The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1897-02-06
ITS DOORS CLOSED
The Northwestern National Bank of
Great Falls Out Of Plumb.
INVESTIGATION TO FOLLOW
Directors Openly Charge Some Of
Cashier hatcher's Alleged
Friends With Causing All
the Trouble.
INVESTIGATION TO FOLLOW


Great Falls, Feb. 5.-The Northwest
ern bank of this city, capitalized at
s250.OO0 and with s597, ,S9i 90 individual
deposits, according to its last report,
Dec. IL. failed to open its doors this
morning and the following notice was
posted
This bank Is closed pending an
investigation by the comptroller.
tsignedl, Frank Klepetko and c. IL.
Goodrich. directors
The Northwestern was considered
among the strongest banks in the West
and did by far the largest business of
any bank in Northern Montana, as
shown by its deposits, and the closing
OF its doors was shock as severe as IL
was unexpected. While a full state
ment cannot he obtained at the present
writing, 1t Is believed that every dollar
owed depositors will he paid in full. IL
indeed the bank does not resume with
In very short time. The Northwest
ern bank was formerly the First Ma
tional of Benton but was removed to
Great Falls in 1890 under the present
name. II was owned principally by the
Conrad Brothers until about Dec. !,
1896. when their interests were pur-
'hdEtI. anu III IL I0IS MnlGn mas
brought about the present trouble
When the Conrads retired il was un-
derstood that eastern parties had pur-
chased their interests. and change in
officers and directors occurred with
the principal execution of r. ID. Hatch
er, who remained as cashier. In the
purchase of the Conrad interests CASH
Ter Hatcher paid to them about $780,
600 of the banks money VIII ch was in
the hands of the banks eastern corre-
spondent, the Globe National of Bos-
ton. presumably with the expectation
that the stock purchased by him would
he taken by eastern parties. but which
they now refuse To do. OF this the di-
rectors here know nothing. This left
Cashier Hatcher with the bank stock
on his hands which he had purchased
with the money of the bank.
President Coram of the bank arrived
from Boston yesterday and last night
meeting OF the directors was held,
and II was decided hest for the inter-
ests OF all concerned that the bank
should he taken charge Of by the
comptroller. Mr.. Coran was elected
president of the hank two months ago.
hut denies that he ever qualified or
that he is its president, although he
has been advertised as such ever since,
and his name as president appears up
on the United States notes issued by
the bank. All inquiries We're by him
referred Ia Mr.. Klepetku. who said to
n Standard reporter:
II am sure that the depositors will
he paid in fun: in fact there is no
question in my mind unon this point
whatever We closed the bank be-
cause we thought it hest for all con-
cerned. The ease Is this: Mr.. Hatch
or went east In November and claimed
tn US that he had found purchasers for
The Conrad stock. The bank had Sl77.-
| COO or about that. with the Globe Ma
tional Of Boston. Mr.. Hatcher naid
this To Conrad Pros. in two naymnts
/ of s10.00o each. through New York
bank In December This left an over
draft OF several thousand dollars in the
Globe instead Of credit of sl77 600.
Last Saturday Mr.. Hatcher wired the
Globe National To notify the North
western that more money was on de-
posit than really was. Mr.. Coram
learned of this and Immediately left for
this city where he arrived last night.
and wired the comptroller to take
charge. If there Is any loss II will he
on the holders Of the banks stock.
which may he wiped out. The stock
purchased nv Mr.. Hatcher with the
bank funds is in his name
who We're the parties who were 10
purchase this stock"
1T Is believed that Mr.. Coram was
| to he the principal purchaser"
Mr.. Hatcher stated at that time
that Mr. Coram. himself. and Boston
friends Of his 0Hatcher's) were Sthe
i ~ n Tho rnaaiyar &,
statement of the banks standing as
soon as possible. outside Of the in
convenience Of waiting. the depositors
will suffer none. | can assure them.
The entire trouble was due Ia Mr..
Hatchers misapnlication of the funds
denosited in the Globe National"
But little excitement was noticeable
on the street to-day, although half or
two-thirds Of the money on deposit
belongs to laboring men. The Boston
g. Montana smelter has paid through
| the Northwestern. and since the reor-
ganizatiOn il has heen the general un-
derstandlng that the hank was owned
/ Ivy that company the officials of the
company in many instances being also
officials of the bank. No trouble what
! ever was experienced I'm any Of the
/ other banks If the city nor We're there
1 any attempt at a run or any percepti-
/ Bile furry. No county or city money
/ was on denoslt in the closed bank. L.
| G.. Phelps of this city has been ap-
| pointed temporary receiver.
Cashier Benton u. Hatcher remained
| at his home all day and refused ad-
mittance To any one till late last even
/ ing, when he was seen by "A reporter.
| Mr. Hatcher is broken up badly and IS
/ in most pitiable condition. While
unable to give a clear statement of the
entire matter, owing TO his condition.
he said: II hone for the best in this
matter. and while I am unable to
| make clear statement just now,
want YOU to say for me two things:
I First. I want my friends TO know that
| have acted honestly and sincerely in
every detail I'm this unfortunate mat
ter: and second. I want to say. from
my own intimate knowledge Of the
bank and its resources. that every de-
| positor will he paid in full. I know
this may seem hackneyed. but I know
/ that the bank is solvent and will pay
dollar for dollar ON deposits. There is
not the slightest danger that they viii
lose a cent i'm the failure. l don't care
to say anything further | am not in a
| condition to do So"
An unofficial estimate Of the situation
gives assets about 81 100000; liabilities,
deposits. less than 100000; outstand-