The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-03-02
NEWS OF TACOMA
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Gu@ 111D RAc1SIr AvxsrR
InonAs GAnMoss, NAyAona
THE BANK WRECKRRS
Thonpssn, Drum, Csllyer and
Davis Indicted.
STRAW PAsEa m THG ASSETS.
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TACOMA. March L. fepseiall-Ths
Hedsral Grand Jury tedsy indicted NAM
bsr Of ths oG3osS Of the Suspended Nor.
ehsnts' National hank on seven counts.
alleging faiss sntry snA straw paper =
follows:
Promissory nosss-S samuel Coiiyss %
Losisia d. Collyr, 6sptsmbsf. 1881
False susrsss OF promissory notes-w.
X. Bradley. December %. 100. t3sA;
william n. Adams, September ii isC,
1880 end >s7o interest; Henry Drum
49, ss " J. 7, Tss @s a Iaon M a.
president, sd y. w. Perrin. sseTssary.
eoufh Side Land Company. {2so01
The men indicted are: Ex-prssident
Waiter J. Thcmpsop, Vice President
Henry Drum. Cashier Samuel ccllyer.
Assistant Cashier II ]. Davis Judge
Hsnfosd fixed their bsii In the sum OF
q. 500 each. and IL Was promptly furnished,
- follows:
Assistant Cashier z. J. Davis-Sursty.
John ID. McAiiisser.
cashier Samuel CoIiysr-sursty. Gen.
Vice PRECEDENT Henry Drnm-surstlss.
Hugh c. Wallace, Ferdinand 7. Mead.
Charles w. Morrill,.
Ex-Prsssdent w. J. Thompsnn--Sure-
ties. George O. Kelley. William II. Fife
The indictments were handed In shout
2p. IA. and before 5 r. m. the men M
dicted had turnished bonds and departed
from the once Of Clerk Ayres. Of the
United States court. The warrant In sach
instance was given TO Deputy Marshal Ed
Nfnch. bat before he had chancs TO
notify most Of the men they appeared
with bondsmsn and inquired the amount
Of the bonds. Judge Hsnford having gone
20 Seattle before the indicted men had an
opportunity to appear Clerk Ayrss pre-
pared the bonds.
Before reading the Indictment all the
officers assured a reporter Of the Tacoma
bureau Of tbs Posr-IxrELIisEscKa that in
no case could any premsditated criminal
!, ify be found in connection with the Affairs
I Of the Merchants National. When Vice
1Prssident Drum and Cashier Coliyer were
notified OF the nature OF the several counts
they both insimatsd very strongly and
emphaticaily that the charges we're oil
bosh.
"How about the alleged false entry Of
prsmissory notes7" they were asked.
Both replied that IL would appear upon
tho face Of the indictment that the paper
referred to was the renewal OF old notes,
which Mr.. Coliycr said vas quite proper.
II 10 alleged in the indictments that most
Of this paper. which Il 10 charged was
falsely entered. Vas not given for any value
received, and was therefore straw paper.
the indictment further alleging that such
false entry Of such paper being made in
most Instances 70 dscsivs Bank Examiner
Charles Ciary.
The only witnesses Endorsed upon tho
indicfments ~ appearing before che jury
wers Receiver Robert Wingats. Of the Msr.
chants National. and ". J. Cooper. who
was one Of the principal bookkcepers. Mr..
Cooper. the indictment alleges. made the
alleged false entries OF the alleged straw
paper, and he did 90 for the officers who
were indicted for the purpose Of willfuily.
fraudulentiy and feioniously deirauding
and working injury 10 the bank associa-
sion, which had no knowledge Of their
acts.
By the uss Of the alleged straw paper
for the purpose Of decsiving the bank ex-
amlner. IL 10 understood. the officers were
intsnt upon making him believe tho bank
was not In . condition which tho alleged
straw paper msds 1t appear. Mr.. Ciary
for long time kept q very close watch of
che bank and examined its conditi On fire.
quentiy.
Most Of the notes were 10 run for ninety
days. and the alleged false en.ries con-
sisted OF entering tho notes In the book
known ~ "Biiis Discounted Registered"
This was done. IL 10 alleged. when the
truth was that the notes were not pur-
chased or discounted by the bank, and
such entry was therefore false and fraudu-
lent
While thu bonds were being prepared
the rise and fall Of the Merchants bank.
and subsequently the Merchants National
baak. Of Tacoma. was discussed with the
indicted officers by = representative Of the
posI<IsrxiisexNcRR This bank was The
oldest in the city. aad Was the second ma.
tlonal bank here. 1t was made Q nation a
bank, with soo.doo capital. in May, issl
In the 'shoctn" days. hack In the old di
rcctors' room aud the larger raasn back OF
IL, which was used for general sssein b,
purposes. many OF the biggest and most
promising schemes this city ever dreaneJ
Oh Netf p-sAfssAcA AGA sN>tsfSNs ARtsS We
participated we're designated a. the al
tide point Of the boom IN isss as Tn,
sMsrchans Nasionsi bank crowd
There Was another crowd knowf
~ tho Tacoma National ban.
crowd" The sxo crowds" never mixed
Many still believe the rivalry of ;hos.
boom days never died ont. and VANISHED
oniy with the death ot the fallen bank
Some. indeed. hold that this rivalry kills.
che Merchants National. inasmoch a. tht
clearing hoase failed To help the MeY
chants National when 1, was troubles
with the death rattle. Right here an ex
psaaatson is needed The Tacoma clear
Ing house agreed 80 protect the deposition
OF tho Merchants National. IL nsve
agreed in 50 macy words 10 meet she lie
manas OF the correspondents o; the fsiI
ing banx. Ga the last day Of last May tia
sleariag house association agreed To PRO
tecs the aepo~lsors. and oa thas day Cash
ier cellyer said:
"fhs run vas net marked. | vas in th
paying teGieFs cage Jurlng ali that noai
hour, aud l xas surprised st tha Qu.e
ceadliian Of affairs. I believed the sSurf,
~as over, and that we would weather {
ell right. Rgt that night she CHASE Ma
ttoaas aeman ded pesers ptory sst;legaen
a. its seeouat Of so;ss 81 fsa 1. tssAt u
srsnd had net b~sn made believe "
would have pulled through"
1he newt day. after all the cssh O,
\ q.