Roundup National Bank (Roundup, MT)

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Run Forces Roundup Bank to Shut Doors; Resumption Assured

Special to the Tribune.

Roundup, Aug. 11. — The Roundup National bank failed to open its doors Thursday morning. A notice posted and signed by directors of the institution, informed the public of a run that promised serious proportions the day before, following rumors which were termed "false propaganda" in the notice.

It is currently rumored, however, that the officers and directors of the bank will take advantage of the law which permits closed banks to reopen within 48 hours, and open for business on Monday morning. Because of the service which this bank has rendered during the last few months, following the closing of other banks in the county, the depositors and citizens are expressing their willingness to assist in every way that this institution might be opened immediately.

The Citizens State bank of Roundup which closed last February, is rapidly getting in position to reopen, according to general information. The stockholders have raised the necessary funds on their accounts and the required quota of depositors have signed for reopening. While no formal statement has been given as to the date this is possible, it is believed the bank will be opened within the 30 days following.

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Run on Roundup Bank

A run on the Roundup National bank last Thursday was the result of that institution closing its doors and a notice posted and signed by directors informing the public that the run promised serious proportions due to withdrawals of funds by depositors. The Citizen State bank of that city which closed last February is expected to reopen for business within the next month, according to general information. The stockholders having raised the necessary funds on their accounts and the required quota of depositors signed up for reopening the institution.

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MUSSELSHELL COUNTY HAS ONLY ONE BANK LEFT

The closing of the Roundup National bank last Thursday was due, according to officials of the bank who signed a statement to the public, to a false rumor which was about to cause a run on the bank. This leaves only one bank doing business in the county, the First National bank of Musselshell. The citizens State bank, which closed several months ago, is said to be ready to open for business again, having been put on a firm financial foundation.

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SPREADING RUMORS CLOSE ROUNDUP'S LAST BANK

The Roundup National Bank closed it's doors last Thursday as a result of thoughtless rumors which spread like wildfire over the city and started a run on the bank which could not be withstood. The whole foundation for the persistent rumor is said to lie in the discussion over the memorial services for the late President. The postmaster and the manager of the bank were arranging for the services and for the closing of all places of business and the banker announced that the bank would certainly close on Friday. Whereupon a woman who was transacting business at the bank without waiting to inquire into its real meaning, promptly started the word going which resulted in the bank being forced to a real closing on Friday in order to save itself from bankruptcy.

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NAMED BANK RECEIVER Special to The Tribune. Lewistown, Sept. 15.—Burton R. Cole, special assistant to the attorney general at Washington, D. C., returned home Friday, having been detached from his regular duties to act as receiver for the Roundup National bank, which closed a short time ago. Mr. Cole will be in Montana for some time.

There are a little more than one million Russians and 1,686,000 Germans in America, according to the census of 1920.

ing high rates. It is protecting industry with high tariff laws and is protecting banking with emergency legislation. Agriculture alone, and especially the wheat producer, says Dr. Coulter, suffers through the failure on the part of the administration to continue emergency relief measures for him during the period of readjustment.

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ROUNDUP TO HAVE A NEW BANK NOV. 1

Miners and Merchants Bank to Open in First National Building.

The Miners and Merchants Bank, a new institution recently organized with some of the strongest men of the state, financially, back of it, will open its doors in Roundup on November 1st, according to announcement made this week by J. G. Reitsch, president of the First National Bank of Musselshell, who will be cashier of the new bank. The new bank will occupy the First National bank building on which a lease for a term of years has been secured.

A charter was granted the new bank by the state banking department several weeks ago, and its articles of incorporation were filed in the office of the county clerk and recorder on Tuesday. The bank has a capital stock of $30,000, fully subscribed, and among its stockholders are included A. C. Johnson, Frank H. Johnson, president and vice president of the American National Bank of Helena, respectively, A. K. Prescott, prominent financier of Helena who is also heavily interested in the Roundup coal fields, owning a tract of coal land directly south of Roundup, and Herbert Johnson, famous cartoonist of the Saturday Evening Post and a brother of Frank H. Johnson. A. C. Johnson is the president, and Frank H. Johnson vice president.

Not a Branch Bank.

The new bank will not be a branch bank in any sense but will stand entirely on its own footing. Being backed by some of the wealthiest men of the state, who also have had many years of experience in the banking business, it is generally regarded as an exceptionally strong institution and will therefore start out with the full confidence of the business men and citizens of Roundup and Musselshell county.

J. G. Reitsch, cashier of the new bank, is well known in Roundup, having established the First National Bank of Musselshell about five years ago, ever since which time he has resided in Musselshell. He has built up the Musselshell bank into one of the strongest institutions in the state, having been the only bank in the county since the closing of the Roundup National bank. Mr. Reitsch will remove to Roundup at once, having rented the Ben Steele residence on Third street west, now occupied by E. N. Smith.

New Policies.

According to Mr. Reitsch, the new bank will make some radical departures from the accustomed practices of banks, all of which will be done in the interest of safety to depositors. No time deposits will be accepted, Mr. Reitsch explaining that a bank cannot afford to pay 5 or even 4% interest on these deposits providing the money is invested in securities that can be turned into cash on short notice. It will be the policy of the bank to keep a large reserve and in addition to keep its assets in such shape that they will be extremely liquid at all times. Individual depositors will be required to keep an average balance of $50, while for business firms a minimum average of $100 has been set. When the balance falls below these marks a small charge will be made.

The new bank will pay a rental of $150 per month for the use of the First National bank quarters, Receiver C. W. Greening of that institution being permitted to use the rear room free of charge. The arrangement should meet with the approval of depositors of the First National.

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CONTRACT WITH W. A. PENNINGTON DECLARED VOID

ENFORCEMENT FUND OF $800 ALSO SAID TO HAVE BEEN ILLEGALLY WITHDRAWN

State Examiner's Report Says County Attorney Should Make Restitution—Report Discloses Musselshell County Has $278,930.90 in Closed Banks.

The contract entered into by the board of county commissioners of Musselshell county with W. A. Pennington whereby the latter was engaged to prosecute certain cases against former members of the board is declared to be without legal authority according to a report filed this week with County Clerk and Recorder Volney J. Hain by F. E. Williams, a deputy state examiner, who conducted an examination of the affairs of the county in October. A claim filed by Mr. Pennington for $300 for services performed in accordance with the terms of the contract and paid by the board, is stated to be illegal. It is pointed out in the report that both the contract and claim are illegal for the reason that the law provides that the board may provide the county attorney with additional help when necessary.

The payment of $800 to County Attorney Chas. F. Huppe by the board for the purpose of financing detectives engaged in gathering evidence for the enforcement of the prohibition laws, is also declared by the report to be illegal and the money so paid should be returned to the county. In this connection the report says: "The using of this fund in this manner is entirely illegal, and the board of county commissioners should immediately direct that this fund be turned in to the county treasurer. Chapter 116 of the session laws of 1923, amends section 11,071, 11,075 and 11,079 of the revised codes of 1921, and you are referred to section 11,084 of this chapter, which defines the method of distributing the net proceeds of the fine and to what funds, viz., 50% to the general fund of the county and the remaining 50% to the law enforcement fund to be remitted by the county treasurer to the state treasurer. This law became effective March 7, 1923. All monies collected and credited since that date to the general school fund should be transferred to the general fund. You are requested to read carefully the said chapter 116."

The report discloses the fact that Musselshell county has on deposit in closed banks an enormous sum, the names of the banks and the amounts being as follows:

First National, Roundup $55,055.78 Lavina State Bank 24,128.86 Melstone State Bank 18,933.48 Roundup National Bank 32,910.50 Musselshell State Bank 63,702.28 Citizens State Bank 70,274.81

In addition to the above there was $13,925.19 deposited in the Farmers & Merchants Bank of Ryegate, which closed its door since the examination was made, bringing the total amount of funds deposited in banks that are now closed to $278,930.90.

The report commends all the county officials for the efficient manner in which the books and records of their respective offices are kept up. Criticism is confined almost entirely to irregularities of claims, such as failure to itemize properly or failure to sign or endorse.

A new law passed by the last legislature provides that the examiner's report be made a part of the commissioners' minutes at the meeting following its receipt and that it must be published in the official county paper in full as a part of the proceedings.

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TRYING TO CLOSE RECEIVERSHIP OF ROUNDUP NATIONAL Depositor Petition To Have Defunct Bank Consolidate Receivers.-Petions Are Sent To Walsh, But Are Ignored By That Gentleman. BANKS ARE RIFLED BEFORE THEY CLOSED Roundup, Dec. 6.-What is regarded as the first definite step toward the closing up of the receivership of the defunct First National Bank of RcJundup has been taken in the PROFESSIONAL form of a court order, isued by Judge George A. Horkan, authorizing Receiver C. W. Greening to sell the bank building and fixtures at IRECTORY public auction on December 19. D It is understood that more than one bidder is expected to be present and that $18,000 is the minimum figure which will bₑ considered. The building is now occupied by the Min. ers and Merchants bank under a lease which will expire in November, 1925, S. E. Paul and it is certain that the Miners and Merchants will be one of the bidders at the sale MAY COMBINE Attorney-At-Law RECEIVERSHIP There is a rumor which bears some Practice In All Courts appearance of authenticity that the receiverships of the First National United States and Roundup National are to be comCommissioner bined. It has been a matter of common knowledge for some time that Plentywood, Mont. the assets of the Roundup National are practically nothing, all negotiable papers having been redisccunted before the bank closed, and it is not generally believed that sufficient colCAFE POOL HALL lections are being made to pay the salary of the receiver. BARBER SHOP Petitions by depositors requesting that the receiverships of the two H. A. Burnham Barber banks be combined were sent to the comptroller many months ago and JONESJ& OLSON, Prop their receipts were acknowledged by Comertown, Mont. Senator T. J. Walsh, who presented them, but no action was taken and no recognition given the plea of the depositors.

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TRYING TO CLOSE RECEIVERSHIP OF ROUNDUP NATIONAL

Depositor Petition To Have Defunct Bank Consolidate Receivers.—Petitions Are Sent To Walsh, But Are Ignored By That Gentleman.

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Roundup, Dec. 6.—What is regarded as the first definite step toward the closing up of the receivership of the defunct First National Bank of Roundup has been taken in the form of a court order, issued by Judge George A. Horkan, authorizing Receiver C. W. Greening to sell the bank building and fixtures at public auction on December 19.

It is understood that more than one bidder is expected to be present and that $18,000 is the minimum figure which will be considered. The building is now occupied by the Miners and Merchants bank under a lease which will expire in November, 1925, and it is certain that the Miners and Merchants will be one of the bidders at the sale.

MAY COMBINE RECEIVERSHIP

There is a rumor which bears some appearance of authenticity that the receiverships of the First National and Roundup National are to be combined. It has been a matter of common knowledge for some time that the assets of the Roundup National are practically nothing, all negotiable papers having been rediscounted before the bank closed, and it is not generally believed that sufficient collections are being made to pay the salary of the receiver.

Petitions by depositors requesting that the receiverships of the two banks be combined were sent to the comptroller many months ago and their receipts were acknowledged by Senator T. J. Walsh, who presented them, but no action was taken and no recognition given the plea of the depositors.

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There is a rumor which bears some appearance of authenticity that the receiverships of the First National and Roundup National are to be combined. It has been a matter of common knowledge for some time that the assets of the Roundup National are practically nothing, all negotiable papers having been rediscounted before the bank closed, and it is not generally believed that sufficient collections are being made to pay the salary of the receiver.

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REVIVE PLACER MINING BUTTE

BUTTE, Dec. 14.—Silver Bow creek, which meanders much and during flood periods is completely unmanageable, is getting a new and straight course to follow and, as the city dredge is tearing its way through the lowlands on the edge of the city, rumors are current that sufficient showings of gold are being exposed to warrant a revival of placer mining along the creek.

Mayor Horgan is having assays made of muck tossed up by the dredge and a number of old timers are making a survey with the view of bringing in a gold dredge as was profitably used at Bannack and Lake Sewell, near Helena, recently.

Although no nuggets of startling size have been turned up, dust is present and those planning a placer revival declare that the color is sufficient to insure profit under present day methods.

Like Alder Gulch and other famous placer sites in Montana, Silver Bow creek yielded thousands to early day "panners" and crudeness of methods then followed resulted in much valuable dust being left behind. Much of this at Alder has been recovered in the last few years by dredges and this method will be employed here.

At one point on the creek, west of Missoula gulch, $18,000 was taken from one pocket during placer day of 40 years ago and such old-timers as John Noyes, Charley Carver, David Upton and the Humphrey brothers made their first strikes with pans or cradles along the creek.

The muck in the creek bed is from 20 to 25 feet deep and, through this dust is deposited for a distance of about 10 miles. With a view of washing the muck, those planning to import a gold dredge are seeking one especially low-built because of bridges along the creek.

ROUNDUP BANK RECEIVER

ROUNDUP, Dec. 14.—C. W. Greening, receiver of the First National bank, has been appointed as receiver of the Roundup National bank, succeeding Burton R. Cole, resigned, the consolidation being effective at the close of business Monday night. Notice to this effect was received by both Mr. Greening and Mr. Cole on Monday and immediate arrangements were made for the transfer. It is understood that Mr. Cole's resignation had been in the hands of the comptroller of currency for some time.

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LEGALS.

SHERIFF'S SALE. John Loewen, plaintiff, Hjalmar Clara Johnson, his wife, MusFarm Loan company, corporation, County, Montana, The Round up National Bank, national banking corporation, and W Greening, as ceiver of said The Roundup National sold at sale on Saturday. the 27th day June, door the court house the city of Roundup. Mus. state of Montana, to the highest and best bidder for cash in hand. the fol lowing and premises, lying and being in Musselshell of Montana, and bounded and described as follows, to-wit: The northeast quarter (NE) of section twenty (28), in township eight north twenty (24) east the Montana principal Dated, Roundup, Montana, this 3rd day of June, A. D. Sheriff. SAM N. YOUNG. Under Sheriff. Roundup, Montana attorney for plaintiff.

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M'CULLOUGH

McCullough was Wednesday appointed joint receiver the First National and Roundup National bank, to take the place of Greening. who tendered resignation several days Mr. McCullough has been representing the Federal Rebank here for the past years and is well and orably known. He took charge his new duties once. Mr. Greening has accepted position as cashier of near Tacoma, and expects leave about

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C. W. GREENING GOES TO TACOMA TO RUN A BANK

Word comes from Roundup that C. W. Greening, former state senator from Big Horn county and for the past couple of years receiver of the two defunct Roundup banks-t h 8 First National bank and the Roundup National n will go to Tacoma, Washington, to take the management of a new bank which is being organized in that city. With his family, Senator Greening expects to leave Roundup for Tacoma about July 25.