The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-05-26
FORCED TO CLOSE
The Guarantee Loan 4 Trust Co.
Makes m Assignment.
cAusss or rne FAILURE.
jacob YnreA n cAssU - Aaaesss-
III 0uaranessA ysersunvs Loans
Too MucA - Garry.

Ns-sIr-& 80 R1h<<8 yr83fflAF. A{<Q jacob
Furth. ~ Assignee. il rev n charge OF
IN. business for the benefs o. creditors
The fsslowins statement vas given out
by the trustees.
The S1zrzatee Loan q Truss Company
was orEznlxed in the year 1857. with q
capital OF Sg.ssG which was increased in
the fall at 1888 to 3eS.se its present limit
The ban1k did an extensive ara profitable
business until the financial crisis. IN the
summer Of lisa sinc~ which tine there
has been = steady decline In iss business
The continued financial distress. the fall
IRE OF Its borrowers 70 pay their oeiigA-
Ions. especially interest upon mortgages
guarantees by II. the irnpoesibulty to
mako collections. has rendered IL advts-
aois II the opinion OF is directors to dis
continue business. and TO make an as
sisnment Of all It's property for the beae-
NJ OF Us creditors. An esssxnmsnt vas,
therefore. made to Mr.. Jacob Firth OF
this city. preasdent OF the Puget Sound
National bank
Tho main liability Of the hank - 20
Eastern holders of its guaranteed mort
saseG Its liability to deposifors il CON-
parztively ANAL. . large proportion OF
which IL held BY stockhoiders OF the bank
TT " believed that ~ soon A. the as
sets Of the company can be turned into
money. there win be more than suficient
20 pay its deposifors. Moreover. the ma
jority of the stockholders are financially
able 10 meet their liability upon their
stock. imposed by the state statute
1T II hoped that all OF the deposssors
VII be paid In fun. and an adjustment
made with the holders Of its guaranteed
loans. for . reorganization Of the COM
pany TO continue thu mortgAge business"
The total deposits OF the bank amount
to sis4. 90. Of which 80 90 II held by the
stockholders of the company.
When a little type-wrltten notice was
posted on the door OF the bank yesterday
morning. people passing BY. noticing Il.
would stop. read II. and after waiting
around few minutes would pass on. 1t
was the same story all day. The notice
was probably read by hundreds OF pso-
pie. but At no time was there any crowd
present. or any excitement noticed The
notice read:
This bank has been closed by order OF
trustees. and an assignment has been
made for the benefit OF Its creditors"
During most OF the day the trustees Of
the company. ". A. Peters. E. d. Down
ing. J. ID. Iowman and George Hyde Pres
ton. were In session. at the bank. making
ready TO turn its affairs over to the as
signee. The front door was Of course
locked and once in a while an anxious face
would be pressed close to the glass. the
face Of some one who had money In the
bank. and who found II hard to believe
that he could not get II out.
Al the other banks business went on as
usual. and the failure had no effect on
them. although. as one bank president
said, there are always few timid people
to whom bank Is a hank. and who fail
TO discriminate between one that has
failed and one that 10 sound. These. of
course. viii be tempted to withdraw their
deposits and use the old fashioned stock
ing.
Perhaps that which more than anything
else caused the Guarantee Loan 4 Trust
Company 10 70 under was Its plan of
selling guaranteed mortgages. The bank
would takes mortgages on farm
property. ana sell them. mostly to East
ern customers. with the principal and in
ferest guaranteed When the panic came
on In 1885. and since the makers OF great
many OF these mortgages have been un-
able TO pay even the interest. and under
It's guarantee the bank has had to make
the amounts good TO the mortgage pur-
chasers. There Is hardly a company in
the country doing this kind OF business
that has been able 10 withstand the
strain. The Lombard Investment Com
pany and tho Solicitors Loan & Trust
Company are notable examples.
II.
Hebron, the former manager Of the bank.
the city withdrew It's deposits entirely.
which helped 10 cripple the Institution.
The only county money In the bank was
about Si.ao, deposited by County Clerk
Gordon Tho statement IN an evening
paper that l. 3. J. Hunt and the Heilbroa
estate owed the bank about $4,000 Is en-
tireiv untrue.
The stockholders are scattered all over
the country. the largest haiiing from Har-
risburg. Pa. the home OF the Baileys.
Mrs. Minor. widow Of the late Or. Minor.
and here two daughters. who are at pres
en-; IN Berlin. own fifty shares. The largest
res'den, holder IL Z. h Downing. seere-
tary OF tho company. 80 shares. The
names OF all the stockholders. their resi-
dences and the amount Of stock they own.
were obtained from the county assessors
Office:
No.