The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-03-11

The affairs OF the Merchants National
bank. which failed May u. 1895. have been
made the subject of investigation by the
grand jury. Particular inquiry IS being
conducted into the responsibility OF Angus
Macintosh, president or the bank. Wit
nesses have been examined who have tss-
tilted 10 the condition OF the bank at the
time OF It's failure, the dividends that
have been paid since by Receiver Charles
III. Baker and 10 other facts Of interest.
IL Is understood that evidence has been
laid before the grand jury in the form
OF affidavits tending 10 show that some of
the officers OF the defunct institution were
not wholly hlameIess. IL was whispered
through the corridors of the court house
yesterday afternoon that an indictment
against Mr.. Macintosh, now supposed
To reside in California. might be filed with
the court.
All grand juries are supposed to have a
wide latitude While considering the al
legations OF crookedness in connection with
the failure of the Merchants National the
grand jury, just to show that ii had lis
hand in" brought in three indictments
One OF them bears the name of F. s. Kin
ney. the ex-road supervisor. whose con-
fesson of completely In the frauds in which
ex-County Commissioner Heatcn was all
reading public.
The two other men against whom indicf-
ments were returned are J. X. Layton
and J. A Chrisman. two saloonkeepers eft
Wellington, who are accused of selling in
toxicating beverages without having pro-
cured licenses.
'AfidaviT and testimony containing seri-
Gus reflections against at least one officer
OF the Merchants National bank were
considered by the grand jury yesterday.
Among the witnesses called were r. X.
Spencer. cashier of the National Bank of
Commerce: John Il. Qnick.s the druggist:
Deputy Treasurer Padden and Or. r.. Is.
NJ. Miller So -
II is understood that the speeifc charge
against the officer is that he knowingly
received deposits, or permitted their re-
ception at the bank. after IL had become
hopelessly insolvent AT the time the
bank failed there was considerable talk
against the officers. bnt this was confined
largely 10 depositcrs and while the mat
ter may possibly have been brought TO
the attention Of the prosecuting attorney,
1t never reached the courts until the mat
ter was brought 70 the attention of the
grand jury.
The Merchants National bank closed its
doors May q. 1885, On June 10 Charles II.
Baker was appointed receiver This was
after spirited contest in which the
names OF dozen prominent residents OF
Seattle We're mentioned. Among the ap-
phcants was George Hazard. for years
secretary of the Democratic state central
committee.
In its statement issued March 5. 1896 the
bank was shown 10 have deposits aggre-
eating upwards CT $500. coo. There were in
dividual deposits subject to check amount
Ing 10 sli0o 600. The bank was organized
by Angus Macintosh. W. II. Reeves and
Ms. Mary NJ. Miller. THIS was In 1889.
The capital stock first fixed at $50 COO was
later Increased 10 $4,000. and in 1852 to
500 0o0.
II is alleged by depositors OF the bank
that after the institution failed President
Macintosh disposed OF property TO the
value of $4,000. II has not been shown
that he was a debtor Of the bank except in
ndorsing notes for the bank as its presi-
dent
The suit brought against DR. p p. NJ.
Miller. who vas a DC postor OF the bkfnk.
and likewise one III IT, debtors Ess A. matter
Of record. Or. Miller deposited $500 IN the
bank a short time before /. failed His
note for 81 Geo was among its assets. When
the clearing house was called in 10 assist
the bank this note became the property
Of another bank. ana suit was brought 70.
enforce its collection. Later the note was
turned over 10 Receiver Baker.
Mr.. Quick was n depostor in the bank
TO the extent Of $50. Mr.. Spencer's value
as a witness before the grand Jury Is be-
heved TO lie in the fact that he was con-
versaut with It's affairs.