The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-09-12
THE BANK WAS NOT LOOTED.


Ever since the Merchants National
Bank was forced 70 suspend on May 20
charges have been sToat that Tire Officers
o. tas bank figured II a conspiracy 10 loot
II and eefraad the stockholders. but Re
ceiver Charles n. Baker. after thorough
examination 81 The causes which led 20 the
suspension, has come 10 the conclusion
mat these charges are unfogude1. Mr.
Baker sad yesterday:
IL Is apparent 70 me that the bank had
been operating n It's normal condition up
70 NAY =. when there was a run II
opened thai morning with cash balance
or 81. -. which vas augmented before
business commenced BY 3 loan from the
clearing house Of So ZOO. which was IN
tended as temporary relief and was
thought % be more than sufficient TO tide
over any crisis. This loan was secured
by block OF notes and other securities Of
toe Merchants National Before o'clock
OF that day this had been drawn down 10
$z.I23ss
For several DAYS prior 20 the suspen-
sion, negotiations had been on foot for con-
soEdation with the National Bank OF
commerce. This was known 70 the directors
or the two banks. and TO members OF the
clearing house. When finally negotiations
failed, u was reported on the street that
the consolidation had been attempted in
order 20 save the Merchants National,
but that. the attempt having failed, the
bank was IN an unsafe condition. The
knowledge OF the proceedings being held
oy some twenty individuals. il soon be-
came more or less general information, re-
suiting IN the hasty withdrawal OF de-
posts. / am led 10 believe that certain
depositors got the tip but that such did
not come from representative of the
Merchants National. but probably from a
member Of the clearing house
There Is little question that the reports
so circulated caused the run on the bank,
for the sums paid over the counter MAY
% aggregated $ii.077. while for twenty
days prior TO that date the average total
checks drawn each day was less than
$500 The largest checks drawn May %
were three In number. and aggregated
$4,000. They were drawn by the city treas
urer. the county treasurer and the
Union Electric Company There was
also on the morning OF that date
shipped 70 the assistant United States
treasurer az San Francisco $4,000 as an
excess United States deposit. The balance
was drawn out in $50 checks, representing
various sized sums.
ut seems, however, as though without
marked improvement in the general bust
ness situation this failure would have been
inevitable, sooner or later. The bank is
loaded UP with a good deal OF overdue
paper, particularly that known as 'Stin-
son paper (about $50 000, upon which IL
would have been a slow process TO real
TIE"
The officers OF the bank were: Angus
Macintosh. president; William Il. Wick
ware, cashier; H. r. Meserve. assistant
cashier: s. q. Graves. teller. In running
through the accounts of the officers, the
receiver states that he noticed they car
ried very little money in the bank. and
that they had drawn no checks 10 amount
to anything for a good many weeks. In
closing the interview. Mr.. Baker said
II am unable TO discover as yet that
there has been any past irregularity IN
the management OF the bank. or that the
failure in any way inures to the benefit of
its officers
Mr.. Baker says that there are about Coo
claims altogether and that very few of
that number ara outstanding, and have
not been proved.