The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-10-17

Tacoma, Oct. is.-The Commercial bank.
organized under the state law, did not
open today, Judge Parker, at the request
OF stockholders, having a a. m. appoint
ed > III. Nolan, one Of the directors. re-
ceiVeF. This action was brought about by
city Treasurer MeCauley calling on the
bank 20 pay $500 the city's balance on de-
post, on short notice. the city needing the
money 10 pay interest in New York The
application was made by Fremont Camp
bell for the bank, and he was appointed at
torney for Receiver Nolan. The latter's
bond was fixed at S25 go. with w ]. Coggs-
wen. r. B. Mullen and Judge Frank Allyn
as sureties.
When the city's demand was made Pres
ident Frank Allyn called the directors to-
gether- They met yesterday at 5 p. m. and
were IN session nearly all night. deciding
early this morning that il would be un-
prontdbie TO continue business longer.
Papers in the receiyership case were then
prepared, with the object OF liquidating.
The banks liabilities are between $1,000
and 10000, and the assets over sls0. .0oo. The
last statement Of the Commercial hank.
made on May 81, showed: Loans and dis
counts, $235,Sss cash on hand. S2400S: GER
uheates OF deposit. Si3.4sl: deposits sub
Ject 10 check, So, t65. undivided profits, SIS
40. The bank was organized in December.
1871 Its stockholders include a number OF
wealthy New York men. The officers and
directors Of the bank are. President.
Frank Allyn vice president. .. h. His
cock. cashier. Arthur BTidgman, W. Il.
Rust and J. H. Price
The city's deposit OF S60s9 has been guar
anteed by Mr.. Rust, who is manager OF the
Tacoma smelter, and MIR HiscOck. The
money Will be promptly paid by these gen
tiemen.
To the Post-IntelIigencer correspondent
T.
bank, gave the following statement:
The Commercial bank was organized
about four years ago. \ little less than
three years ago | became its president.
The panic of 1898 followed soon after. At
that tirNe the bank had. in a0uition TO a
large general deposit list. over $4,000 Of
city funds and $4,000 of county money.
We paid the city promptly until its bal
%nce was reduced to about 5000 and gave
the county back every dollar. Since the
panic We have paid off our depostors until
less than $4,000 remains. We paid this
money during period when the great ma
jority of financial institutions have been
unable to reduce their liabilities in any
such proportions. Since the failure of the
Bank of Tacoma and the persistent street
talk incident 10 IL there has been a steady
but quiet withdrawal of funds. We have
realized for two weeks past that steady
run was on. either incident to the late
failure or from other causes which We
have been unable 10 locate. In the mean
time every effort has been made to realize
on our securities, which are ample. If they
could be cashed, 10 pay depositors four
times over. At a late hour Monday night
We were notified by the city that its ball
ance OF se0O would be checked ont the
next morning. of course We had not an
ticipated this. although We were maxine
every effort 10 realize on securities. We
confidently expected. until a late hour last
night. that We would succeed in cashiug
certain securities, enabling us to pay the
city and any one who wanted their money.
AT a meeting of the directors last night.
We deciCs,d that, as our anticipations had
not been realized. there was no other
course left open. in justice TO our stock
holders and creditors. than 10 go into liqui-
dation. inasmuch as the city was insisting
on the immediate payment of its account.
This was done by the appointment of Mr..
s Nj. Nolan as receiver. In three months
We Will be able to pay of all our creditors
and have a handsome surplus for the
stockholders"