10757. American State Bank (Burlington, ND)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
August 22, 1927
Location
Burlington, North Dakota (48.275, -101.429)

Metadata

Model
gpt-5-mini
Short Digest
87b7844a308c6bc7

Response Measures

None

Description

Articles consistently refer to L. R. Baird as receiver of the American State Bank of Burlington (receiver active in 1927 and 1928) and later court proceedings (1931) concerning the receiver. No articles describe a depositor run; the bank was in receivership and its assets were being sold, indicating a suspension/closure with receiver. Dates taken from publication dates and article context; no explicit day of suspension given prior to receivership mention.

Events (3)
1. August 22, 1927 Receivership
Newspaper Excerpt
L. R. Baird, as receiver of the American State Bank of Burlington, North Dakota, defendant and respondent.
Source
newspapers
2. May 2, 1928 Other
Newspaper Excerpt
L. R. Baird, as receiver of the American State Bank of Burlington, was authorized to sell the property of the Burlington Telephone company to the Carpio Telephone company.
Source
newspapers
3. September 26, 1931 Other
Newspaper Excerpt
the supreme court stated ... the case of Ward county and A. S. Spicher, as sheriff of Ward county, against the receiver of the American State bank at Burlington.
Source
newspapers

Newspaper Articles (3)
1. August 22, 1927 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, August 22, 1927

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Article Text

HAVE A SON A son was born Friday to Mr. and Mrs. Albert Chester of this city, SUPREME COURT From Burleigh County Ward county, a municipal corporation, and A. S. Spicher, as sheriff of Ward county, North Dakota, plaintiffs and appellants, vs. L. R. Baird, as receiver of the American State Bank of Burlington, North Dakota, defendant and respondent, and Ward county, a political corporation, and A. S. Spicher, as sheriff of Ward county, North Dakota, plaintiffs and appellants, vs. L. R. Baird, as receiver of the State Bank of Berthold, Berthold, North Dakota, defendant and respondent. Syllabus: 1. Section 2115, 1913 Compiled Laws, as amended by chapters 61, S. L. 1917 and 299, S. L. 1923, relating to the taxation of banks and loan and trust companies, contemplates a tax on shares of stock belonging to the stockholders and not a tax on capital stock or assets, the property of the corporation. 2. Paragraph 5 of section 2115, 1913 Compiled Laws, as amended by chapters 61, S. L. 1917 and 299, 1923, providing that any solvent bank or loan and trust company may, upon written request of its cashier or other officer, have the amount of the assessment against its stockholders contemplated by section 2115, as amended, assessed against the bank or loan and trust company in its corporate name and that the tax thereon may be paid as other expenses of the bank or loan and trust company are paid, was enacted for the convenience of the bank and its stockholders in paying the tax and in aid, the taxing authorities in collecting it, by enabling the bank to act as the voluntary agent of the stockholders for the purpose of paying the tax, and does not contemplate that the tax so assessed shall be a tax against the capital stock or assets of the corporation. 3. Section 2117, 1913 Compiled Laws, was enacted to afford a method and means whereby the collection of taxes assessed under section 2115 might be insured; and the lien for such taxes therein created against the dividends, the capital stock and the assets of the bank is a lien upon only the dividends, capital stock and assets belonging to the stockholders thereof, that is, upon the distributable assets of the bank. 4. Where a bank pursuant to the provisions of paragraph 5 of section 2115, 1913 Compiled Laws, amended, voluntarily assumés to act as the agent for its stockholders, for the purpose of paying their taxes, the obligation thereby arising to pay such taxes is limited to the distributable assets that it may hold belonging to the stockholders, and if the bank becomes insolvent and there are no distributable assets, collection of such taxes cannot be enforced against the receiver of the bank or out of the assets in his hands. Appeals from the district court of Burleigh county, Hon. Chas. M. Cooley, special judge, Two actions against the receiver of insolvent banking corporations to enforce the collection of taxes assessed no shares of stock in such corporations prior to their insolvency. The receiver demurred to the complaints. The demurrers were sustained and judgments of dismissal entered. Plaintiffs appealed. Affirmed in both cases. Opinion of the court by Nuessle, judge. T. H. Thoreson, tax commissioner, and C.J. Lynch of Bismarck, attorneys for appellants; H. E. Johnson, state's attorney of Ward county, B. A. Dickinson, assistant state's attorney of Ward county, and H. Bosard, all of Minot, of counsel for appellants. Zuger & Tillotson of Bismarck, attorneys for respóndent. From Grant County Cedar Rapids National Bank, a corporation, plaintiff and appellant, vs. A. H. Snoosy and Ed Sneozy, defendants and resopndents. Syllabus: 1. Where promissory notes ex-

2. May 2, 1928 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, May 2, 1928

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Article Text

to buy the telephone exchange at Westhope from the Westhope Telephone, Light and Power company. Permission to dismantle two miles of rural telephone line in Seiverat township was granted to the Farmers Telephone company of Starkweather. L. R. Baird, as receiver of the American State Bank of Burlington, was authorized to sell the property of the Burlington Telephone company to the Carpio Telephone company. Certificates were granted to the Northern Light and Telephone company permitting it to furnish telephone service at Hannaford, Luverne, Dazey, Pillsbury, Milton, Osnabrook, Bathgate, Neche, Hamilton, Pisek, Fordville, Forest River, Inkster, Grano, Tolley and Fingal. Permission to construct and operate a new pole line between Crosby and the Montana state line was granted to the Northwestern Bell Telephone company.

3. September 26, 1931 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, September 26, 1931

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Article Text

BANK STOCKHOLDERS ARE LIABLE FOR TAX Opinion Is Drawn by Assistant Attorney General for Dickey Treasurer Bank stock may be assessed in the name of a bank, but if the bank fails, the stockholders are liable for the tax, Charles Simon, assistant stat attorney general, ruled in an opinion furnished to H. J. Oberman, Dickey county treasurer at Ellendale. The opinion was given in reply to inquiries as to the assessment of bank stock in the case of the Farmers' State bank of Fullerton, which closed June 14, 1930. The bank, in the past, had paid the taxes on the shares of stock of the bank, acting as the agent of the stockholders. "It has been the practice in this state," the opinion said, "to have the bank stock assessed in the name of the bank for the convenience of the stockholders, but in order to have the stock assessed in the name of the bank, the bank must sign a written request for such assessment, but if the in nk fails, the stockholders are liable for the tax." Oberman advised -the attorney general that stockholders of the bank appear to be of the opinion that if an assessment is proper that the receiver of the closed bank should pay such tax. This question, Simon stated, has already been passed on by the state supreme court in the case of Ward county and A. S. Spicher, as sheriff of Ward county, against the receiver of the American State bank at Burlington. In this case the supreme court stated that the taxation of banks and loan and trust companies contemplates a tax on the shares of stock belonging to the stockholders and not a tax on capital stocks or assets.