BANKING.
My connection with the banking business in Puyallup was neither a
venture nor an adventure, in the common acceptance of the meaning of
these words, and to this day I can scarcely account for my action. I
am sure that I was not "cut out" for a banker, and the business had
no attraction for me. I did want to see a national bank established in
Puyallup, and so took $10,000.00 of the stock, became a member of the
directory, and committed the grave indiscretion of letting others "run
the bank" without giving it personal attention.
In the lapse of time parties controlling a majority of the stock "run
it into the ground," to use a western phrase, that is, loaned to their
cousins and their aunts, to themselves indirectly, and to others
indiscreetly, until matters looked shaky. Suddenly "business" called
these parties to other and more attractive fields, and lo, and behold,
I became a bank president.
This was just before the time of the panic, and the question of what
was to become of the bank became one of the utmost concern. The notes
were nearly all hypothecated to secure loans from other banks, while
the tightening times caused the deposits to run down; the securities
could not be realized upon, and the banks holding them called for
their loans. The depositors, about one hundred in number, were
all my neighbors, and men and women of small means. One thing was
certain—could not continue to receive deposits with the knowledge I
had of the affairs of the bank, either with safety to myself or the
depositors. So one day when the deposits had run to a very low ebb,
and the cash balance correspondingly low, and a threatening demand had
been made by one of the secured banks, it was evident the time had
come when the bank must go into the hands of a receiver and what money
was on hand to be frittered away in receiver's fees, or pay out the
money on hand to the depositors, and let the creditor banks collect
on their collaterals. It was impracticable to pay depositors in part,
or part of them in full. October 16th, 1895, on my own responsibility
I obtained enough, with the funds of the bank in hand, to pay the
depositors in full. An attorney for one of the secured creditors of
the bank suspected what was going on, and believing the money was on
my person undertook to detain me in an office in Tacoma until papers
could be gotten out and served. But he was too late, as A. R. Herlig,
my attorney, was already in Puyallup with the funds, with directions
to take all the funds of the bank at nightfall, and with the cashier,
George Macklin, now of Portland, go to each depositor, and without
explanation insist on their taking the money due them. Charles Hood,
of Puyallup, and, I think, John P. Hartman, now of Seattle, was of the
party. Two trusted men with guns were sent along to guard the funds.
In fact, all carried guns, and so the story went out that the bank had
sent each depositor what was due him, and sent men along with guns to
make him take it. This became an alleged witticism for a long time in
Puyallup, but finally wore itself out. The result was that before four
o'clock next morning all the depositors were paid, except four, who
could not be found, and the next day the bank was open just the same as
if nothing had happened, but all deposits were refused. The attempted
holdup in Tacoma, resulted in nothing more serious than a scuffle, the
loss of a collar button or two, with plenty of threats, but no action.
I took the train for Puyallup, went to bed at the usual hour, and slept
soundly, as I always do.
As expected, in a few days a bank examiner came to take possession
of the bank, having received direct orders from Washington from Mr.
Eckles, the comptroller. In a week he was willing to quit, and asked
that the bank should be turned over to the directors, and was ordered
to do so. The affairs of the bank were closed up without litigation,
but the capital was gone, and all that was left was the furniture and
the charter, which is held to be valid to this day, and so it would
seem I am yet the president of the First National Bank of Puyallup, and
have been for nearly twenty years.
A few years ago the late Charles Fogg, of Tacoma, acting as an attorney
for a group of capitalists, undertook to marshal the scattered and
really worthless stock with a view to rehabilitate the bank and save
the name, but were met by some obstinate stockholders who refused to
either co-operate or dispose of their holdings and so the bank sleeps
though not dead. Possibly when the "Rip Van Winkle sleep" has lapsed
and when the little city of Puyallup has reached the twenty-thousand
mark of inhabitants and one or two more of the recalcitrant
stockholders die (one of the chief obstructionists died since the
attempt was made), the bank may reappear as one of the institutions of
the rising city of Puyallup.