The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1921-09-27
new BANK
PLANS ARE
PERFECTED
Institution Win Take Over
Assets OF Defunct Scam
dinavian American

uli1dNidfl AIittt lCdti
After II weeks Of diligcnt
work on the part Of COMMITTEES
representing more than 100 state
banks. Il was announced today
that plans have been perfected
for establishing In Seattle the
Rank Of Washington. the instt-
tuition 10 open It's doors probably
before the end Of The year.
It win take over the assets OF
the dcfunct Scandinavian Amcri-
can. simultaneously another
hank. 20 be called the Bank OF
ballard, with the same stock.
hoidcr~, will replace the Ballard
branch of the failed Scandina-
Wan.
Both institutions. agErcgating a
capital and surplus OF 81 $50 900, viii
be owned by the small state banks
that are now members OF tho guar
anty fund. and viii be their Seattle
correspondent
Under tho organization plan. tho
many thousands Of depositors OF tho
old scandinavian with accounts OF
500 or less will be paid 100 cents on
the dollar Immediately upon the new
institutions opening It's doors The
larger accounts viii be paid 90 cents
on the dollar, and will share IN later
dividends as the assets are liquidAt.
ed. The costs OF liquidation. outside
of legal expenses. viii be borne BY
the new bank. instead OF BY the de-
posifors In the old.
eEATTI.E MEN PASS
IN BANK ASSETS
This arrangement was decided up
ON by the reorganization committee
and state banking officials. following
= report on the assets. which was
made BY a committee OF Seattle bank
err These men. ID. II. Moss. J. T.
Mcvay. +. IL. Luce and J. A. swal-
well, worked a month. much OF that
time evenings as well a. days. going
over the papers.
Tho new bank will start business
with an exceptionally large cash re
serve. without owning any real e.
tats and with no other fixed assets
than furniture.
Quarters have not yet been deter.
mined upon. but II Is said that sew
erai suitable locations in the hank.
tnx center are available.
Ralph s. Stacy Is 10 be president
Of the Institution.
The plan win leave the state
xuaranty fund intact. and as no
large hanks are now members % the
system. the 100 and more small In
stitutions will be given ample pro
lection. Il IL said. Thus what had
looked like the complete destruction
Of the guaranty system IL avertsd.
Test eases viii be started In the
superior court and carried into the
supreme court to bring about de
cis,on on various legal points In
vofved
The reorganization committee con-
sists Of r. w Shultx. wenatehsc. r.
Lee Barnes. Ellensburg: c. w. Bridg-
ham. Eluia: G. Paul Uhlman. Gen.
fraiia. and Conner Maiott Spokane.
The memher- had the cooperation OF
John r. Duke. state hank commits
sioner. In drafting the program.
STATEMENT MADE
BY COMMITTEE
During the past few weeks the
committes OF country bankers In
ferested In forming a new bank to
take care OF the depositors Of the
scandinavian American bank, notice
Of which was published In this pa
por Mt that time, have been work
ing with another committee OF Sc
attic bankers 10 ascef tain the value
OF the assets of the old bank" said
the organization committees state
msnt
sThis work was completed last
Friday. and the organization com
miftee Is today sending out notices
10 more than 100 country banks
asking for tho frs, payment on tho
capital stock OF two new banks,
which has been subscribed for some
weeks past; the parent bank down
town, with a capital. surplus and
profits OF si.15o.ooo. and the other
bank Mt Ballard. with capital. EUR
plus and profits Of 500. 900. both 70
be owned by the same stockholders
In the same proportion.
These new banks win agree 20
pay deporitors OF the Scandinavian
American bank having 500 or less.
In full. and depositors having more
than that amount at so cents on
tho dollar at once. when they open
for business--no deferred payments.
THE balance due the depositors
will be paid so far and as fast as
II can be collected out Of the assets
Of the old bank. and collections will
be made by the new banks without
cost to the depositors. thus saving
tho expense OF liquidation. and un.
der supervision OF the state banking
department. so that the depositors
may be certain Of receiving square
deal.
Tho plan VIII go into effect as
soon as the necessary court pro
ceedings can be taken. 10 has the
approval Of the state officials. and
win give the depositors their money
much more quickly than IL the old
bank continued in liquidation"