11005. First National Bank (Lakota, ND)

View Charter #4143 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
4143
Charter Number
4143
Start Date
May 29, 1893
Location
Lakota, North Dakota (48.043, -98.336)

Metadata

Model
gpt-5-mini
Short Digest
b862dea4af613758

Response Measures

None

Receivership Details

Depositor recovery rate
30.0%
Date receivership started
1893-06-13
Date receivership terminated
1904-05-07
OCC cause of failure
Excessive lending
Share of assets assessed as good
18.8%
Share of assets assessed as doubtful
77.7%
Share of assets assessed as worthless
3.4%

Description

The First National Bank of Lakota (N.D.) was closed by order of the Comptroller/National Bank Examiner on May 29, 1893 due to unsafe management/insolvency (E. Ashley Mears system). A receiver was appointed in mid-June 1893, indicating permanent closure rather than a temporary suspension and reopening. No article describes a depositor run; closure was by government action following examiner orders and alleged violations of law.

Events (4)
1. October 23, 1889 Chartered
Source
historical_nic
2. May 29, 1893 Suspension
Cause
Government Action
Cause Details
Closed by the Comptroller of the Currency / National Bank Examiner on orders citing revealed violations of law, insolvency, and inability to realize upon loans; unsafe management tied to E. A. Mears.
Newspaper Excerpt
The First National Bank of Lakota was also closed. ... were closed to-day on orders issued by the comptroller of the currency.
Source
newspapers
3. June 13, 1893 Receivership
Source
historical_nic
4. June 13, 1893 Receivership
Newspaper Excerpt
Charles M. Wilson, receiver of the First National Bank of Lakota, North Dakota.
Source
newspapers

Newspaper Articles (13)
1. May 30, 1893 The Record-Union Sacramento, CA
Article from The Record-Union, May 30, 1893

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Article Text

BUSINESS SUSPENDED. Two Banks at Fargo, North Dakota, Closed. FARGO (N. D.), May 9.-The National Bank of North Dakota, of which E. A. Mears is President, was closed to-day by the National Bank Examiner, under orders from the Comptroller of Currency. The First National Bank of Lakota was also closed. The examiner will give out no statement of the assets or liabilities. Cashier Mears announces that the total indebtedness does not exceed $60,000, with assets of five times the amount. The bank officers state that the cause of the trouble is the large loan business and the fact that it is impossible at present to realize upon the securities. Individual deposits at the time of the last statement, May 4th, were only $3,243; demand certiticates, $4,452; time certificates, $14,229; national bank notes outstanding, $45,000; notes and bills rediscounted, $22,114, and bills payable, $16,000. At that time the bank only had as cash on hand $440 in legal tender notes and $49 in fractional currency. The statement was not published in any of the daily papers, but in the Weekly Republican, so few people saw it. Among the resources given were loans and discounts, $184,373; United States bonds, $30,000; stock and securities, $46,769; banking house and furniture, $5,451; real estate and mortgages owned, $34,999. The closing of the bank will have no effect upon the business of the city or county. It was merely a clearing house for a system of loan agencies. It had no depositors to speak of in this city or State, and what little money was there will undoubtedly be paid in full.

2. May 30, 1893 The Helena Independent Helena, MT
Article from The Helena Independent, May 30, 1893

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IN THE FAMILY. The Way in Which the Mears Family Or. gauised Banka WASHINGTON, May 29.-The National Bank of North Dakote, as Fargo. N. D., and the First National band of Lakota, as Lakota. N. D., were closed to-day on orders issued by the comptroller of the currency. Both were organized by E. Ashley Mears, who was also organizer of other national banks and many state banks and other institutions. His plan. sayn the comptroller, appears to have been to make loans to various institutions subscribing to the stock of the two national banks in amounts which, in some cases, exceeded the amount of stock subscribed to by them. The management of Faigo bank was ostensibly conducted by n board of five directors, consisting most of the time of E. Ashley Mears, Mrs. W. B. Mears, Mrs. D. C. Meais and Miss L. D. Mears, respectively wife, mother and sister of the president, and one other director who was not a member of the Mears family. This bank owes the treasurer of she United States about $14,000 for moneys expended br the treasurer in the redemption of circuiating notes of the bank coming into the treasury for redemption, and for which the bank has failed to reimburse the treasurer. The comptroller says he ordered Examiners Brush and Diamond to close these banks because of reveated violations of law on the part of the management and refusal of assossments, thereby producing a condition rendering them insolvent and dangerous as banks of deposit. OTTUMWA. Iowa, May 29. Wells & Garretson, private bankers at Fairfield. suspended payment to await the result of collection. Their total liabilities are about $50,000 and $80,000. The senior member of the firm is C. A. Garretson, a millionaire, formerly of Musoatine and Bioux City. and now of San Diego, Cal. He has no immediate part in the management. Wells saye they will probably resume payment as soon as reply can be had from Garretson, or sooner. if collections can be made on matured paper in the bank. CHICAGO, May 29.-An assignment was filed in the cours this morning by Weaver, Gaetso & Co., one of the largest coal dealing firms in the city. The liabilities are scheduled at $250,000. and the assets $200,000.

3. May 30, 1893 Wheeling Register Wheeling, WV
Article from Wheeling Register, May 30, 1893

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CONCERNING BUSINESS AND FINANCE. ROCHESTER, N. Y., May 29. ).-The Yates schedules were filed this morning. They show total assets, nominal value $3,913,984.59; actual value $2,616,626.30; total indebtedness $2,757,040.17; contingent liabilities $1,361,823.76; total liabilities $4,118,863.93. The secured liabilities amount to $1,250,323.94. The assets hypothecated to secure this indebtedness leave only about $500,000 with which to meet unsecured and contingent claims. The unsecured liabilities amount to $1,506,716.23, and the contingent as already stated to $1,361,823.76. RUTLAND, VT., May 29.-The run on the Rutland Savings Bank was resumed this morning, and is assuming a more serious turn. When the doors were opened at 9 o'clock a number of persons were waiting, and the number has been considerably increased since. The bank is prepared for any emergency. CHICAGO, May 29. - The formal assignment of the embarrassed firm of Weaver, Getz & Co., coal dealers, was filed this morning. Liabilities are scheduled at $250,000 and assets at $200,000. NEW YORK, May 29.-Arrangements have been made to ship $2,500,000 gold by the mid-week steamers in addition to the $1,000,000 already engaged for the Aller. NEW YORK, May 29.-Lazard Freres will ship $1,000,000 gold on the Aller, which sails to-morrow. FOSTORIA, O., May 29.--Secretary Foster desires to announce through the press that he is physically unable to answer the hundreds of letters and telegrams of sympathy which have poured in on him during the past few days. He takes this method of making a general acknowledgment of these kind expressions. ST. PAUL, MINN., May 29.-A special from Fargo, N. D., says the National Bank of Ashley Meads was closed to-day by the National Bank Examiner. The First National Bank of Lakoan, N. D., also failed. Indebtedness does not exceed $60,000, with assets five times that amount. CHICAGO, May 29.-The Commercial National Bank has begun suit here to foreclose a mortgage for $500,000 given by the Chicago and Eastern Illinois Railroad Company.

4. May 31, 1893 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, May 31, 1893

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Article Text

We observe that the National Bank of North Dakota, located at Fargo, and the First National Bank of Lakota, of Lakota, N. D., have both been closed by the Comptroller of the Currency. These banks were both run by E. A. Mears. For some years past Mears has sent circulars east giving a very roseate view of his institutions and soliciting investments. Mears seems to have been the Dwiggins of North Dakota. A lot of little bank were established by him in various parts of that state, Eastern men having been induced to take stock in them by the promise of 12 per cent interest. Since 1891, however, no dividend has been paid. None of these banks had over $30,000 or $40,000 on deposit, and the most of them not so much.

5. June 1, 1893 Belmont Chronicle Saint Clairsville, OH
Article from Belmont Chronicle, June 1, 1893

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GENERAL NEWS NOTES. Items of Interest Gathered From Various Quarters. s Lewis Abbott, aged 17, shot himself at Atlanta, Ga., because his father told him to quit thinking about the girls. S. M. Wheeler, proprietor of a hotel y at Orrville, is missing. Commissioner Massey, of Delaware, has resigned from the World's Fair 1 Board because the gates were voted open on Sunday. t Two coal operators at Lancaster have brought suit against the Hocking Valley Railroad because the latter cars to their furnish the former ship would not coal. Carnet, Kas., was struck by a tornado on Thursday. The United Presbyterian General Assembly is in session at Monmouth, Ill. The North Baltimore Furniture Co. has gone to the wall for $50,000. Adam Kapple was killed at Mummaville by being jerked off his feet by a cow which he was leading, and falling so as to break his neck. Believing his wife to be unfaithful, John Simison, proprietor of the hotel at New Waterford, Columbiana county, swallowed two ounces of laudanum and will hardly recover. Misses Ethel May Sellers and Carrie Logan, both of respectable parents, are mysteriously missing from their homes at Lebanon, and their friends are much concerned over their absence. Daniel Wynohan, publisher of the Toledo Public Record, was thrown in front a car a barof moving electric by tender named Charles Strohmeir and almost killed, the result of asaloon row. Ex-Governor Foster has assigned for the benefit of creditors. Liabilities $800,000; assets much less. years has as a one Fred lived Matthews, hermit, who allowing for thirty no to enter his hut, died near Ashland. An injunction to restrain the World's Fair managers from opening the gates on Sunday, has been asked for. Hoke Smith has issued an order in regard to pensions requiring the disability, not of service origin, to be such as to prevent the applicant from earning a support by manual labor. At Roanke, Ind., Christian Haberkers killed his wife because she was a Catholic, set fire to his house and then killed himself. A colony of Mohammedans are arranging to Bettle in Georgia. F. H. Milburn, a son of the blind chaplain of the U.S. Senate, committed suicide at the Saratoga Hotel, Chicago. The World's Fair was opened on Sunday. About 173,000 people attended. Cholera has again made it appearance in Hamburg. Frederick Berry, an orphan boy at Lima, committed suicide because he was sick. A number of gate keepers at the World's Fair have been discharged for withholding tickets. The Comptroller of the Currency has ordered closed the First National Bank at Fargo, N. D., and the First National Bank at Lakota, N. D. John Hoy butchered his wife and two children at New Haven, Pa., and ended up by cutting his own throat. Foster may be able to effect a settlement with the creditors of Foster & Co. so that the bank can resume. The New York Central is running a train from New York to Chicago in 20 hours. Main's show was wrecked near Tyrone, Pa., and five people were killed and ten injured on Tuesday morning. The train bearing the remains of Jeff Davis reached Richmond Tuesday night. President Cleveland has gone to Hog Island to fish. He left Washington on Decoration Day. The Montana silver statue at the Fair was unvailed Tuesday. Mrs. James G. Blaine, Jr., has married her physician, Dr. Bull.

6. June 1, 1893 The Princeton Union Princeton, MN
Article from The Princeton Union, June 1, 1893

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BAD HALF BREEDS THEY ARE CHARGED WITH MAKING FALSE ENTRIES. Uncle Sam Working Up nn Interesting Case in North Dakota-Ashley Mears Connected With the CaseTwo of His Banks Closed. Washington, May 30.-An interesting case is now being worked up by the department of justice and the general land office for trial at Grand Forks, N. D., in the United States court. The government is trying to establish a case against the half-breed Indians about Rollette county on grounds of fraudulent entries. The claim is that the half-breeds were induced by Ashley Mears to go upon the lands, make proof, mortgage them to Mears and then he disposing of the mortgage in the East, and the half-breeds in order to do this were guilty of forgery. The district attorney of North Dakota, assisted by special agents of the general land office, is now working at the case, and an early trial is expected at Grand Forks. This Mears who is mentioned in connection with the case has been running banks in North Dakota. The purchasers of these mortgages will be protected by a law passed two years ago which protects innocent parties. Fargo, N. D., May 30.-The bank of E. Ashley Mears here was closed by the national bank examiner, under orders from the controller of the currency. The First National Bank of Lakota was also closed. The examiner will give out no statement of assets or liabilities. Cashier Mears announces the total indebtedness does not exceed $60,000, with assets of five times that amount. The statement in May showed less than $500 cash on hand.

7. June 2, 1893 Bismarck Weekly Tribune Bismarck, ND
Article from Bismarck Weekly Tribune, June 2, 1893

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MEARS IN LIMBO. The Fargo Banker, With a Financial System of His Own is Finally Run Down. By Order of the Comptroller of the Currency, Examiner Diamond Closes the Doors. Score of State Banks Depending On the Parent Likely to Follow Suit. Mears' Bank Goes Up. FARGO, May 29.-The National Bank of North Dakota was to-day closed by order of the comptroller of the currency, and is now in the hands of Bank Examiner Diamond. It was controlled by E. Ashley Mears, who manages a dozen other national and state banks in North Dakota. The institution never had the confidence of the people of the state, but drew its patronage from the east. Its failure will not affect Fargo institutions, the other banks of the city not having had any intercourse with the one which failed. The First National Bank of Lakota was also closed to day. This is another Mears bank. Examiner Diamond refuses to make known the assets and liabilities of the institution until the affairs of the network of banks are straightened. .Mears' methods have long been criticized in the state, and it is hinted he will lose nothing by the failure, eastern stockholders being the ones to suffer.

8. June 7, 1893 The Advocate and Topeka Tribune Topeka, KS
Article from The Advocate and Topeka Tribune, June 7, 1893

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OUR PROSPERITY COLUMN. FOSTORIA, O., May 29.-Saturday night the N. Ports Hardware Company, in which ex-Governor Foster is interested, made an assignment and Port's farm in the oil region was attached. BROWNWOOD, TEX., May 27.-The First National bank of this city has suspended and 8 receiver will be appointed. The amount of assets and liabilities is not given. It is said by the directors that the depositors will be paid in full, but the stockholders will lose all. KANSAS CITY, May 29.-The Farmers' & "Merchants' Lumber Company yards at Kansas City, Kas., was seized to-day by George L. Chapman, 8 capitalist of Pittsburg, Pa., under a chattel mortgage. The mortgage under which the seizure was made was executed several months since, when S. B. Baker, a wealthy lumber dealer of Chicago, who owns the yards, borrowed $100,000 from Chapman, executed his note for the amount secured by the yards here and also some valuable realty in Chicago. The seizure was prefaced on Sunday morning, when S. Baker executed a mortgage on property in Kansas City, Kas., and in various other parts of the state in favor of the National bank of Chicago, to secure the payment of certain obligations due and soon to be due the bank. OTTUMWA, IA., May 29.-Wells & Garretson, private bankers at Fairfield, have suspended payment to await the result of collections. The deposits are small and the suspension was not unexpected. The liabilities are $50,000; assets over $80,000. CINCINNATI, May 29,-A. Steinon, a prominent jeweler, has assigned to Albert Mac. Assets, $65,000; liabilities, $72,000. MACON, Mo., May 29.-The Loomis Coal Company, of Bevier, Mo., went into the hands of a receiver this afternoon. A correct statement of the affairs of the concern have not been given out, but it is known the assets will amount to $300,000, and that the liabilities will exceed that amount. CHICAGO,May -Unable to get financia 1 help from local banks, Weaver, Getz & Co., coal dealers, with headquarters at 217 and 219 Dearborn street, have been driven to a temporary suspension, Their liabilities, consisting principally of indebtedness for coal throughout Ohio, Indiana and Illinois, will reach $300,000 it is said. WASHINGTON, May 29.-The National bank of North Dakota, Fargo, N. D, and the First National bank of Lacota, at Lacota, N. D., were closed to-day by orders issued by Mr. Eckels, comptroller of currency. Both these banks were organized by E. A. Ashley Mears, who is also the organizer of other national banks and of many state banks and other institutions. His plan, says the comptroller, appears to have been to make loans to various institutions, subscribing to the stocks of the two national banks in amounts which in some cases exceeded the amount of the stock sub. scribed to by them. The management of the Fargo bank was ostensibly conducted by 8 board of five directors, consisting most of the time of E. Ashley Mears and wife, mother and sister of

9. June 13, 1893 Evening Star Washington, DC
Article from Evening Star, June 13, 1893

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Bank Receivers Appointed. The controller of the currency has appointed receivers of insolvent national banks as follows: Joseph W. Bennet, receiver of the Oglethorpe National Bank of Brunswick. Ga. Charles M. Wilson. receiver of the First National Bank of Lakota. North Dakota. Elmer A. Howard, receiver of the First National Bank of Cedar Falls, Iowa. Henry H. Kerr, receiver of the First National Bank of Brady, Texas.

10. June 14, 1893 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, June 14, 1893

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A Receiver for Mears' Bank. WASHINGTON, June 13.-Comptroller Eckels has appointed receivers of insolvent national banks as follows: Charles M. Wilson, receiver of the First National Bank of Lakota, N. D.; Elmer A. Howard, receiver of the First National Bank of Cedar Falls, Io.

11. June 15, 1893 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, June 15, 1893

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A Receiver For Mears' Bank. WASHINGTON, June 15.-Comptroller Eckels has appointed receivers of insolvent national banks as follows: C. M. Wilson, receiver of the First National bank of Lakota, N. D.; Elmer A. Howard, receiver of the First National bank of Cedar Falls, Ia.

12. June 20, 1893 The Progressive Farmer Raleigh, Winston-Salem, Winston, NC
Article from The Progressive Farmer, June 20, 1893

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Bennett, receiver of the Oglethorpe National Bank of Brunswick, i Ga.; Charles M Wilson, receiver of the First National Bank of Lakota, N. D.; Eimer A. Howard, receiver of the First National Bank of Cedar Falls, Iowa, and Henry H. Kerr, receiver of the First National Bank of Brady, Texas.

13. July 12, 1902 The Washburn Leader Washburn, ND
Article from The Washburn Leader, July 12, 1902

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First publication June 7, 1902. NOTICE OF SALE Notice ls hereby given that by virtue of a judgment and decree in foreclosure, rendered and given by the District Court of the Second judicial district in and for the county of Ward and State of North Dakota and entered in the office of the Clerk of the District Court of the said Ward county on the 8th day of May; 1902 and docketed in the office of the Clerk of the District Court in and for McLean County in the State of North Dakota in an action wherein J.C. Aurland is named as plaintiff and Ct arles A. Rydall. Bank of Minot a corporation, First National Bank of Lakota a corporation. Bank of Lakota a corporation. Bank of Lakota a corporation, Bank of Towner a corporation, A. B. Guptill as Receiver of the Bank of Minot, McLean county a public corporation, the State of North Dakota a public corporation, Frank P. Hawkins, B-S. Brynjolfson, H. Dewess Ecton as Receiver of the Bank of Lakota are defendants in favor of the plaintiff and against the said Charles A. Rydall for the sum of $1,105.47 and a decree and judgment in foreclosure against all and each of the said defendants which judgment and decree among other things directed the sale by me of the real estate hereinafter described to, satisfy the amount of the said judgment with interest thereon and the costs and penses of such sale or so much thereof as the proceeds of such sale applicable thereto will satisfy. And by virtue of a writ of execution to me issued, directed and delivered therein directing me to sell the said real estate pursuant to said judgment and decree, 1. Allan McDonald, Sher'ff of McLean County North Dakota and the perosn appointed by the court to make said sale will sell the hereinafter described real estate to the highest bidder for cash at public auction at the front door of the court house in Washburn in the county of McLean and State of North Dakota on Monday the 21st day of July, 1902, at the hour of ten o'clock in the forenoon of that day to satisfy the said judgment with interest and costs thereon and the costs and expenses of such sale or so much thereof as such proceeds of sale applicable thereto will satisfy. The premises to be sold aforesaid pursuant to such judgment and decree, and said writ and this notice are described as follows, to-wit: The south half of the north east quarter and lots one and two of section six, in township one hundred forty-seven north of range eighty-one west of the Fifth Principal meridian and located in McLean County North Dakota. Dated June 2nd, 1902. allan McDONALD, Sheriff of McLean County, North Dakota. C. Aurland. Attorney for Plaintiff Minot, N. D. First Publication June 7. last July 19. 1902.