The Midnight Raid on a Spokane Dry-Goods Store
A trust deed meant to shield Lewenberg Bros.' assets lasted less than a day before banks and out-of-state suppliers sent deputies and lawyers after the goods.
On January 2 the firm of Lewenberg Bros., Spokane, transferred its entire stock of merchandise, the Lewenberg building—occupied by the Louvre Theater at Front and Howard streets—and some eight residence lots in various parts of the city to J. N. Glover, as trustee for Portland parties. The next night, after Glover had taken possession, four deputy sheriffs broke into the store and levied on the goods under three attachments. Two were issued by the National Bank of the Republic of Boston, for $1,000 and $4,000 respectively, claimed to have been loaned to the firm. The other was issued for Frederick Vietor & Achelis Co., the big New York dry-goods concern, for $1,241.59. The total amount levied was reported at about $6,141.
Later in the night a writ of replevin was obtained by the Woonsocket Rubber Company of Providence, R.I., and Portland, Or., to secure the return of goods. E. Ephraim, general agent of the latter company, said he would endeavor to show that the goods were obtained when his company had no knowledge of the claims for which the trust deed was executed, and that if the company had known of their existence the goods would not have been delivered. The trust deed to Mr. Glover listed claims in favor of the First National Bank of Portland, Merchants' National Bank of Portland, London and San Francisco Bank, Julius Lewenberg as trustee of the estate of Abraham Lewenberg, and the National Bank of Spokane, among others.
“The next night, after Glover had taken possession, four deputy sheriffs broke into the store and levied on the goods under three attachments.”
Spokane in 1895 was a young railroad city where a single firm's collapse could set banks and out-of-state suppliers racing to court. The night raid on Lewenberg Bros.' store shows how quickly a trust deed—an early form of secured creditor protection—could be undone by rival claims. Modern bankruptcy and receivership fights still turn on the same question: who gets to the assets first, and who is left holding the paper?
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