allegations made IN the
complaint. which stated that the bank
was at all times but temporarily embar-
raised and never insolvent.
On this plea in bar the argument was
made before Judge Hanford Monday and
the case taken under advisement. Yes
terday morning the decision, very i'm
portant one, was handed down and the
plea sustained. This practically decides
the case in favor Of the comptroller as the
case was brought squarely TO an issue. ac-
cording TO Attorney Sullivan. Of Tacoma.
who argued the case for the bank people.
The decision is given below.
In the United States district court, dis
trict of Washington, Western division.
Washington National bank. OF Tacoma,
VS.. James III. Eckeis, comptroller Of the
currency, and Charles Clerv. national
hank examiner.
At chamberlain equity-Bili by the
Washington National bank. of Tacoma,
for an Injunction to restrain the comp
troller of the currency and bank exam
liner appointed by him as agent, from pro-
ceedipg after the bank had. pursuant 10
vote of more than two-thirds of its stock
holders. gone into voluntary liquidation.
TO take possession of the assets OF the bank
for the purpose Of putting the same in
charged of receiysr. The defendant,
Ciary, bank examiner, interposed plea
I'm bar alleging that the comptroller of the
currency after due examination, being sat-
listed that the bank was insolvent. had or
dered hi a To take charge of the bank for
the purp fse OF turning the same over TO
receiver 10 be appointed pursuant TO the
act of June 80. 1876 Supp. r. g. ID Ed,
f0T. Hearing on exceptions to tho plea
for insuihciency. Plea sustained.
Crowley & Sullivan for complainant. WILL
lam IL. Brinker, United States attorney,
aud r. G. Robertson. assistant United
States attorney, for defendant.
Hanford. district judge. torally.)
In the cass of tho Washington National
bank against the comptroller of the cur
rency. pending at Tacoma. regard it as n
great hardship that the comptroller of the
currency should deem il necessary to in
terfere In the settlement of the business OF
the hank. by the officers and means which
have been chosen by the banks stoektold-
ers. directors aud creditors. and which are
satisfactory 10 them. especially in view of
the uncontradictsd nveTment in the bill
that the bank is able to meet all OF its obi
cations, AMI willing to do so and intend
ing TO do so, and that it 10 proceeding rs
we'll as IL can to liquidate--that Is. 10 pay
and Gloss up its business. Now. regard
Ing IL as n hardlhip. have endeavored. in
rejecting on tho case, 10 bring my mind TO
the conclusion that the court may law
fully interfere by issuing an injunction
TO restrain the appointment OF a receiver,
bat the result has not been satisfactory
In isTS congress passed a law, which In
terms, gives the comptroller OF the cur
rsncy the right 10 appoint receiver
whenever he becomes satisfied after an
examination that national bank is in.
solvent Tie power thus vested in ths
comptroller OF the currency is discretion.
ary. and think tho rule holds good In
this case rs ia others, that where the head
OF a buFeaAin one OF the departments oi
the government Is clothed with discre.
tionary powers aud authority 10 inyesti.
gate facts and act upon his conclusion, his
conclusions as 10 the facts are final and
not RENEWABLE by the courts, so that the
decision of the comptroller of the currency
ta this case that the bank is insolYent il "a
le tagen a. a iinality. IL is equivalent "a
the fact whether the hank Is realty in
solvent or not so far a. TO authorize this
exercise of the cemrtroiIer's power To put
the bank in the hands OF \ receiver
Section 5 80. Revised Statutes, gives On,
stockholders the right by two-thirt,s vot,
20 put the bank in voluntary liquidation
But there the law, so far IS il gives IA,
stockholders or officers Of the bsnk ans
rights, ceases, 1t simply declares that they
may. by vete, so into voluntary hqGida
ton, and then the duty deyoives upor
them to give certain nctees-give motto,
90 the comptroller aud give notice &
everybody by publication. But | arn un
able 10 hnd in that provision anything q
control this later acs of congress yestins
the comptroller with power 10 appoint I
receiver te take charge of national ban 4
when he becomes satisfied that IL Is insol
vent. The same statute Of 1873 provide,
when the stockholders may chooss
al agent TO take charge of IN,
business Of bank In liquidation. that is
after the receiver has had charge OF IL Ions
enough 10 pay all itS debts. aud after III
debts have all been paid. then the stock
holders can select an agent TO tAks Gle arg,
Of what remains Of the assets. Nov. a
that seems sotndissss that the comptro,lrl
as she head ot the bureau having charge %
she national haaks OF the United States
representing the government 50 tar as 4
has any interest. representing tAe creil
tors aud stockholders, is vested vial
power 10 take charge 81 = bank and a.,
point = receiver whenever certain conai
tone exist. and do not think thst thl
power is limited 81 cases Ia which bis &C
bon may 10 taken before the esak Ia
ceased 10 do banking has!
mesa The rigAt 10 clos,
mp the woris Close ap" u~es
In the statute. mean the liquidation ans