The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1921-11-09

dlnavian American bank. has out.
lined a plan OF settling with the de-
posltors OF said dcfunct hank. that
We. the undersigned depoaitora, vig.
orously object TO. for the following
reasons;
'sFirst--Recausc In several news
paper articles, IL has been promised
that the deposltors would be paid In
FUN. and Gov. Hart. In widely pub
lished speech. said specifically that
the bankers had adopted his plan. or
suggestion. for paying these deposit
ors and he could give them his posi-.
tive word that no deposltor would
lose a dollar. This statement must
have been accepted by the bankers
as Il certainly was never contradict
ed in print"
Stacy = -Gov. Harris state
ment was made only two weeks
after the bank had closed, nj
time when ID WAS Impossible To
make an accurate survey ~ the
situation. Gov. Hart made the
statement In good faith, but after
careful inves igation over pc
riod of four months. committees
Of Seattle and country bankers
have determined that the bank
has not enough assets TO pay the
dcs,ositor~ In full
second because no official state.
mcnt has been issued as to the ac'
tuai assets OF this defunct bank that
are left. and which these new banks
are willing TO bid s.. 400. 600 for. II
they know what they are bidding on.
why do not the depositors kpowy
II is their money. who has better
right TO know the amount Of these
assets than the depooiiorr. 10 whom
they actually beiongg Mr.. Stacy
says the amount OF Indebtedness
cannot be determined. Why mott Il
Il because some dcpositors may have
died and viii not call for their
money! The 10000 that the bank
VIII add 10 lta bid would not 20 far
toward paving off perhaps millions
OF indebtedness that may stu be
owing. What was the amount OF
this liability Why were the de-
posisors never notified 81 It's
amounsy''
Stscy-'sThe assets consist of
notes. bonds. warrants. r~wi ~
tate contracts. rial estate loans.
scattered pieces OF rial e~tates
four ships. etc. The banker
have spent four months trying
10 r~arh an accurate apprxkAi
II these iteuss-to find out how
much money can be collected an
them In a short period Maui
testify. the dcpositors could not
obtain this information any
moro readily than these commit
tees Of banksr~--and the most
definite conclusion that they
have becn able 10 reach u the
fact that Il IL safe for tho new
bank 10 pay 90 CENTS on the dol.
lar n soon - u opens. Further.
more. every cent that 10 collect
ed above 500. 900 win BE- paid
to the d~po~itors WITHOUT
COST TO THEM NJ soon ~ u
can be collected. and under the
supervision Of the state banking
department.. AZ Ia the reason
Why they cannot determine the
amount Of indebtedness. th<re
arc certain lawsuits pending
against tho bank. and the liAhil
ities win BE- dceidcd by the usit .
come II these sulfs. A bank
cannot notify liz dcpositors 81
every suis that h flied against
Il.
'-rhird--why should the state
banks be relieved Of their liability
when on every check Issued by this
defunct bank vas this assurance 20
all depositors. Deposits guaranteed
by Washington Bank DeposItors'
Guarantee fund.- What did this
guarantee mean to these depositcrsr
DID II mean what II said or was n
only the advertisement Of a lot Of
financial sharks and used merely 10
trap the unwnryg"
Stney--The question Of
whether the state hanks are
liable h 10 be submitted % the
supreme court In the near future
and that tribunal will dccBdc.
And you must remember that the
guaranty banks. under this plan,
ara putting up $i..J0, 900 for the
new bank. II b also well TO bear
n mind that many Of the Dr.
funct banks assets arc pieces of
real estate. ships. etc. whirh We
cannot hope 10 sell now without
heavy loss 10 the depo>itors
The other banks money viii be
used 10 pay depositors In the
meantime"
"FoURTH-we would like 10
know who are the preferred claim.
ants II not the deposItors. and who
gets this 80 per cent that goes 10
pay general indebtedness We can
see no promise tn the deposiiors 10
nav any certain n -~euta re a "A 49,