Northwestern National Bank (Livingston, MT)

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NORTHWESTERN NATIONAL BANK OF LIVINGSTON CLOSES DOORS

Livingston Enterprise: The Northwestern National bank of Livingston failed to open its doors Thursday morning. A notice posted on the door announces the directors decided upon the closing and that a representative of the comptroller of currency is in charge. T. E. Harris, national bank examiner, arrived Wednesday night from Minneapolis to take charge of the institution. Deposits in the bank at the time of closing were approximately $160,000. The capital stock of the bank is $100,000. The deposits are nearly half city and state money and these funds, it is said, are covered by surety bonds.

Rumors of the pending closing of the bank were on the street late Wednesday night after a meeting of the directors had been held, decision evidently having been made earlier, Mr. Harris having left Minneapolis for Livingston Tuesday. No deposits were received by the bank Wednesday, but all money left for deposit was laid aside and will be returned to those entering such funds.

The Northwestern National, according to those connected with the institution, was in good shape to weather the storm had it not been for demands made upon it by bonding concerns, who it is said, were desirous of reducing the amount of bonds. The assets of the bank, it is believed, are sufficient to guarantee against a heavy loss by the depositors.

According to Mr. Harris a receiver will soon be appointed to take care of the assets of the bank and to work towards liquidation.

Because of the fact that Cashier Roy Krom was the treasurer for the Mutual Building & Loan association, a number of persons who are members were discussing the situation relative to this organization and in an interview concerning the deposits of the institution Mr. Krom said: "The amount of money on deposit for the Mutual Building and Loan association was very small, it being the policy of all such organizations to keep their funds loaned out on city property. The loss to this institution will be very small, if anything, and its business is not affected by the bank's closing."

Both Cashier Krom and Mr. L. H. VanDyck are out of the bank with its closing and neither announced yesterday their plans for the future. Mr. Krom said he expected to leave the first of the week to spend several days on his ranch near Billings and further than that his plans were not made. Mr. Krom is mayor of Livingston, having been elected at the regular city election the spring of 1923.

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Seventh Park County Bank Fails The Northwestern National Bank of Livingston, which suspended operations last Thursday morning, was the seventh banking institution to close its doors in Park county during the past two years. The bank carried $160,000 of deposits and was capitalized at $100,000. At the time of its closing L. H. Van Dyck, formerly of Gardiner, was president, and Roy Krom, mayor of Livingston, was cashier. The affairs of the bank have been placed in the hands of F. E. Harris, an examiner in the office of the comptroller of the currency at Washington.

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SURETY COMPANY PAYS CITY AMOUNT IN THE N.W. BANK

A draft for $9,754.88, representing the principal on deposit by the city in the Northwestern National bank at the time that institution closed its doors, and also the interest on that amount since that date, was received Monday afternoon by City Treasurer R. L. Bailie, from the American Surety Co. The company is represented in Livingston by the Brooks Realty Co.

The principle, according to Mr. Bailie, at the time the bank closed was $9,678.28, leaving the interest of $76.60, which was paid.

The draft was sent direct to City Attorney Vilroy C. Miller, who was instructed to execute the proper vouchers with the city treasurer. The Surety company now becomes a preferred creditor with the Northwestern National bank receiver, under the laws.

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REPRESENTATIVES OF BROTHERHOOD BANK SPEND WEEK HERE

With the arrival in Livingston Tuesday of George Shivly, Cleveland, O., a representative of the National bank, operated by the Brotherhood of Locomotive Engineers, and also the coming of Messrs. C. C. Steel, Thomas Lefevre and Sherman Cook, of Three Forks, officers for a banking house conducted by the same people in that city, interest in Livingston is renewed as to the proposal made to the brotherhood concern relative to the purchase of the assets of the Northwestern National bank recently closed in this city.

While none of the visitors representing the banking fraternity had anything to give out for publicity concerning the proposed deal, it is generally believed that the visit at this time is to go over carefully the assets of the closed bank to determine the value of the paper and the advisability of proceeding with a transaction through which a bank similar to that at Three Forks will be opened in Livingston with a view to taking over the closed institution.

The visiting bankers said they might have an announcement to make at a later date but that there is nothing to give to the press just at this time. They expect to remain in the city during the remainder of the week, according to one of their number, and during this time will be engaged in conferences at the Northwestern bank with Receiver Sanderson.

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Receiver John A. Sanderson of the closed Northwestern National bank announced Friday that payments in liquidation of liabilities of the closed banking house to be made about March 1, will amount to approximately $120,000. This is the first dividend to be paid since the bank closed Aug. 28, and is one of the largest dividends to be announced by any bank that has closed in the state within recent years. It is confidently expected, according to the receiver that other dividends will be announced from time to time, or that the business transaction pending between the bank and the Railroad Labor Bank of Columbus, Ohio, will be completed as a result of the lowering of the liabilities and thus make the deposits chargeable against the institution subject to the immediate use of the creditors.

The sum, $120,000 quoted by Receiver Sanderson includes the bank's paper redeemed and deposits made with the Federal Reserve department, a goodly sum of which is included in the money represented by dividend checks to be mailed out about March 1.

In keeping with the rules governing the payment of dividends by the receiver for a defunct national bank, Receiver Sanderson has prepared the checks and with the schedule for payment, and only the formality of approval and return is necessary before actual payment will be made.

The checks to be paid out in Livingston are of varying denominations ranging from as low as 25 cents to one or more checks that will be in advance of $10,000.

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DEFUNCT LIVINGSTON BANK TO PAY THIRTY PER CENT DIVIDEND Livingston.-A divident of 30 per cent for the defunct Northwestern National bank of this city was announced for March 1 by Receiver John A. San derscn Friday afternoon. The checks and schedule for payment are expected back from Washington, where thev were sent for approval, within a few days. Reclaimed bank paper and the deposit with the federal department to cover the first dividend amount to $120,000. Checks ranging from 25 cents to $10,000 are included in the dividend to be paid, the receiver said. The Northwestern bank closed its doors Aug. 28, 1924.

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Failed Bank Paying Out.

A dividend of $30,000 for the failed Northwestern National. of Livingston, has just been paid to depositors by the receiver.

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John A

Sanderson, receiver for the Northwestern National bank at Livingston, was notified that he has been named receiver for the First National bank at Wilsall in addition to his duties with the local defunct banking institution. The books and records of the Wilsall bank will be brought to Livingston and the receivership will be administered from that city, Mr. Sanderson sald. A small army of 1,300 men will be available in the national forests of western Montana and Idaho for fire prevention and protection work. Two thousand three hundred and twenty-eight special use permits were issued last year by officers of district No. 1, of the forest service, a report just made public show. These were for many purposes. A bond Issue of approximately $330,000, to be used for the redemption of poor fund warrants, was sold at Butte to the Ohio firm of Stranham, Harris & Otis which submitted the best of nine bids. The Issue brought a premium of $2,161.50. The bonds run from one to 20 years. That Boseman is getting her share of tourist travel is revealed by statistics complied from, the 1924 records of the Bozeman tourist park. Last season 3,251 cars registered at the park, with a total of 10,269 people. More than 2,000 tourists stopped in the city for a period of one day or more. One tourist is reported as having spent $300 for merchandise at one store. I. M. Brandjord, of Ronan, who has taken office as register of state lands, began to accustom himself to his duties under the tutelage of H. V. Balley, whom he will succeed. C. S. Hall of Libby has application pending for a patent on an improved railroad spike which will not work up and become loose. The Invention tias found favor with Great Northern officlais, It is said, who have requested that samples be left with them in order that the spike could be demonstrated to a St. Paul official who expects to visit in Spokane soon.

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RECEIVERSHIPS CONSOLIDATED Livingston-John A

Sanderson, receiver for the Northwestern National Bank, was notified that he has been named receiver for the First National Bank at Wilsall in addition to his duties with the local institution. The books and records of the Wilsall bank will be brought to Livingston and the receivership will be administered from this city. The Wilsall bank closed a year ago and at that time W. W. Brandt of the comptroller's department was sent from Minneapolis, to serve as a receiver. With the new appointment Mr. Brandt is released from further duty and after a visit to his home in Minnesota will probably be sent south, it is said.

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BOURQUIN FROWNS

ON RECEIVERSHIPS

OF LONG DURATION

HELENA.-Tendency of bank receiverships to continue for long periods of time was frowned upon by Judge George M. Bourquin in federal court here when he denied the motion of Attorney J. R. Wine for continu-ance to the next term of the case of John A. Sanderson, receiver of the Northwestern National Bank of Livingston, against Vilroy C. Miller. The court ruled that the case should be tried as soon as possible, inasmuch as funds involved represent the property of depositors.

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Park County Bank Pays 103 Per Cent To All Creditors Livingston, Jan. 9. - Creditors of the Northwestern National bank are assured of 103 cents on the dollar, Receiver V. P. Wright estimated Monday on receipt of a check for $35,000 from former State Senator A. W. Miles, Livinston. Senator Miles purchased all the assets of the bank, of which he was a stockholder and director, when it closed about two years ago.

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Defunct Bank Will Pay 103 Percent, Declares Receiver

LIVINGSTON Feb of 20 and percent are ready for creditors the Northwestern Nationat bank. Livingston. Receiver C. P Wright announces. There been six and these lotments bring the total to 103 percent The bank closed 27. 1927 Payments must be called for. Mr Wright said. within two weeks. when the receivership will be closed