The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-10-05
THERECEIVER OUSTED
Wheeler Gets His Man i'm the
Blaine National Bank.
BUT HE is ARRESTED HIMSELF.
Receiver OF state Bank. Goes I'm at Pts
toll Point. but Is Compelled TO
Give Up-PeopIe Excited.

Excitement has broken out afresh in
the difficulties Of the Wheelers and their
banks at Blaine. They have been operat-
ing the Blaine State bank as the success
sor of the Blaine National bank. which
became embarrassed year ago. and was
thrown into liquidation. retaining its old
set of officers with H w. Wheeler as
president and e r. Wheeler as cashier.
A few days ago Lester ". David was
appointed receiver Of the Blaine State
bank by the superior court for whatcom
county, and took possession Of the prop
erty at the point of revolver. Yesterday
the Nheelers made a new move. and hav-
ing secured the appointment by Judge
Hanford of the Federal court. OF r. W.
Emmons. of this city, as receiver OF the
Blaine National bank. they proceeded 10
Blaine, and are now in possession. The
particulars are given In the following spe
ciai dispatch to the Post-Iutelligencer:
''Whatcom. Oct. 4.-Special.-Deputy
Marshal McGinnis returned from Blaine
this evening, having this afternoon under
a sweeping order from Judge Hanford,
custer Receiver Lester ". David from
the possession of the Blaine State bank
and placed r. W. Emmons. OF Seattle, in
charge OF all its books, papers and as
sets as receiver of the Blaine National
bank to which the State bank is success
scr, having the same officers and stock
holders the only capital OF the latter be-
ing the capital stock of the former, which
still has a corporate existence. An ex-
cited crowd surrounded the bank and wit
messed the transfer David made for
NAL protest personally and through Sena-
tor Dorr. acting as his counsel. but no diff
ficulty occurred.
About the same time f. r. Wheeler.
cashier of both institutions, was arrested
on complaint OF ID. c. Primer. charged
with receiving money for deposit in the
bank to be insolvent. He will have
hearing tomorrow. He gave bond of
s.. 500 for appearance.
The Wheelers Charge Conspiracy.
In applying to Judge Hanford for re-
ceiver for the Blaine National bank. T.. r.
Wheeler, who brings the action, says that
David was appointed in pursuance of a
conspiracy. and that although he ne
elected to execute a proper bond. he en-
tered the bank, pistol in hand, and COM
PEELED the old officers to get out. Then
Wheeler says David forcibly seized the
property, including all the records and
private papers of the Blaine National
bank, together with large sum OF money
and one pTomissory note of great value.
BY reason OF the wrongs and trespasses
committed, the deposed cashier claims
that the Blaine National bank Will be IN
able to pursue its purpose OF carrying the
corporation through liquidation. He then
refers to David as a man wholly irrespon-
sible, financially insolvent and OF bad
reputation as a business manager and as
an officer. known to be largely in default
10 the city of Blaine in his office as former
treasurer
The petition is supported by the afiidav-
its of J.. H Wheeler and II. ". Wheeler,
the latter of whom. in addition TO being
president of both corporations, claims 10
hold forty-six shares of stock in the
Blaine National bank and five shares in
the Blaine State bank. as well as being
trustee for large amount of stock. L. II.
Wheeler, cashier of both banks, claims
fifteen shares In the Blaine National bank
and ten shares in the Blaine State bank,
and to be trustee for pa shares of the for
mer and 100 shares of the latter. lie has
made the petition, he says, on behalf of
ali the stockholders except a small minor
Sly who have Joined the conspirators.
Judge Hanford. on appointing Emmons,
fixed his bond at s2,oo0.
How the Old Succeeded the New.
II appears from the papers in court that
the Blaine National bank was organized
in 1891 with a capital of $50eo0. and con-
tinued actively in business until Septem-
her, 1894, when IL went into voluntary
liquidation for the purpose of closing up
its affairs without prejudice to the rights
of creditors. stockholders or persons 9TH
erwise interested. In following out that
purpose there was organized September
% 1894. the Blaine State bank also with
capital stock of so 90, subscribed by GER
tain stockholders representing over 50 per
cent. OF the capital stock OF the Blaine
National bank. One of the principal pur-
poses of the Blaine State bank was 10
continue the business carried on by the
Blaine National bank, and in pursuance
OF that object the new corporation was let
into the office and use of all the facilities
OF the Old. David, who is manager for
the Streator Manufacturing Company. of
Blaine. is alleged TO owe the Blaine Ma
tional bank money in excess Of s5,01o.
II is claimed by friends of the bank that
it's financial standing is indicated by the
fact that IL has always met it's obligations
and that its paper has never been dishon-
arqd