10993. Farmers & Merchants Bank (Kindred, ND)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
June 17, 1931
Location
Kindred, North Dakota (46.649, -97.017)

Metadata

Model
gpt-5-mini
Short Digest
c4cf0a0cf9c1b1f5

Response Measures

None

Description

Articles describe heavy withdrawals after cashier Adolph Dokken's suicide and discovery of embezzlement, leading directors to close the bank (temporarily closed July 13, 1931) and subsequent liquidation/receivership. Closure appears permanent with a state receiver and liquidation actions through late 1931 and lawsuits in 1934.

Events (3)
1. June 17, 1931 Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy withdrawals began after the cashier Adolph Dokken committed suicide and revelations he had embezzled at least $36,000.
Measures
Directors ordered the bank closed; state examiner recalled for second inspection; audit and liquidation proceedings initiated.
Newspaper Excerpt
The heavy withdrawals started the suicide June 17 following Adolph Dokken, for 11 years cashier the bank.
Source
newspapers
2. July 13, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors ordered temporary closure after steady run had reduced reserves following Dokken's suicide and discovery of embezzlement.
Newspaper Excerpt
The Farmers and Merchants bank Kindred, closed Monday ... Directors of the bank said it was closed ... after continued heavy withdrawal.
Source
newspapers
3. December 19, 1931 Receivership
Newspaper Excerpt
Depositors of the closed Farmers and Merchants Bank of Kindred are receiving a 10-per-cent dividend, it is announced by L. R. Baird, state receiver.
Source
newspapers

Newspaper Articles (5)
1. July 14, 1931 The Bismarck Tribune Bismarck, ND
Article from The Bismarck Tribune, July 14, 1931

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Article Text

CLOSED; OFFICERS SCANNING Examiner Who Found No Irregularities Is Ordered Back for Second Inspection Fargo, July Farmers and Merchants bank Kindred, closed Monday, and officers the bank and state banking department deputy are scanning of the institution. Directors of the bank said it was closed their orders to continued heavy withdrawal and percloser checking of the records. Larson, deputy examiner the state department, who recently completed check the records the no irregularities been found, ordered back to Kindred to give the books second inspection. The heavy withdrawals started the suicide June 17 following Adolph Dokken, for 11 years cashier the bank. Dokken left note saying was worrying himself to death "over

2. October 2, 1931 The Fargo Forum, Daily Republican, and Moorhead Daily News Fargo, ND
Article from The Fargo Forum, Daily Republican, and Moorhead Daily News, October 2, 1931

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Article Text

KINDRED BANK FUNDS SIGNED Obtain $200,000 Deposits For Approving Of Liquidation Plan Special to The Fargo Forum Kindred. N. D., Oct. 2-Depositors holding $200,000 of funds in the tempararily closed Farmers and Mer. chants State bank here have signed the agreement placing disposition of the bank's affairs in the hands of liquidating committee is an nounced by Illiam Lemke, attorney for the depositors. The $200,000 represents approxi mately 50 per cent the deposits in bank at the time of its closing, the aftermath of Adolph Dokken, the cashier. taking his own life To proceed with the liquidation plans, 80 per cent of the deposits, less public moneys and accounts of less than $25, must be obtained, Mr. LemIf the required 80 per cent is obtained. the depositors committee will forward six names to the district court for approval as liquidating committee. The court will name three of men, and then guida tion of the bank's assets will PO forward. The Farmers and Merchants bank was ordered temporarily closed July 13 by the directors after steady run had reduced the bank's reserves. Dokken's suicide and subsequent revelations he had embezzled at least $36,000 of the bank's funds, caused the withdrawals Work on an audit of the bank's at fairs is continuing in Bismarck under direction of the state bank examiner's office.

3. December 19, 1931 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, December 19, 1931

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Article Text

Kindred Bank Pays Depositors Dividend Depositors of the closed Farmers and Merchants Bank of Kindred are receiving a 10-per-cent dividend, it is announced by L. R. Baird, state receiver. Payments are being made through the office of O. L. Engen, district manager at Fargo.

4. December 1, 1934 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, December 1, 1934

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Article Text

KINDRED BANK SUIT WILL OPEN TUESDAY L. R. Baird, as Receiver, to Ask $300,000 From Directors in Cass Court Fargo, N. D., Dec. 1. - (AP) The $300,000 damage suit brought by L. R. Baird, as receiver, against directors of the closed Farmers and Merchants Bank of Kindred, N. D., has been set for trial opening Tuesday in Cass county district court before Judge P. G. Swenson of Grand Forks. The action is against Nels Olsgaard, R. Evingson, T. B. Borderud, E. T. Lee and O. M. Huseby, and is for $305,136.77. It is charged that negligence and mismanagement of the bank on the part of the directors and dishonesty on the part of the late Adolph Dokken, cashier who committed suicide and for whose acts the directors are charged with responsibility, were responsible for heavy losses. It is charged the bank was insolvent prior to the time of its closing on July 11, 1932. It is also charged the bank failed to make good its reserves as required by law, due to "the mismanagement and fraudulent acts of managing officers," and that Dokken was permitted to manage the bank without furnishing sufficient bond. The defendants have denied all of the material allegations and contend

5. December 5, 1934 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, December 5, 1934

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Article Text

Suit Against Kindred Bank Directors Opens Fargo, N. D., Dec. 5.-(P)-Taking of testimony will get under way in Cass county district court Wednesday in the case in which the receiver of the closed Farmers and Merchants Bank of Kindred, N. D., is suing six directors charging negligence and mis panagement. The suit is for $305,000.