The San Francisco call., 1901-11-20
TACOMA BANK
FAILS To OPEN
Scared Depositors Begin
a "Run" on the Met
ropolitan.
George Vanderbilt Loses in
Financial Operations
on the Sound.
Special Dispatch to III. Call

TACOMA, Nov. 19.-The Metropolitan
Bank failed TO open for business this
morning. The bank experienced a heavy
run yesterday, caused by a suit brought
for the appointment OF a receiver for the
Metropolitan Savings Bank, which went
into liquidation in May. 1898. Small stock
holders confused the names OF the two
banks and believed that legal trouble
threatened the Metropolitan. Some began
withdrawing their funds on Saturday and
yesterday the run" became general Be-
tween $50, 600 and $50 900 was paid out dur
ing the day TO small depositors. Business
firms did not become alarmed because
they were assured by President Caesar
that the bank had sufficient convertible
assets to provide funds for any ordinary
eXigency.
The clearinghouse banks yesterday
provided the Metropolitan with 50,000 in
gold. taking in return its best securities.
The clearinghouse met last night and de-
cided not to supply further funds unless
the bank itself could obtain a certain
sum by this morning
President Caesar is a nephew Of William
X and George Vanderbilt and has other
influential Eastern connections. He ap-
parently expected last night to obtain
money from this source, but failed. The
bank accordingly did not open and on ap-
money-lender. was appointed receiver by
Judge Chapman.
Cause of the Failure.
No statement of the banks condition
has been made. Its capital stock is $50 900
and the deposits nearly $500 900. Part of
its assets comprise notes and real estate
security which other banks did not be-
lieVe could be realized upon quickly. Es-
Inmates Of the amount it will pay out
through the receivership vary from 80 to
SO per cent.
The failure of the bank is directly due
10 the liquidation of the old Metropolitan
ing the summer of 1898. E5e became inter
ested in this bank through a loan on the
bank s building and eventually acquired
a controlling interest. Vanderbilt finally
decided TO close the bank and sent Charles
McNamee of North Carolina, his conf
Dental business agent here. to carry out
the liquidation plan Vanderbilt advanced
money to pay every depositOr in full. Only
four claims remained unsettled, the chief
one being a note for $4,000 pledged as Sc
curity TO the New York National Ex-
change Bank. This bank at first declined
TO accept settlement offered by McNamee.
but in November Of last year accepted
such settlement in the sum of 5000 ac-
cording TO allegations Of the officers of
The bank was dissatisfied with this and
on Friday last began suit in the Superior
Court for collection of the full amount
on a judgment obtained last August In
This suit il is alleged that the debts of
rne metropolitan Savings Bank were $780,
600 in excess of its assets and requested
the appointment of a receiver.
Vanderbilt Loses Heavily.
Philip Caesar and T w. Enos were
president and vice president of the Metro
politan Savings Bank. On the day the
announcement was made that the bank
would 90 into liquidation they opened the
Metropolitan Bank, themselves being the
chief stockholders. 1t is understood that
George Vanderbilt paid them S50000 for
permitting him to liquidate the old bank.
bank. 1t cost George Vanderbilt S206 900
to nouidate the Metropolitan Savings
Bank and close out the other Tacoma
property. Through the bank he obtained
ownership Of the Tacoma Theater, which
had been mortgaged to an Eastern insur-
ance company for large sum. He gave
the insurance company a quit claim deed
TO his interest. and by this transaction
lost SCI, 900.
Both Vanderbilt and McNamee were
6isgusted with their banking experience
here. The property on which Nanderbilt's
losses occurred was acquired on loans
made before Caesar became president.
His predecessor in that Office was Linus
E Post. who suddenly disappeared in 1885
owing the bank a large sum. and has
never been heard from since.
James LIE Baron Johnson, who created 2
rope with Miss Mary Hoffman of San
tan Savings Bank for several years be-
fore returning TO New York to study the
ology under Rector Huntington of Grace
Church