11053. Medina State Bank (Medina, ND)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
January 12, 1914
Location
Medina, North Dakota (46.894, -99.300)

Metadata

Model
gpt-5-mini
Short Digest
d5a1402181860694

Response Measures

None

Description

A run followed the failure of Wheelock & Wheelock (a Fargo real-estate firm that backed the bank) in January 1914; depositors demanded cash, the bank suspended payment and the state examiner took charge. A receiver was appointed in February 1914 and the bank remained closed (liquidation/receiver actions and later dividends reported), so this is a run leading to suspension and permanent closure.

Events (4)
1. January 12, 1914 Run
Cause
Local Shock
Cause Details
Failure/dissolution of Wheelock & Wheelock (Fargo real-estate firm) which were heavy stockholders/backers of the Medina bank triggered depositor uneasiness and withdrawals.
Measures
Bank officials withstood the rush until after noon, then suspended payment; called state bank examiner.
Newspaper Excerpt
Following the failure of Wheelock & Wheelock ... a run on the Medina State bank ... depositors began flocking to the bank, demanding their money.
Source
newspapers
2. January 12, 1914 Suspension
Cause
Local Shock
Cause Details
Suspension was the immediate result of the run caused by news of the insolvency/dissolution of Wheelock & Wheelock, major backers of the bank.
Newspaper Excerpt
As soon as the doors opened Monday morning the depositors began flocking to the bank ... then were compelled to suspend payment.
Source
newspapers
3. January 15, 1914 Other
Newspaper Excerpt
Bank Examiner S. G. Severtson has taken charge of the Medina State bank, at least temporarily, the result of a run on the institution ... considerable money was paid out when the bank officers closed the institution and called on the examiner.
Source
newspapers
4. February 23, 1914 Receivership
Newspaper Excerpt
Judge Coffey has appointed Michael Murphy of Jamestown as receiver of the Medina State bank which recently closed its doors.
Source
newspapers

Newspaper Articles (17)
1. January 13, 1914 Bismarck Daily Tribune Bismarck, ND
Article from Bismarck Daily Tribune, January 13, 1914

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MEDINA STATE BANK SUSPENDS ITS PAYMENTS Ruo OO Bank Follows Crash of Wheelock and Wheelock Knowledge That Insolvent Fargo Firm Backed It Caused Panic Medina, N. D., Jan. 12.-Following the failure of Wheelock & Wheelock, real estate dealers, Fargo, Saturday, a run on the Medina State bank, in which they were heavy stockholders, Monday, caused that institution to suspend payment on its paper. Saturday proceedings were instituted to have a receiver appointed for the real estate firm. This was taken by business men as an indication that the firm was insolvent. The announcement of this action when it reached Medina caused a feeling of uneasiness on the part of the bank depositors who knew that Wheelock & Wheelock were back of the local concern. As soon as the doors opened Monday morning the depositors began flocking to the bank, demanding their money. Till after BOOR the officials of the bank withstood the rush, then were compelled to suspend payment. H. H. Wheelock was president of the bank. C. L. Campbell, vice president; A. W. Schroeder, cashier, and H. D. Crosby, assistant cashier. The deposits in the bank were reported as $52,306.57.

2. January 14, 1914 The Evening Times Grand Forks, ND
Article from The Evening Times, January 14, 1914

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RUN ON MEDINA BANK FOLLOWS DISSOLUTION Wheelocks Interested in Concern and Naming of Receiver Causes Alarm. Medina, N. D., Jan. 14.-Following the failure of Wheelock & Wheelock, real estate dealers, Fargo, a run on the Medina State bank, in which they were heavy stockholders, Monday, caused that institution to suspend payment on its paper. Saturday proceedings were instituted to have a receiver appointed for the real estate firm. This was taken by business men as an indication that the firm was insolvent. The announcement of this action when it reached Medina caused a feeling of uneasiness on the part of the bank depositors who knew that Wheelock & Wheelock were back of the local concern. As soon as the doors opened Monday morning the depositors began flocking to the bank, demanding their money. Till after noon the officials of the bank withstood the rush, then were compelled to suspend payment. H. H. Wheelock was president of the bank, C. L. Campbell, vice president; A. W. Schroeder, cashier, and H .D. Crosby, assistant cashier. The deposits in the bank were reported as $52,306.57.

3. January 15, 1914 The Evening Times Grand Forks, ND
Article from The Evening Times, January 15, 1914

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SEVERTSON IN CHARGE OF BANK State Examiner Assumes Control of Institution at Medina, N. D. Bismarck, N. D., Jan. 15.-Bank Examiner S. G. Severtson has taken charge of the Medina State bank, at least temporarily, the result of a run on the institution, which followed the failure of the firm of Wheelock & Wheelock of Fargo. H. H. Wheelock of the Fargo firm is president of the Medina bank and the failure of the land concern acused uneasiness in Medina and the demand by depositors for their cash. Considerable money was paid out when the bank officers closed the institution and called on the examiner. The exact status of affairs at Medina is not definitely determined yet. The bank had about $52,000 deposits.

4. January 16, 1914 The Washburn Leader Washburn, ND
Article from The Washburn Leader, January 16, 1914

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FRIDAY, JAN. 16, 1914 North Dakota State News It is reported that a gopher was trapped a few days ago in this state, also that several full grown snakes in active operation just over the line in Minnesota. Following the failure of Wheel ock & Wheelock, real estate dealers, Fargo, N. D. a run on the Medina Stte Bank, in which they were heavy stockholders, Monday caused that institution to suspend payment on its paper. Steamer Cobequid was racked to pieces on Trinity Rock six miles off the port of Maitland. The wreck occurred Tuesday morning in a heavy blizzard. The hundred and eight persons aboar were snatched from death in a thrilling rescue, which was the most brilliant rescue in the annals of the Atlantic coast. Hundreds are dead in the district about Kagoshima, Japan, through an earthquake and volcanic eruptions and tidal wave Monday. Strip of country 80 miles wide is completely buried in ashes. It is said that animals and birds were suffering from an abnormal uneasiness for several days prior to the disturbances. The annual meeting of the North Dakota Association of County Judges will be held in Jamestown on January 21. The address of welcome will be given by Pierre Blewell, mayor of that city. Judge Hanson of Fargo, president of the association, will give the response. Addresses by several prominent members will complete the program. Miss Kathryn Ensey formerly of Valley City and a graduate of the Normal school at that place sang for Madame Melba when the famous prima donna was at Portland, Ore., and was advised by her to prepareo for grand opera singing. She suggested that Miss Ensey come to Paris next summer, where she wolud be glad to see her and help her all she could. Attorney General Miller says that no error has been made in the commutation of the sentence of Joe Remington and his subse-

5. January 16, 1914 The Evening Times Grand Forks, ND
Article from The Evening Times, January 16, 1914

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SEVERTSON ASKS REORGANIZATION Hopes to Place the Medina State Bank on Firm Foundation. (Times Special Service) Medina, N. D., Jan. 16.-State Bank Examiner Severtson is still in charge of the Medina State bank which closed Monday when it was unable to withstand a run, and he hopes to bring about the reorganization of the institution. In a statement today Mr. Severtson said the prospect. for reorganiation were good. The bank closed during a run, caused by the failure of the firm of Wheelock & Wheelock of Fargo, who are interested in the bank.

6. February 12, 1914 The Ward County Independent Minot, ND
Article from The Ward County Independent, February 12, 1914

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Medina to Have New Bank. Medina.-Medina will have a new bank as the result of the state bank examiner taking charge of the affairs of the Medina State bank, after a run brought on by the failure of Wheelock & Wheelock of Fargo, who were interested in the institution. The new bank will open March 1. It will be known as the Farmers' State bank; the incorporators are S. F. Corwin, A, B. DeNault and H. T. Graves.

7. February 24, 1914 Bismarck Daily Tribune Bismarck, ND
Article from Bismarck Daily Tribune, February 24, 1914

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MURPHY RECEIVER OF MEDINA BANK Medina, N.D., Feb. 23.-Judge Coffey has appointed Michael Murphy of Jamestown as receiver of the Medina State bank which recently closed its doors. He has been here several days ngaged in straightening out the defunct bank's tangled affairs. ALEXANDER BAND REORGANIZES. Alexonder, N. D., Feb. 23.-The Alexander band has been re-organized with 18 members. E. B. Harkness is president, C. T. Tellefson secretary-treasurer, and Prof. E. J. O'Brien instructor.

8. March 3, 1914 Bismarck Daily Tribune Bismarck, ND
Article from Bismarck Daily Tribune, March 3, 1914

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Judge Coffey has appointed Michael Murphy of Jamestown as receiver of the Medina State bank, which recently closed its doors.

9. September 24, 1915 Sioux County Pioneer Fort Yates, ND
Article from Sioux County Pioneer, September 24, 1915

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Stock-holders May Have to Pay Jamestown.—Stockholders in the Medina bank face an assessment of 100 per cent upon their stock, under the order of the district court. The bank went to the wall several months ago, and the bank receiver is launching the actions against the stockholders in an effort to make the institution pay out. Proceedings were held under a state law that gives the bank receiver power to recover from stockholders in cases where banks fail and depositors face losses.

10. February 17, 1916 Jamestown Weekly Alert Jamestown, ND
Article from Jamestown Weekly Alert, February 17, 1916

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RECEIVER OF MEDINA BANK PAYS DIVIDEND Of Twenty-five Per Cent. to Creditors of Defunct Institution. Michael Murphy, the receiver of the Medina State Bank of Medina, North Dakota, has recently mailed checks to all of the creditors of the Medina State bank in payment of a 25 per cent. dividend upon claims filed and allowed by the court. This is in addition to full payment of all preferred claims. The total claims filed aggregated about sixty-five thousand dollars. The Medina State bank failed early in 1914, and Mr. Murphy, president of the Farmers & Merchants National Bank of Jamestown, was appointed receiver by the district court to wind up the affairs of the bank, which affairs were found to be in rather a complicated condition. Since that time the receiver and his attorney, John W. Carr, have been endeavoring to straighten matters out and to reduce the assets to cash. Most of the assets of the bank were found to be slow, and it has taken considerable time to reduce them to money. A considerable portion of the assets are still to be realized upon but are of doubtful value. An assessment of 100 per cent. was levied upon all stockholders of the bank and a considerable portion of this has been collected. The total amount to date paid in dividends exceeds $16,000 and the amounts paid creditors range from 39 cents up to $1,260.08, according to the various amounts of their respective claims.

11. April 6, 1916 Jamestown Weekly Alert Jamestown, ND
Article from Jamestown Weekly Alert, April 6, 1916

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WILL SUE BONDING COMPANY Stutsman County Commissionlety ers Order Action Taken. At a meeting of the county board, which adjourned Tuesday till May 2, the state's attorney was authorized to begin an action against the Dakota Trust company of Fargo to recover the balance of $3,775.22 for which the Dakota Trust company at Fargo is liable under a bond given the county for the deposit of this sum in the Medina State bank. The resolution to begin suit for the recovery of this amount was introduced by Mr. Krekow. All members of the board were present with the exception of Commissioner Murphy, who is absent from the city. The long delay in securing repayment on this bond and the reported intention of the bonding company not to pay the bond until certain litigation over the Medina State bank failure has been settled in the courts, has stirred the commissioners to take action. The general opinion seems to be that the bonding company is trying to have its case against the Medina State bank fought out in the courts at Stutsman county's expense, and there is no reason why the bonding company should not pay up its obligations regardless of the outcome of the other suits brought to recover the securities of the bank alleged to have been wrongfully taken therefrom. The following resolution was adopted: Resolution. Whereas, The County of Stutsman had on deposit with the Medina State Bank at the time of its failure the sum of $5,035.30; and whereas such deposit was protected by a bond for $5,000 given by the Dakota Trust company in favor of the county of Stutsman, and that the sum of $1,260.08 has been received from the receiver of said Medina State bank; Now, Therefore, Be it resolved by the board of county commissioners in regular session assembled that the state's attorney be and hereby is directed to commence an action against the Dakota Trust company to recover the amount still due the county on this deposit.

12. April 20, 1916 The Devils Lake World and Inter-Ocean Devils Lake, ND
Article from The Devils Lake World and Inter-Ocean, April 20, 1916

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# SUIT AGAINST # GOV. HANNA # DISMISSED JUDGE POLLOCK HOLDS MEDINA BANK RECEIVER FAILED TO PRESENT CASE. A sweeping vindication from the charges hurled at Governor L B. Hanna, E J. Weiser and the First National Bank of Fargo through the Non-Partisan Leader was made yesterday morning when Judge Charles A Pollock of the district court handed down a decision sustaining the demurrer of the defendants in the case of Michael Murphy of Jamestown, N D., receiver of the Medina State bank. The decision is the outcome of a suit started in Burleigh county to recover $50,000 from the defendants for breach of a contract by which it was claimed the defendants agreed to finance and support the Medina State bank, which was on the verge of insolvency. No Cause for Action The court holds that, on his own pleadings, the receiver has no cause of action, whatever, against the defendants. The grounds given by Judge Pollock for sustaining the demurrer were: First, that the contract relied upon was ultra vires (beyond the power of the bank to make) and wholly void; and second, that the contract in the complaint sued upon was void and of no effect because it was wholly uncertain and indefinite in its terms. The effect of the decision is that the receiver of the Medina State bank has no claim whatever and the action is thereby dismissed Political Charges Negatived Charges made by the Nonpartisan Leader that E. J. Weiser of the First National bank, and L. B. Hanna, chairman of the state banking board, looted the Medina bank are negatived by the decision, which holds that the dealings of the defendants with the bank were legal and proper and that the receiver under his own statement in his complaint has no cause of action against them. Attorneys in the case were O. J. Seiler and John Carr of Jamestown, with the firm of Purcell, Divet & Perkins of Wahpeton, for the receiver; Watson, Young & Connty for the defendants. Further Charges By the Leader. Further charges made by the Non-partisan Leader seemingly solely for political purposes were that the Medina bank had long been known by the state bank examiner to be in an unsound condition and that the failure was directly due to the failure a few days before of Wheelock & Wheelock, a Fargo real estate firm, which owned the bank's stock. The Leader further contended that the big banks got the money; that the First National bank of Fargo, of which L. B. Hanna was then a director, failed to keep the promise which its cashier, Gordon H. Nesbit, had made under oath, and that the First National bank a mocth before the failure had carried on its books an entry designed to make it appear that the surplus of the Medina bank was up to legal requirenients when it was not, also that Governor Hanna in his private capacity ag a banker knew the condition of the bank,

13. April 27, 1916 The Devils Lake World and Inter-Ocean Devils Lake, ND
Article from The Devils Lake World and Inter-Ocean, April 27, 1916

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schedules which contain no items. For the first time farm fences, fall plowing, property of secret societies, household pets and scores of other items will be assessed this year. No longer will property owners be able to give a "lump sum" to the assessor. Every item has to be listed at 25 per cent of a fair market value, except moneys and credits, which go in at 5 per cent. John Roland of Stanley will be compelled to face the charge of first de gree murder as the result of the death of Harry Wolcott. His wife also is accused as being an accessory to the crime. The charge of murder was placed against Roland after the board of insanity commissioners had investigated Roland's mental condition and declared him sane. At the preliminary examination before O. M. Kline both Roland and his wife were bound over for trial. Bail was refused. Mrs. Irene Puarie of Slim Buttes was accidentally shot and killed by a young homesteader for whom she had been caring during an illness. The patient and another young man had quarreled during the day and in the evening, when the homesteader was aroused from sleep by a noise just outside the door of his home, he demanded to know who was there. Receiving no answer, and thinking it was the man with whom he had quarreled, he shot through the door and killed Hrs. Puarie. The coroner's jury exonerated him. The payment of $8,000 by the Consolidated Elevator company of Duluth to W. H. Stutsman, chairman of the North Dakota railway commission, saved the holders of $25,000 worth of storage tickets, issued at Davey and Walum, by the North Dakota Grain company, from losses, it was an nounced. The payment was made under the provisions of the law that the purchaser of stored grain must make good to storage ticket holders. The North Dakota commission traced the grain sold by the North Dakota Grain company to the Consolidated Grain company and the latter institution paid up. Thursday, Friday and Saturday, May 18, 19 and 20, have been selected for the annual North Dakota high school conference, athletic meet and debating and declamatory contest to be held at the state university in Grand Forks. The first day will be given over to the high school conference proper. Friday forenoon Inspector R. R. Edwards will conduct a round table on topics relating to smaller high schools. The athletic field tryouts will be held Friday and the finals on Saturday. The debating contest will take place Friday evening, when the state championship will be settled. On Friday evening the state declamation contest will be held. Twenty thousand coyotes have been slaughtered in the past year, according to the bounty statistics given out by Carl O. Jorgenson, state auditor. The auditor has just completed payment of $50,000 in bounties to the slayers of the coyotes. There was some' irregularity" in the bounty fund, brought about by a legislative transfer of a portion of the money previously levied for wolf bounty purposes, and that fact was responsible for the inability of the state to make payment for the past year, until the present time, the funds now being available through the collection of new taxes. The state pays a bounty of $2.50 for each wolf killed. The crack squad of the cadet battalion of the North Dakota Agricultural college will again go on the vaudeville stage this coming summer, making a tour of approximately 3,000 miles, and this time going through the East. The squad, which scored such a hit at all theaters where it showed last summer through the West, will leave Fargo immediately after the college closes in June. The tour will open in New York, where the equad will show for three consecutive weeks. The tour will then take it to Providence, Boston, Philadelphia, Baltimore, Washington and other important centers in the East. The tour will take thirteen weeks, all told. Judge C. A. Pollock at Fargo has ordered the dismissal of the action launched by the receiver of the Medina State bank against Governor L. B. Hanna, E. J. Weiser of Fargo and the First National bank of Fargo. Judge Pollock's dismissal on a demur rer to the complaint was on the find ing that the plaintiff failed to state any cause for action. Its demand for $50,000 for paper which it asserted was removed from the bank just before it was closed was held unjustified. The court holds that on his own pleadings the bank receiver has no cause for action Certain contracts

14. April 28, 1916 Bismarck Daily Tribune Bismarck, ND
Article from Bismarck Daily Tribune, April 28, 1916

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Fargo, sustaining the demurrer of the defendants in the action brought by Michael Murphy, receiver of the Medina State bank as plaintiff, against the First National bank of Fargo, and Governor L. H. Hanna as a director, and E. J. Weiser, president, will probably be appealed. The court sustained the demurrer on the grounds that the First National bank had not the power to enter into a contract to keep the Medina bank supplied with money and prevent its failure, as alleged by which the Fargo bank was allowed

15. May 12, 1917 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, May 12, 1917

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HANNA LOSES ROUND IN FAMOUS MEDINA BANK LITIGATION Former Governor L. B. Hanna and the First National bank of Fargo lost a round in the famous Medina bank case litigation this afternoon, when the supreme court of North Dakota reversed the Cass county district court order sustaining a demurrer to the complaint, filed by Receiver Murphy, and remanded the case to the lower court. This means that the case will come up for trial on its merits in the Cass county court. The action arises out of the closing of the Medina bank. The receiver contends that former Governor Hanna and the First National bank of Fargo failed to come to the rescue of the institution as they had planned.

16. May 14, 1917 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, May 14, 1917

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# Supreme Court Decisions From Cass County. Michael Murphy, receiver of the Medina State bank, plaintiff and appellant, vs. L. B. Hanna, E. J. Weiser, and First National bank of Fargo, a corporation, defendants and respondents. Syllabus: 1) In an action to recover damages for breach of an alleged executory contract to loan money where the complaint alleges no facts from which it can reasonably be inferred that the borrower had agreed to borrow any sum of money, or if borrowed, to retain the same for any period of time, paying interest therefor, the complaint states no cause of action for breach of a bilateral executory contract. (2) A complaint which alleges the understanding, with which, and the circumstances in which, parties were negotiating for a loan of money from one to the other, and where it further alleges acts done in pursuance of such understanding, which acts involve a detriment sustained by the one desiring to borrow money, which detriment is incurred in reliance upon the promise of the other to loan, the complaint states a cause of action for a breach of a unilateral contract obligation. (3) Where a complaint alleges that it was agreed between plaintiff and defendants that plaintiff should turn over to the defendants bills receivable approved by them, which they were to hold as security for a loan of money to plaintiff to enable plaintiff to continue its business, thus preventing the sacrifice of its assets and the loss of its good will, and that, in pursuance of this agreement plaintiff turned over to the defendants its bills receivable selected by them, of the alleged value of about $20,000, which bills receivable are alleged to have constituted the assets of the plaintiff that could be speedily converted into cash, and where it is alleged that defendants thereupon repudiated their agreement and refused to advance any money to plaintiff, such complaint states a cause of action for breach of contract. (4) Where a contractual obligation results from the conduct of parties in pursuance of an understanding or agreement, which understanding or agreement by reason of lack of mu-

17. May 17, 1917 Jamestown Weekly Alert Jamestown, ND
Article from Jamestown Weekly Alert, May 17, 1917

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CASES DECIDED FROM STUTSMAN COUNTY Syllibus in the Medina Bank Case. Following is the syllabus of the supreme court's decision in the Medina State Bank case: Michael Murphy, Receiver of the Medina State Bank, plaintiff and appellant, vs. L. B. Hanna, E. J. Weiser, and First National Bank of Fargo, a corporation, defendants and respondents. Syllabus: (1) In an action to recover damages for breach of ar alleged executory contract to' loan money where the complaint alleges no facts from which it can reasonably be inferred that the borrower had agreed to borrow any sum of money, or if borrowed, to retain the same for any period of time, paying interest therefor, the complaint states no cause of action for breach of a bilateral executory contract. (2) A complaint which alleges the understanding with which, and the circumstances in which, parties wore negotiating for a loan of money from one to the other, and where it further alleges acts done in pursuance of such undertaking, which acts involve a detriment sustained by the one desiring to borrow money, which detriment is incurred in reliance upon the promise of the other 'to loan, the complaint state3 a cause of action for a breach of a unilateral contract obligation. (3) Where a complaint alleges that it was agreed between plaintiff and defendants that plaintiff should turn over to the defendants bills receivable approved by them, which they were to hold as security for a loan of money to plaintiff to enable plaintiff to continue its business, thus preventing the sacrifice of its assets and the loss of its good will, and that, in pursuance of this agreement, plaintiff turned over to the defendants its. bills receivable selected by them, of the alleged value. of about $20,000, which bills receivable are alleged to have constituted the assets of the plaintiff that could be speedily converted into cash, and where it is alleged that defendants thereupon repudiated their agreement and refused to advance any money to plaintiff, such complaint states a cause of action for breach of contract. (4) Where a contractual obligation results from the conduct of parties in persuance of an understanding or agreement. which understanding or agreement by reason of lack of mutuality of obligation does not amount to a mutually hind ing bilateral contract, it sential that the obligation shall be capable of precise measurement in advance. Its extent is controlled by the standard of reasonableness un-