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GREAT FALLS, Mont., October 5.Doors of the Commercial National Bank here did not open this morning, suspension having been announced last night by the board of directors. The suspension announcement gave the bank's deposits as $1,202,000 and its loans $1,505,000.
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Great Falls, Mont., Bank Suspends Great Falls, Mont., Oct. 5. Doors of the Commercial National Bank here did not open this morning. suspension having been announced last might by the Board of Directors. The suspension announcement gave the bank's deposits as $1,202,000 and \ its loans $1 505,000.
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Great Falls, Mont.. Oct. 5.-Doors of the commercial National Bank here did not open this morning, suspension having been announced last night by the board of directors. The suspension announcement gave the banks deposits as $1,202,000 and its loans at $1,505,000.
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GREAT FALLS, Mont., Oct. 5.-Doors of the Commercial National Bank here did not open this morning, suspension having been announced last night by the board of directors. The suspension announcement gave the bank's deposits as $1,202,000 and its loans $1,505,000.
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Great Falls, Mont., Oct. 6.-Doors of the Commercial National Bank here did not open, suspension having been announced by the doard of directors. The suspension announcement gave the bank's deposits as $1,202,000 and it. loans $1,505,000.
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GREAT FALLS, MONT., Oct. 5.Doors of the Commercial Nationa Bank here did not open this morning. suspension having been announced last night by the board of directors. The suspension announcement gave the bank's deposits as $1,202,000 and its loans $1,505,000.
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Great Falls, 'Mont.-Doors of the Commercial National bank here have closed. The suspension announce. ment gave the bank's deposits as $1,202,000 and its loans at $1,505,000.
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Great Falls, Mont.-Doors of the Commercial National bank here have closed. The suspension announcement gave the bank's deposits as $1,202,000 and its loans at $1,505,000.
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County Funds Protected By Bonds That Cascade county will lose no money nor be deprived of its use for any length of time, through the recent failures of banks in which county deposits were carried is the statement of Fred C. Andretta, county treasurer. In the case of the Commercial National Bank of Great Falls, which at the date of closing carried a county deposit of $50,611, the county was fully protected by a surety bond for $34,000 and by stock of the Montana Power company assigned over to the county treasurer as collateral for the balance of $15,611. It has been stated that personal bonds of officers of the bank had been given in this case. The State bank here and the Miners State bank at Sand Coulee had deposits of county funds in the following amounts; the State Bank of Belt had $10,000 on deposit insured in the American Surety Co., of New York; the Miners State Bank of Sand Coulee had $7,800 on deposit secured by a Surety bond in the amount of $8,000 in the American Surety Company of New York. In the even that any of the banks reopen for business, which is highly probable according to rumor; Mr. Andretta states that with suitable security the amounts will immediately be replaced in the banks upon the proper guarantees being submitted to the county treasurer.
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NATIONAL BANK ASKS RECEIVER APPOINTED BE Quickest Seeks Examiner Means for Aiding Reorganization. a Request for the appointment of receiver for the Commercial National bank of Great Falls, which suspended October 4, was made of the comptroller of the currency Tuesday by F. D. Williams, federal examiner in charge. The action was taken, it was announced, as a means of facilitating the reorganization and reopening of the bank pursuant to plans that have been followed since the suspension was decided upon by the board of directors. Through the application of personal funds of the stockholders, it has been thought probable that the bank would reopen before the holidays, but this plan has been interrupted by the position taken by a few of the minor share owners, according to different of the stockholders. Under the reorganization plan contemplated, all of the share owners would immediately pay their liability on their stock, but payment is not compulsory except through demand made by a duly appointed receiver and three or four stockholders are said to have declined to recognize the obligation until such an official is in charge of the bank's affairs. Repeated conferences between the stockholders failed to bring about a change in the attitude of the few who asked that a receiver be named before the stock liability is paid, it was stated, and Examiner Williams filed his request for a receiver after discussing the situation with the board of directors. Plans for reopening the bank are far advanced, according to different of the directors, and it was asserted that after the receiver is placed in charge matters will move rapidly towards resumption of business. The receiver will be appointed by D. R. Crissinger, comptroller of the currency. but until the appointee is named his identity will not be known here. It is considered certain that the comptroller will follow his usual policy of naming somebody from his official staff. It is thought possible that V. M. Smith, who was receiver of a bank at Poplar prior to its recent reopening, will be placed in charge while the reorganization plans are being worked out.
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WILLIAMS IS RECEIVER OF COMMERCIAL Federal Examiner Named to Act Pending Working Out of Reopening Plans. F. D. Williams, federal examiner in charge of the Commercial National bank of Great Falls since that concern suspended early last month, Monday was named receiver of the bank by D. R. Crissinger, comptroller of the currency. Mr. Williams' commission is effective at once and he will immediately take over the management of the bank pending the working out of reopening plans by the stockholders. Will Collect Stock Liability Because of circumstances preceding Mr. Williams' recommendation to the comptroller that a receiver be appointed, it is generally expected that he will at an early date make demand upon all stockholders for payment of their stock liability. Plans under way with the stockholders to reorganize the bank were interrupted by the refusal of a few minor share owners to pay their stock liability until a receiver was named. Other plans for refinancing the bank are well advanced, it has been stated, and early development in the work in progress is expected by those closely in touch with the bank's' affairs. Detailed announcement of the refinancing methods contemplated has not been made, but it has been stated on reliable authority that the banks expects to reopen with its affairs in good condition. Government Will Help Mr. Williams said after his appointment that it always is the government's policy to give all possible assistance in the reorganization of a closed bank. Mr. Williams is a permanent member of the comptroller's corps of examiners and once before has served as a bank receiver in Montana. This was at Butte, where he liquidated a savings bank following its suspension. Much of the work looking to reopening of the Commercial bank is in the charge of J. C. Peters, chairman of the board of directors, who is expected home today from a business trip to Chicago, where he was called in connection with his oil interests.
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ANOTHER BANK ASKS RECEIVER Receiver for the Commercial National Bank of Great Falls, which suspended October 4th, has been asked of the comptroller by F. D. Williams, federal examiner, and it is understood that V. M. Smith, who was receival of the First National Bank of Poplar, will be appointed. Miss Constance Duckstad, one of our city school teachers, spent Thanksgiving with her parents at Columbus, N. D.
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PROSPERITY DUE WITH BUSINESS BOOM STARTED Commercial Bank Reopening Proceeding Rapidly, Says Peters. The optimism with which Montana is looking ahead to the new year is fully justified as viewed in connection with the general trend of the business situation in the east, it was stated Tuesday by Julius C. Peters, president of the Homestake Oil company and chairman of the board of directors of the Commercial National bank, following his return from a trp to Chicago, New York and Washington. "Business is decidedly on the upgrade in the east," said Mr. Peters, "and there is confidence everywhere that the next year will seek marked progress made in many branches of industry. One of the signs considered to be favorable is an apparent clarifying of the European situation as it affects foreign buying. There is strong hope that Germany will be in position during the next year to make large purchases in the United States, which with improved markets in other countries would mean a better demand for America's surplus grains and metals." Mr. Peters stated that work looking to the reopening of the Commercial bank, which suspended October 4, is progressing to the entire satisfaction of the board of directors and that the bank will resume business early in the spring. "So far as outside financing is concerned, the work is completed," said Mr. Peters. "When the stock assessment has been paid and we have made necessary arrangements with the depositors, we will be ready to resume without further delay. The comptroller of the currency assured me of full co-operation and the eastern creditors have shown the finest possible spirit. "It is my understanding that the comptroller will ask that the stockholders pay their assessments within 90 days, which would leave this portion of the organization work completed by April 1. It is very probable that by that time we will have completed satisfactory arrangements with the depositors and it should take little time after April 1 to reopen." Mr. Peters arrived from the east Tuesday morning.
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NOTICE Treasury department, office of the comptroller of the currency, Washington, D. C., December 29, 1922. Notice is hereby given to all persons who may have claims against "The Commercial National Bank of Great Falls," Montana, that the same must be presented to F. D. Williams, receiver, with the legal proof thereof, within three months from this date, or they may be disallowed. D. R. CRISSINGER, Comptroller of the Currency.
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Alderman Asks Council Take Action Where City Cash Is Tied Up.
Reading of a communication from City Treasurer W. P. Wren concerning the closing of the doors of the Stanton Bank and Trust company, in which the city had deposited $36,000, covered by personal bonds, precipitated an attack at the meeting of the city council Monday night by Alderman G. A. Bosley against the city's attitude regarding money in closed banking institutions. Bosley urged immediate action against the bondsmen to recover $25,000 which was on deposit in the Commercial National bank, closed in October, 1922.
Mayor H. B. Mitchell replied to Alderman Bosley, saying that he understood the Commercial bank was soon to reopen. The mayor said that at a recent conference of the aldermen, Alderman George Anderson, a banker, said he had every reason to believe the Commercial bank would reopen within a short time.
"We don't want to do anything that will hinder the bank's reopening," said Mayor Mitchell.
City Attorney George A. Judson said that it would not do the city any good to rush things and start an action at this time against the bondsmen.
Alderman Bosley closed the discussion by stating that if the city was not losing its rights in the matter by present delays, it would be better not to start action against the bondsmen at this time.
Report of the failure of the Stanton bank was referred, without action by the council, to the judiciary committee and the city attorney.
At the request of Mayor Mitchell, the city garbage system was transferred from the city sanitary department to the office of the city engineer. The action was taken to give William Shea, city-county sanitary officer, more time to devote to general sanitary affairs of the city.
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Newcomb, assistant cashier First National bank of Minneapolis; J. H. Sharpe, assistant cashier Midland National bank; P. J. Leeman, vice president First National bank; P. W. Flood, General Motors corporation; Linwood Foster, Farnham company.
Mondak — L. W. Thompson, cashier Mondak State bank.
New York—Walter P. Dickey, Mechanics & Metals National bank.
Portland, Ore.—J. L. Rivard, Irwin-Hodson company, Mr. and Mrs. George A. Dunham, Bankers' Service bureau.
Plevna—V. S. Himsl, president First State bank.
Roundup—C. W. Greening.
Sidney—S. F. Donaldson, vice president First National bank.
St. Paul, Minn.—A. B. Lathrop, assistant cashier Merchants' National bank; O. C. DeVine; Ed Schulberg, First National bank; I. E. Hansen, vice president First National bank.
Spokane—E. M. Adams; W. B. McLaren; W. E. Kelley, assistant cashier Exchange National bank.
Whitefish—C. H. Jennings, vice president First National bank.
F. J. McCullough, Roundup.
F. J. Matoushek, Sidney.
J. L. Sherburne, cashier First National bank, Browning.
Mrs. R. D. Wright, Belgrade.
F. M. Robertson, representative Federal Reserve bank, Cut Bank.
John A. Sanderson, receiver, First National bank, Cut Bank.
T. E. McClintock, receiver, Commercial National bank, Great Falls.
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FOUR BANKERS UNDER ARREST GOVERNMENT MOVES AGAINST GREAT FALLS INSTUTION. Butte, Nov. 19.-Officials of the defunct Commercial National bank of Great Falls were arrested by the United States marshal late Saturday on indictments returned in Butte Monday by the federal grand jury, which alleges misapplication of moneys, funds and credits and the making of false entries in the books. Those under arrest, all of whom gave bond before U. S. Commissioner W. S. Frary of Great Falls, it is reported here by federal officcials, are Edward R. Funk. former cashier of the bank; D. A. Davidson, former assistent cashier; Robert S. Noble, former director and now president of the Noble Mercantile company; Julien C. Peters, former director and atorney at law. Another man, who has not yet been arrested, ras also been indicted in connection with the failure of the bank which closed its doors on October 4, 1922 and for which a receiver, T. E. McClintock, has been appointed.
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ENTERED FALSE DEBITS, CHARGE
INDICTED BANKERS DECEIVED U. S. COMPTROLLER FOR YEAR, IS TESTIMONY.
Special to The Record-Herald. GREAT FALLS, Dec. 14.—Progress of the prosecution's case in the federal court trial of R. B. Noble, E. R. Funk and J. C. Peters, former officers and directors of the Commercial National bank, indicates that the government's charges are largely build around the allegation that for nearly a year prior to the closing of the bank the defendants deceived the comptroller of the currency as to its condition by entering false debits against other banks.
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BOTH MEN VERY PROMINENT IN GREAT FALLS
Great Falls, Dec. 20.—Julius C. Peters and R. B. Noble, directors of the defunct Commercial National bank, found guilty Saturday in the federal court of making false entries in the books of the bank were this morning sentenced by Judge George M. Bourquin to two and a half years at Leavenworth and fined $2500 on the first count and the same time sentence on the other 24 counts, the sentences in the penitentiary to run concurrently.
REAL PEOPLE
Julius C. Peters, is a young lawyer of Great Falls who has met with unusual success in a financial way within the past few years, being president of the Homestake Oil company of Cat Creek, the Homestake Exploration company and the Hard Rock Oil company of Salt Creek, Wyo., and was rated at the time of the bank failure October 4, 1922, as a millionaire the Cat Creek company alone bringing in 17 wells without a dry hole. He is a son-in-law of L. H. Hamilton, president of the closed bank, a pioneer sheep man of the northern part of Montana and who sold a part of his sheep and land holdings a few years ago for $400,000.
BEST PEOPLE FOR 25 YEARS
R. B. Noble has lived for 30 years in Great Falls, is head of the Noble Mercantile company, the largest retail grocery house of Great Falls, owns many ranches and much city property, was chairman of the Great Falls school board, former alderman, president of the West Side bank and prominent in civic life of the city for a quarter of a century. Peters is a man 36 years of age and has a wife and three children, while Noble is 58 and has a wife and nine children living.
Stay on execution of sentence was given until Saturday when motion for new trial will be heard and decided.
Thus the spell of the former charmed life of bankers seems to be broken.
GETS CHILDREN'S PENNIES
This bank just before it closed its doors, carried on a Thrift campaign among the school children of Great Falls, whereby it got possession of hundreds of dollars in pennies and dimes from the kids.
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That Julius C. Peters, a director in the closed Commercial National bank, had virtually admitted, during his prosecution in federal court in December, that he and other stockholders in the bank were liable for about $80,000 under the terms of indemnity agreements, was the ground on which the Aetna Casualty company moved in district court to strike the demurrer of the defendants to its suit for recovery of $20,000 of Cascade county funds on deposit in the bank when it closed and guaranteed by the casualty company.
After a hearing before Judge H. H. Ewing both sides were instructed to submit briefs on points raised in support of and objection to the demurrer.
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Receiver Announces Dividend Announcement is made by Receiver T. E. McClintock of the Commercial National bank of Great Falls, which closed its doors October 5. 1920, that a dividend of 15 per cent will be paid within the next two weeks, the dividend checks now being in Washington for signature. The total of the dividend, which is the first to be paid, amounts to $220,000.
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Receiver Announces Dividend Announcement is made by Receiver T. E. McClintock of the Commercial National bank of Great Falls, which closed its doors October 5, 1920, that a dividend of 15 per cent will be paid within the next two weeks, the dividend checks now being in Washington for signature. The total of the dividend, which is the first to be paid, amounts to $220,000.
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T. E. McClintock, receiver of the Commercial National bank, left Saturday for Cheyenne, Wyo., where he will be temporarily in charge of a national bank which suspended business there last week. His local staff will be in charge of the Commercial National during his absence, as well as banks at Highwood, Carter and Fort Benton of which he also is in charge.
PIPE LINE HEAD GOES NORTH
Mr. and Mrs. W. A. Miller and Mr. and Mrs. Thomas Kenney and daughter of Casper passed through Great Falls Saturday night on their way to the oil fields. Mr. Kenney is president of the Illinois Pipe Line company.
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CAL RELEASES GT. FALLS BANK CROOKS
Bankers Convicted By Montana Jury of Falsification of Records of Commercial Bank Paroled By President—News Kills Former Cashier.
Great Falls.—A telegram received here by State Senator J. W. Speer, attorney in the case, from the attorney general in Washington, states that he today signed a parole for J. C. Peters and R. B. Noble, vice president and director respectively of the Commercial National Bank which closed here October 4, 1922, and for falsification of the records for which both men were found guilty.
They were sentenced in the federal court here to 30 months' prison and $2,500 joint fine and costs. Their appeal failed and they went to Leavenworth last December. The fine and costs, amounting to $4,000 have been paid. Peters, previous to his conviction had been a practicing attorney, president of the Homestake Oil company and was rated wealthy. Noble was a merchant and banker and also was rated as wealthy. Ray Funk, cashier of the Commercial National, and indicted with Peters and Noble but a witness for the state, died here last night a victim of nervous prostration. After the conviction of Peters and Noble the indictment against Funk was quashed.
NOBLE'S DOWNFALL
Noble was the leader of a gang who kidnapped J. Moran, who was editor of Town Topics five years ago, and brutally assaulted him at Cascade and Great Falls. Moran printed a squib in Town Topics warning of the danger of Noble having access to the vault. Shortly afterwards Noble was removed from the office of the bank. He afterwards repented of his assault on Moran and his opposition to labor and assisted the families of railroad workers in Great Falls during the shop strike.