Capital journal. (Salem, Or.) 1893-1895, 1895-10-18
Will Go Ont of Business With a
Receiver.
A Big DEMAND FOR CITY MONEY.
For Months There Have Been
Steady Withdrawals.

did not open Thursday, Judge Parker
at the request Of ttock holders, havin,
at D a. m. appointed s. M. Nolan, on,
the director receiver. This action wa
brought about by City Treasurer Nc
CauIey calling on the bank to pay SO
800, the cIty's balance on deposit, OF
short notice, the city needing th,
money to pay interest in New York
The application was made by Fremont
Campbell for the bank, aud he wal
appointed attorney for Eeceiver Nolan.
The latter's bond was fixed at S25 OOO
with w. J. CoggsweIl, r. B. Muleh
and Judge Frank Allyn as sureties.
When the city's demand was made
President Frank Allyn called the dir.
ectors together. They met and were In
session nearly all night, deciding early
this morning that 1t would be unpro6t.
able to continue business longer,
Papers in the receivership case were
then prepared, with the object of
liquidatiDg. The banks liabilities are
between $4,000 and $4,000. and the
asserts over 100000. The last state
ment Of the Commercial bank, made
on May 81. showed: Loans and die
counts, $2S5, $3.50; cash on hand, $24, ,OOS;
certificates Of deposit, Sl3, ,4el; deposits
subject to check, $62, Te5; undivided
profits, eIs,7lO. The bank was organ
lied In december, 1891. Its stock
holders include number wealthy New
York men. The officers and directors
OF the bank are. President, Frank AL.
lyn; vice-presldent, o. X. HIscOdk;
cashier, Arthur Bridgman; w. r.
Rust and j. II. Price.
The city's deposit OF SO 900 has b cen
guaranteed by Mr.. Rust.
"The Commercial bank was organ.
ized about four years ago. A little less
than three years ago 1 became Its
president. The panic Of 1898 followed
soon after. At that time the bank had,
In addition to large general deposit
list, over $1,000 Of city funds and
500, 900 OF county money. We paid the
city promptly until Its balance was
reduced to about 81, 1000, and gave the
county back every dollar. Since the
p mic we have paid of our depositors
until less than $4,000 remains. We
p aid this money during period when
the great majority of financial institu-
lions have been unable to reduce their
liabilities In any such proportions.
since the failure Of the Bank OF Ta-
,oma and the persistent street talk
Incident to 1t there has been steady
,lt quiet withdrawal Of funds. We
lave realized for two weeks past that a
Iteady run was on, either incident TO
he late failure or from other causes
Yhich we are unable TO locate. In the
every effort has been made to
ealIze on our securities, which were
.mple, II they could be cashed, to pay
leposltors four times over. AT late
lour Monday night we we're notified
" the city that its balance Of $1,000
would be checked out the next morn
ng. OF course, we had not anticipated
bis, although we were making every
fort to realize on securities. We con-
Identity expected, until late hour
ast night, that we would succeed In
ashing certain securities, enabling us
0 pay the city and any one who
yanted their money. At meeting Of
he directors last night, we decided
hat, as our anticipatiOns had not been
there was no other course left
pen, In justice to our stockhOlders and
,redItors, than to 60 into hquidation'
nasmuch as the city was insisting on
he immediate payment of Its account
rhis was done by the appointment Of
Mr.. g. M. Nolan as receiver. In three
we will be able to pay of all
BUR creditors and have handsome sur
olns for the stockholders."