The Alaska citizen., 1911-04-03

matter Cf the failure of the Wash gton-Alaska bank had been dis cussed at much length by Dr. Aline Bradley, resolution was pre- scented and adopted This in effect charges that the bank was footed between October 1, 1910, and January 1. 1911. by the officers and owners of the bank; that the re- cent grand jury refused or neglect ed 10 examine into it's affairs: and that F.. C. Hawkins is not fit per son to act as receiver and should be removed. It also urges the court 10 call another grand jury: ex- presses an abiding faith in the abil- ity and fidelity of the court and district attorney. and asks for the appointment cf an accountant to ex- anime the books.
 Dr. Bradley called the meeting to order and nominated Miner Bruce as chairman. Miss Cambridge was asked to act as secretary. Dr. Brad ley then went into the details of the transactions of the depositors' committee with Captain Barnette and gave her account of the banks history since the consolidation The matter Ol lut uINlUeuu uttidltu Ill April was taken up and then the doctor called attention to the with drawals made by Barnette.
 During the five months preced- ing the purchase" she said, Bar nette had been systematically draw ing out his money from the bank Checks issued during this time were: March, s45,OOO; May, sl3,000; June, s69, ,000; July, s+7,000; August s14S,- 900, and September 2,0OO, or a total of s3i5,OOO
 IL was during the month of Sep tember, 1909, that the Washington Alaska lank was bought with the money of the depositors of the Fair, banks bank, for it had no money Of it's own, good part of its capita stock never having been paid in From February, 1910, to October 1, 1910, Barnette closed out his aC- count, having drawn down during that time S294,S90 In addition. tive gold bricks valued al S43 .OO0. which did not go through the bank a all, were shipped to Mrs Barnette Since that time the sum 0; SiO,- 900 has been raise4 by lesson OF the Circle property and turned over to Mrs. Barnette. This makes a total of s731 900 taken out by Bar nette in two years. And the am1un is even greater, for no checks less than s4,000 were listed in making up the totals"
 Against the moneys drawn ou by Barnette there were credits to him by the old Fairbanks Banking company of s200,000 and the Gold Bar Lumber company stock credits of s3i1 900. In this continual check ing out and i'll unloading of stock the depositors had evidence of con spiraCy 10 defraud them"
 Referring to tie securities the speaker said that these were re fused by the committee Tot so much cn account of lack of considera- tion as through suspicion of Bar nette. She said Barnette was play ing for time in the hope of binding the grand jury. And he accom- plished his end, for the securities were rendered the receivers of the bank and accepted and the grand jury failed to indict."
 The doctor then attacked Attor- ney Pratt for allowing the Robarts attachment case to go by default, stating that all of the depositors were dissatisfied to think that the attorney they were paying $500 a month had allowed the action to go through, even though it might be legal.
 Referring to the condition of the bank the speaker stated 1t as her belief that not another cent would ever be paid to the depositors.
 Following is the resolution adopt ed by the meeting:
 Whereas in the month of Sep tember, 1909, the Washington-Alas- ka bank, corporation organized under the laws of the state of Washington, was doing business in the city of Fairbanks, Fourth d- vision of Alaska, at it's place of business therein, and upon that month the officers and directors thereof and owners of the stock thereof sold and transferred their said stock to the Fairbanks Bank ing company, corporation organ ized under the laws of the state of Nevada, and to one E. T. Bar nette and his associates, who owned and controlled the said Fairbanks Banking company. The consideration for that sale is reported to be the sum of s25O,000, of which $150,000 was the par value of the stock of the Washington-Alaska bank, and the remaining s100,000 was a bonus for the good will of said Washing tCn-Alaska bank and was appropri- ated by one w. H. Parsons and his immediate associates for their own use. At the time of said sale, the Fairbanks Banking company was insolvent and the Washingt on-Alas ka bank was no more than sol vent. The mining camp, of which the town of Fairbanks is a center, was declining. The Fairbanks Banking company, at that time, had on hand the sum of $3O2,602. IA, which said sum, after the purchase of the stock of the Washington Alaska bank and the payment of said bonus, left but the sum of $52,6O214. From the time of the acquisition of the said Washington Ala.ka bank by the Fairbanks Bank ing company and its officers, the Washington-Alaska bank continued it's business under it's own corpor- ate name, but under the manage ment and direction of E. T. Bar nette, his associates and dummies, until on or about the first day of October, 1910, during which time the Washington-Alaska bank re- mained in a solvent condition save whatever losses, if any, may have been incurred by reason of actual