The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-06-07

Details Of the failure Of The Flint Bank
Of Skagway" reached the city yesterday on
the steamer Laurada. According 10 the
Alaskan Press the failure was anticipated
BY many, - II had been believed for some
time that tho bank was doing business
with no capital 10 support 1t. The nrss
public intimastcn had Of the failure was
notice posted on the doors os the bank on
the morning OF May %, which read a. fol-
lows:
Notice b hereby given that on the 18th Il
MAJ. isse. ct Junssu, in tAs District u Alaska.
me United States court ieaxd It's order app.snt
me lsop<ry ia the District II ALASKA at the
Frst BANK II sk~sway. and that under such
order ] have taken aud nos bold possession u
u O. PRICE. Receiver"
The notice attracted much attention and
II II said that those who lost money by
reason Of the failure were loud in their
condemnation OF the bank officials.
There were also number Of pathetic
cases where men and women claimed 10
have had all their little savings in there.
savings that mean; everything to them and
the loss Of which left them stranded and
hopeless.
The bank was organized In 1897 as
etock company with capital stock or
Is go, OF which not more than t25oe has
ever been paid In. Among the incorpora-
tors are c. 8. Moody. who was president
George Bullen. Thomas Aldrich, Norman
s. Smith, George 1. Williams, OF Victoria,
Thomas Word. Fred La Pennouerc and
three Others from Portland. Or. whose
names could not be ascertained yesterday.
The bank was incorporated under the laws
OF Oregon. which makes every one of the
stockholders responsible for the liabilities
OF the concern, so that II Ia now contested
that IL these stockholders are individually
or collectively responsible. the creditors
and depositors Of the bank viii not lose
anything.
According to the Daily Alaskan there
had been much Internal friction among the
stockholders In view Of the fact that the
business has been growing worse and worse
for the last few months. Mr.. Moody went
10 juneau and started q suit against the
other stockholders TO compel them To pay
up their several stock proportions in order
TO meet the shortages OF the bank While
filing this suit be incidentally asked Judge
Johnson 10 appoint a receiver pending
settlement Of the question at Issue with
pointed and gave bond. He at once took
charge OF the property OF the bank and
will put an expert bookkeeper at work
on the books and prepare detailed re-
port OF the affairs OF the bank. which he
has promised TO submit 10 Judge Johnson
June TO-
The bank has been losing credit for
nearly year past. ever since the bank
was accused of harboring the sack con-
tanning 1900 worth Of gold dust stolen
by members Of the Soapy Smith gang from
ullUSf last JQiy Huu WHICH tSu 10 ctilitu >
death. While this charge was denied and
never proven. the report OF il affected the
credit Of the bank and reached the Seattle
bankers. who from thence forward refused
all further credit. Skasway business was
affected by IL, and the advent Of the Cana
dian Bank OF Commerce at once changed
the business from the American TO the
Canadian bank
Receiver Price said that all Information
touching the affairs OF the bank was as
yet very meager. He believed that the
statement that Mr.. Moody mad maze 10
the court was substantially trus- The Lin.
biiities would be close 10 $500, while the
assets would run something over SIS 80.
Mr.. Moody had estimated that out OF the
assets enough could be realized from bills
oyerdrafts, notes accounts and casn to
average about so per rsn.. Oh he -,olla~
To the depositors There were some ass. Is
on the dollar. so that he considered the
failure not as bad as bank failures usually
gss. The chances. he saPi. were very IA
vorabte from matters connected with tho
affairs OF the bank thai there would Re
about eco available within the next thir
~ days. SO that s@ thought by that tim.
there would be dividend of Is per cent.
available for the deno~Itors. Mr. Price
did rot state this officially. nj, based hir
and which he had every reason 10 believe
were correct.
In conclusion Mr.. Price said that IL the
stockholders would only pay 80 per cent.
of their stock that every dollar OF In
tebtedness could be net and leave the
bank good surplus
On May 81 n meeting OF the banks cred
itors was held, they having retained n
lawyer and combined 10 protect their in.