The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-10-28
FDS|Oh|SIS Rave LOST
$4,000 N BROKEN BANK
Continued From Page One.

Bonds and warrants .S3-s, ri 70
Interest on same .................. lei, $40 90
Tacoma coupons II 80
Equities in warrants -..-...-....... 10 90
Mortxaxe loans and discounts 80. ei.a7 IS
Accrued interest on same 1..Sas go
Stock securities and claims ?.9i6 -
Overdrafts ..... .... .......... sac 10
Real estate ..,.... ...... ........ e,5oo ~
Furniture and safe .. ...... leo GO
Checks and drafts .-.-.... ......... $50 90
Cash with New York Security
ard Trust Company .............. 1910 81
Cash on hand ... 5000. 49,. lo1 80
Total resources ......... Sss6, IL 81
They 60 OFT the Bond.
Some time near the failure Of the
bank, it seems that some OF the state
treasurer's bondsmen became uneasy
and withdrew, evidently the Pullman
bank people and the Spokane bonds
men, for on August s, 1897, two sup
Elemental or additional bonds We're
filed, as follows: By Manson +. Back
us, Edward o. Graves William r. For
rest and H. Beardsley Bagley. OF the
Washington National bank, of Seattle,
for 500, 900. and by c. ]. Lord, n. H.
Owings, F. r. Brown, o. c. White and
J. r. Pattison, of the Capital National
bank, of Olympia, for $4,000 addi-
tionaL
On August II 1907, G. w. Young,
~ state treasurer, filed with Re-
ceiver Richardson, Of the broken
Tacoma bank, his proof of claim,
showing n balance due upon gem
eral account, June 30, 1897, Of
$4,000. the claim being sworn
to ON that date.
With that act the states money
was allowed to lie. for NO furth-
er effort has been made to secure
1t, SO far ~ the records show.
This Is peculiarly strange If it
was desired to protect the state.
The supreme court of this state has
decided that state, county or municipal
treasurers cannot loan money to a
bank. The court has also held that
deposit in bank Of state, county or
municipal funds contrary to law is in
the nature of loan and that where
the funds, as in this instance, were de-
posted in the bank in the name of c.
w. Young, treasurer of the state of
Washington, it was a trust fund and
the assets of the bank could be followed
into the hands Of the receiver and the
trust imposed upon the assets in the
hands of such receiver. The theory of
these decisions is that the title to the
funds belonging to the state, county or
municipality does not pass to the bank,
but that the bank holds the funds in
the nature of special deposit. This
principle is laid down in what is known
as the Spokane county eases decided by
Judge Hanford ana reported in the Fed
eral Reporter.
This, therefore. indicates that
the state treasurer has been de-
relict in not attempting by some
proceeding In court to Impress
this trust upon the property in
the hands of the receiver.
The investigation Of the papers on
file in the superior court of Pierce coun-
IS fails to bring 10 light even petition
by Treasurer Young in an effort to Sc
cure the state, and he has contented
himself by merely making out an ac-
count of his claim and filing it with
those OF the other creditors.
Fortified with this information, l to-
day called upon State Treasurer Young
and without disclosing the direct OBJ
ject of my visit, asked him il he
would explain how the states funds
were cared for.
Mr.. Young complied. He showed
how the moneys were credited to the
different funds and how disbursed.
Where is this money kept?" asked.
Our Office safe is not large enough
to keep all OF the funds here" be said,
land the money is kept mostly In the
Capital National bank, OF Olympia
And what is the average sum OF
money on hand?'
THAT is difficult to tell. but approx
mately it would average s400, 600 in
bank. Our quarterly statement shows
what is on hand, but you should under
stand that there may be warrant call
of 100000 or such a matter which
would be reducing the fund"
ut is safe to put the average amount
on hand at $500, 900 to $500, 600 isn't
it,"
Yes" replied Mr. Young.
''Do you deposit funds in any other
than the Olympia bank?.
Mr.. Young looked up quickly, but an
swered promptly:
Yes, in Colfax bank and In a Sc
attic bank"
Would yen give the names Of these
banks?"
There is nothing behind the curtain
az ALL" said the treasurer, but would
rather not give the names of the banks
with whom We are doing business"
How is the state protected" / ask
ed.
1T is protected by a bond from the
banks to me. and my bond TO the
state"
How much Of state funds do Won
carry in the Seattle and Colfax banks?"
Mr., Young Was tlinching just a lit
tie. He was evidently wondering what
this was leading to.
Il can't tell you the exact amount; it
is hardly necessary"
why did you select these particular
hanks"
i do business with them b<scaus.
they are safe institutions and am