10977. First State Bank (Jud, ND)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
August 2, 1919
Location
Jud, North Dakota (46.526, -98.896)

Metadata

Model
gpt-5-mini
Short Digest
2928eb1ea6d45245

Response Measures

None

Description

Articles describe embezzlement by bank officers, appointment of a receiver and the bank being closed; no article describes a depositor run. The bank remains in receivership/closed with later court actions, dividends paid by receivers and conviction/sentencing of the president. OCR variant: one article spells Jud as 'Judd'—corrected to Jud (LaMoure County, ND).

Events (4)
1. August 2, 1919 Receivership
Newspaper Excerpt
The bank is in the hands of Manuel F. Blanco, as temporary receiver.
Source
newspapers
2. August 2, 1919 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Cashier E. H. Mann confessed and President Pierce Egan charged with embezzlement; alleged looting of approximately $42,000 between April 10 and July 31, 1919.
Newspaper Excerpt
The bank is in the hands of Manuel F. Blanco, as temporary receiver.
Source
newspapers
3. April 30, 1920 Other
Newspaper Excerpt
Pierce Egan, former president of the First State bank of Jud, N. D., pleaded guilty ... and was sentenced to from one to five years in the state penitentiary.
Source
newspapers
4. June 6, 1924 Other
Newspaper Excerpt
dividends ... ten to 15 percent in the case of the First State Bank of Jud, to the Guaranty Fund Commission, which had reimbursed depositors, and the non-secured creditors, as soon as proofs of claims are in.
Source
newspapers

Newspaper Articles (7)
1. August 7, 1919 The Oakes Times Oakes, ND
Article from The Oakes Times, August 7, 1919

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Article Text

BANK SHORTAGE REACHES $42.000 MANN OF ELLENDALE FAME HELD TO ACCOUNT will Depositors Will Be Paid in Full Losses Are Covered By Gaaranty Fund Bismarck, Aug. 2-Charged with having looted the First State Bank of Jud, in LaMoure county, of $42,000 between April 10th, when they took over the institution. and July 31st, E. H. Mann, cashier, following the signing of a written confession, is at llberty under $5,000 bonds, and Pierce Egan, the president, is being sought at Salt Lake City on extradition papers issued by Governor Frazier. The bank is in the hands of Manuel F. Blanco, as temporary receiver. The loss. which will be $42,000. assuming that all of the paper held by the bank turns out to be as bad as State Examiner Lofthus fears, will be fully covered by the state depositors' guaranty fund, which now amounts to more than $100,000, and which will be doubled by this year's assessment, recently made. No extra call will be necessitated by the Jud shortage, which is the first which has had to be covered from the state depositors' fund. The state examiner notified Attorney General Langer of the condition of affairs at Jud. Albert E. Sheets Jr., assistant attorney general, left for Jud at once to investigate. Cashier Mann was arrested on a charge of falsifying the books of the bank, arraighted before the county judge at LaMoure a written confession procured from him, and bonds in the sum of $5,000 accepted. As a result of Mann's confession, a warrant was issued for the arrest of President Egan, charging him with embezzlement of $42,000. Extradition papers were signed by Governor Frazier, and an officer departed for Utah to seek Egan, who was last heard from at Salt Lake City. E. H. Mann is a son of W. H. Mann of New Salem, one of the Slope's best known merchants. Egan formerly was in the banking business at Golden Valley, and was one of the first business men to establish himself in the Golden Valley country. Mann it is said, was recently married to his 0 third wife, a Virginia young woman whom it is alleged. he met through the medium of a matrimonial bureau. The Jud state bank is capitalized at $10,000, has a surplus of $12,500, and its last-footings were approximately $183,000.

2. April 30, 1920 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, April 30, 1920

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Article Text

JUD BANKER IS SENTENCED FOR LENGTHY TERM Pierce Egan, Former President of Wrecked Bank, Gets One to Five Years & ALLOWED 60 DAY FREEDOM Stay of Sentence Signed to Enable Convicted Man to Help Receiver La Moure, N. D., April 30. - Pierce Egan, former president of the First State bank of Jud, N. D., pleaded guilty before Judge Graham in the La Moure district court to the charge of embezzlement and was sentenced to from one to five years in the state penitentiary. Judge Graham today signed an order granting a 60 day stay of sentence, Egan to commence serving time on June 28. In the interval he will be tree under a bond of $5,000, the order being signed on the showing that it was advisable to permit Egan to aid the receiver of the closed bank to disentangle its affairs. Short $40,000 When Egan was arrested the state charged him with financial operations totaling approximately $40,000 during his career of only a few months as president of the institution. Partial restitution of the bank's fund has been made, according to State's Attorney Hutchinson, who declined to recommend lediency for Egan.

3. April 30, 1920 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, April 30, 1920

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Article Text

PIERCE EGAN PLEADS GUILTY Sentenced to From One to Five Years in State Penitentiary. LaMoure. N. D., April 30.-Pierce Egan, former president of the First State bank of Jud, N. D., pleaded guilty before Judge Graham in the LaMoure district court to the charge of embezzlement and was sentenced to from one to five years in the state penitentiary. Judge Graham today signed an order granting a sixty-day stay of sentence, Egan to commence serving time on June 28. In the Interval he will be free under bonds of $5,000, the order being signed on the showing that it was advisable to permit Egan to aid the receiver of the closed bank to disentangle its affairs. When Egan was arrested, the state charged him with financial operations totalling approximately $40,00.0, during his career of only a few months as president of the institution. Partial restitution of the bank's funds has been made, according to State's Attorney Hutchinson, who declined to recommend leniency for Egan.

4. May 21, 1920 The Producers News Plentywood, MT
Article from The Producers News, May 21, 1920

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Article Text

PIERCE EGAN GETS ONE TO FIVE YEARS LaMourse, N. D.-Pierce Egan, former president of the First State Bank of Judd, N. D., pleaded guilty before Judge Graham in the LaMoure district court to the charge of embezzlement and was sentenced to from one to five years in the state penitentiary. Judge Graham signed an order granting a sixty-day stay of sentence, Egan to commence serving time on June 28. In the interval he will be free under bonds of $5,000, the order being signed on the showing that it was advisable to permit Egan to aid the receiver of the closed bank to disentangle its affairs. When Egan was arrested, the state charged him with financial operations totalling approximately $40,000, during his career of only a few months as presidention of the institution. Partial restitution of the bank's funds has been made, according to State's Attorney Hutchinson, who declined to recommend leniency for Egan.

5. January 19, 1923 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, January 19, 1923

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Article Text

# GUARANTY LAW # IS TOO LOOSE # SOLONS TOLD (Continued from page 1) receiver, that the Guaranty Fund has no definite legal direction as to he method of paying out the money n its hands, that it had no power o protect or salvage assets that may e in jeopardy of sale under fore-closure, that there is no method of eliminating weak banks from the system, that the banking board consists of elected officials who do not have adequate time to perform their duties; that the banking board has no power to sell the assets of closed banks although expenses may be eating up the assets. The commission will later submit detailed figures of the condition of each bank to the legislature. Report in Full The report follows: "Pursuant to the request contained in the joint resolution adopted by you, for a report of the activities of the Depositors' Guaranty Fund Commission for the past two years, we beg leave to report. "The Legislature of 1917 enacted the law creating the Depositors' Guaranty Fund and provided therein for a guaranty of certain deposits in state banks, through an assessment upon the state banks proportionate to such deposits, and provided for a commission of five, of which the Governor and State Examiner are ex-officio members, the three remaining members to be appointed by the Governor from nominations made by the state banks. "The work and problems of this Guaranty Fund Commission for the past two years have been principally the problems of closed banks. Since the enactment of law, seventy state banks have been closed by the Banking Department and receivers appointed therefor as provided by law. Of the banks which have been closed, depositors of the First State Bank at Jud and the Farmers State Bank of Marmarth have been paid in full; Nineteen banks have been reopened and are now running, leaving now fifty-one state banks closed and in the hands of receivers appointed by the Banking Board. We submit herewith a statement as to these closed state banks showing their condition in detail, and, as a total. An examination of this statement will show that no substantial amount can be expected to be realized from the assets of these banks after paying expenses. Audit Made The state banks, upon which the burden of losses must eventually fall, at their Annual Association Meeting held in 1922, appointed a committee consisting of Geo. H. Hollister, H. P. Goddard and A. E. Severeid, to represent them in all things before this commission, and gave to that committee as full powers as it was possible for them to do. The rating of the assets of these closed banks has been, we think, thoroughly done. Mr. H. P. Goddard of the State Bank Committee and Mr. B. J. Schoregge, supervisor of Receivers, have done the work in detail and the Guaranty Fund Commission and the Members of the State Bank Committee all feel confident that the values placed upon these assets are as nearly correct as can be determined at this time. In making these ratings they took advantage of all information they could secure from every source, and much time and care was used in making the ratings reliable. You will observe that the total deposits in the closed banks amount to $7,145,636.00, and of this amount, according to the audit by the State Bank Committee, less than fifty per cent is guaranteed under the Guaranty Law. This same Committee was appointed in June, 1921, by the State Bankers' Association, to aid in the auditing of deposits in all the closed banks, both for their own information and to assist the Commission in developing the facts that they might eventually arrive at an intelligent decision as to what claims were guaranteed and what were not. The origin and detail of every deposit in every one of the closed banks were investigated and the reports are now on file with the Secretary of this Commission, and to which reports reference is hereby made, Much Undetermined "The Commission has not finally admitted nor denied liability to individuals on their claims for guaranty of ther deposits; the law provides no method for certifying to individual claims. Court decisions will in many cases be necessary to determine the liability of the Guar-

6. June 6, 1924 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, June 6, 1924

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CLOSED BANK DIVIDENDS TO BE PAID SOON Expiration of Time For Notice of Payment to Bring Action by Receiver Payment of dividends to depositors from funds of closed banks, the first of which was made sometime ago in the case of a Leith bank by L. R. Baird, general receiver, will be continued during the summer months. Mr. Baird said today that dividends will be paid in the Farmers State Bank of Marmarth of five percent and ten to 15 percent in the case of the First State Bank of Jud, to the Guaranty Fund Commission, which had reimbursed depositors, and the non-secured creditors, as soon as proofs of claims are in. Dividends will be made in five other banks as soon as the expiration time of the notice given to creditors to file claims is reached, it being required under court order that four months notice be given to creditors to present claims.

7. January 16, 1925 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, January 16, 1925

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SUPREME COURT From Burleigh County The State of North Dakota for itself and on behalf of all creditors of defendant banks, Plaintiff and Respondent, vs. First State Bank of Jud, Mohall State Bank and numerous other insolvent banking corporation, Defendants and Appellants. SYLLABUS: 1. Under the Constitution of this State all governmental power is vested in the legislature except such as is granted to the other departments of government, or expressly withheld from the legislature by constitutional restrictions. 2. The only test of the validity of an act regularly passed by the legislature is whether it violates any of the express or implied restrictions of the state or federal constitutions. 3. If the end be legitimate, all the means which are appropriate which are plainly adapted to that end. and which are not prohibited, may constitutionally be employed to carry it into effect. 4. A litigant can be heard to question the validity of a statute only when, and in so far as, it is applied to his disadvantage. 5. For reasons stated in the opinion it is held that Chapter 137, Laws 1923 is constitutional; that the legislature in the exercise of its constitutional powers as the lawmaking body of the state may prescribe the conditions under which a banking corporation organized under the laws of this state shall be deemed insolvent; authorize the Attorney General of the State to bring an action in the name of the state for the liquidation of such bank, or banks; vest the district court of Burleigh county with jurisdiction of such action, and require the supreme court, in the exercise of its supervisory jurisdiction over inferior courts, to designate a district judge to hear and determine such actions and appoint a receiver. Appeal from the district court of Burleigh County, Cooley, Special J. Defendant appeals from an order sustaining M demurrer to his answer. Affirmed. Opinion of the court by Christianson, J. Francis J. Murphy, of Fargo, At. torney for Appellants. Geo. F. Shafer, Attorney General and John Thorpe, Assistant Attorney General, Attorneys for Respondent.