The Garden Island. [volume] (Lihue, Kauai, H.T.) 1902-current, 1922-05-02
Kauai Bank Forced
Into Receivers
Hands Last Week

Following a somewhat stormy and
checkered career of about two
years duration. the Kauai branch
of the Hawaii Bank Of Commerce.
formerly the Bank Of Kauai, clos
ed its doors Thusday morning. And
it closed then so hard and tight
that the bang caused its mother in.
stitution in Honolulu to shut up
shop too.
The Bank of Kapaa was founded
by the people who so ursuccessful-
ly guided the affairs of me Peo-
pies Bank of Hilo. Somewhat o7er
two years ago, Herbert Truslow.
| then cashier of the Peoples ';nnk
Fred Patterson, formerly of Kauai
and Senator James Russell also
connected with the bank and with
the Security Trust Co., visited the
Garden Island to interest local cap
ital in a new bank on this island
good many men, mostly those
with somewhat limited capital.
bought stock in the enterprise. A
number of others who had consid-
cred the proposition baked when
they found that the control of the
place would really be in Hilo, not
in the hands of local business men.
The institution was started under
favorable auspices. 1t was the time
of high sugar and high bonuses. The
first hundred thousand dollars de-
posits was reached in a remarkably
short time. Business seemed to be
very flourishing and the bank, as
many other institutions the country
over, expanded quickly. 1t erected
its own building. Soon it also put
up building for drug store, a
clothing store and doctors office.
The bank advanced considerable
money for the furnishing of the var
ious stores.
1t was not very long until the
| clothing store proved a losing prop
osition. The proprietor left and the
bank held the bag. The drug store
managed to keep going for much
longer time. The proprietor left
Kauai only a few months ago to
work in one of the Honolulu drug
stores. But he left clerk in charge
and attempted to keep the store
open. But, it too, was forced to close
its doors a few weeks ago and again
the bank was somewhat "poho."
AT the time of the opening of the
, Hawaii Bank of Commerce about
| three and a half months ago, the
| Kauai bank was turned over to
that institution. The Peoples Bank
| of Hilo is said to have sold its in
terest in the local institution to the
Hawaii Bank of Commerce at par.
But there were good many loans
that could not be collected The
value of the bank property and of
other buildings erected had decided
ly deprecated Altogether a loss of
about $4,000 was sustained by the
Honolulu institution in taking over
the Kauai bank
The loss caused is the greatest
cause of the closing of the Hawaii
Bank of Commerce and the Com
mercial Trust CO., according to Del
bert e. Metzger, president and man.
ager. But there are hopes for re.
organization as the assets of the
| companies are said to be about S75,-
600 in excess of the liabilities.
The Waterhouse Trust Co., has
been appointed as the receiver for
the two institutions and for the Ka.
uai branch of the bank. While there
is possibility of a reopening of
all institutions, the Strengthening out
of the affairs will take some time
and it is not a certainty that they
will be permitted to reopen. But
the excess assets are a fairly certain
guarantee that the depositors OF the
banks will receive all their money
back at some future date.
The first cashier of the Bank of
Kauai was Karl b. Morgan, the sec.
ond Walter " Lee. The cashier of
the bank after it was made a branch
of the Hawaii Bank of Commerce
was X. M. Ahana. The directors of
the Hawaii Bank of Commerce are
j. f. Rice, III. A. Asch. ID. e. Metzger.
X. c. Ahana and Manuel Aguiar Jr.