The Alaska citizen., 1911-02-22
Causes Leading Up to the Failure Of the Washington Alaska Told Of and Plan for Repayment of the Depositors ExpEaned-His Mexican Property is Pledged as
 Security for the Larger Depositors

l and purchased the same.
 The purchase of the First Ma tional bank, and that of the Wash. ington-Alaska bank. with the excep ton Of this option and bonus to MT. Wood, was explained to the board of directors. and passed on by them.
 Consolidation.
 The season of 1910 was not very profitable, and our directors thought it best to consolidate the Washing ton-Alaska bank and the Fairbanks Banking company. thereby reducing the expenses. This was done Octo- Der 1, 1910, the bank retaining the name of the Washington-AIaska bank
 Overdraft.
 The bank has required an over draft in Seattle during the winter every year, and for the past three years l have personally guarantee the same. Last year, when the First National bank. Washington Alaska bank and Fairbanks Banking company were under one control, vas personally on $700o0o of paper as guarantee.
 In the spring when gold dust begins to come in these oyer-drafts are taKen up and my guarantee re leased.
 As my holdings in Fairbanks and vicinity were small, and ',s l did not expect 10 return here during 1911 I considered it best for myself and the banks patrons f'r me to resign from the presidency. did so before l left Fairbanks. OctO- Der ?. 1910, but for some reason the board of directors did not act on it.
 During the last month or so dur ing 1910 that 1 was in Fairbanks | kept on urging Mr. Jackson to try and arrange the coming winter over draft in some way. so that l would not have 10 be solely responsible for ii. When,hCWeVer, l got to Seat tic l immediately went to the DeX- ter-Horton National bank and in formed them what I had done and in case they could not range it. guarantee. My guarantee was per fcctly satisfactory to them and shortly after that I went to Los An geles. My wire to MT Jackson that l did not want to go on the guar antee was sent because wanted them to secure it by their own efforts if possible.
 Mir. Jackson came to Seattle eX- D. cting to make arrangements, but was unable to do so. He then came to Los Angeles to see me. The DexterHorton National bank people informed MT. McCOrd my Seattle at tCrney, MT McGowan and Mr. Jack son. that if 1 came to Seattle and signed the guarantee the bank could have the OVer-dratt. MT. Yarnell also agreed 10 sign the guarantee with me. From my understanding with the DeXter-Horton National bank in the fall, thought all I had to do was to go to Seattle and sign the guarantee. On my arrival in Seattle l found that Mr. McCGrd was in Spokane, and, as l wanted him 10 pass on the guarantee, Iwait- ed until his return, which was three days later. We then went to the DeXterHOrton National bank and said we were ready to sign up for the over-draft They then said that tutlS NdS SDiIit uIttI, anu, Hullt they were not absolutely sure, their legal advisor thought a guarantee for an over-draft for more than the paid-up capital stock would not be binding. They said they would give us positive answer the next day us a positive answer the next day We returned the next day and they then informed us that such was the case. and they could not let us have it.
 We then tried the National Bank of Commerce, and MT. Backus in formed Us that, while he considered the guarantee ample, they were not in a position to carry it, as they were loaned up close to the limit. We then went to San Francisco and tried to arrange with the Wells Fargo Nevada National and the Bank of California, but were unable 10 secure the required over-draft.
 In all of these places We offered to place bank collateral to the amount of as much, or more, than the amount asked for in any ones hands they should designate. and besides, 1 agreed to sign notes for the sum of $350OOO which was the amount asked for, as additional security.
 As last endeavor Mir. Jackson and MT. McCord went to the Dex- ter-Horton National bank and offer ed to put up my Mexico holdings as security, but were still refused. Their excuse was that they could not accept any of these as guaran- tee over the amount of paid-up capital stock of the bank.
 The following is my telegram to Mir. McCord regarding the S50,000 made so much of in the papers here. According to cur talk" means that when we left for San Francisco I told MT. McCord that if we could not secure the over-draft there we would be compelled to close, and I decided to take loss pro rata with all de- positors on that basis.
 Los Angeles, Jan. 3, 1911. E. s. McCord, care Kerr & McCord,
 Seattle, Wash.
 Place your credit here tomorrow Farmers Merchants National bank 1000 according our talk. As soon Jackson wires bank to ask for re- ceiver you notify McGowan & Clark inform directors my intention to pro rata regards $2OO,00O No word Jack son. You wire me what done care above bank.
 (Sipnad) F T RARNETTE"