First National Bank (Chester, MT)

Episode Information

Episode Type
Suspension โ†’ Closure
Start Date
July 1, 1923*
Location
Chester, Montana (48.511, -110.967)
Bank Type
national
Charter Number
11105

Metadata

Receivership Details

Depositor recovery rate
1.4%
Date receivership started
1923-07-30
Date receivership terminated
1928-03-31
OCC cause of failure
Losses
Share of assets assessed as good
13.8%
Share of assets assessed as doubtful
41.2%
Share of assets assessed as worthless
45.1%

Notes

Articles state the bank suspended business in July 1923 and a receiver (Frank Browne) was appointed July 30, 1923.

Events (5)

1. November 30, 1917 Chartered
Source
historical_nic
2. July 1, 1923* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank suspended business in July 1923 prior to closing; transfers and insolvency issues cited in later litigation.
Newspaper Excerpt
recorded after the bank suspended business.
Source
newspapers
3. July 30, 1923 Receivership
Newspaper Excerpt
The case was brought ... by Frank Browne, who was appointed receiver July 30, 1923.
Source
newspapers
4. July 30, 1923 Receivership
Source
historical_nic
5. August 10, 1923 Other
Newspaper Excerpt
Notice is hereby given ... that the same must be presented to Frank Browne, Receiver, ... Aug. 10 to Nov. 2.
Source
newspapers

Newspaper Articles (10)

Article from The Chester Reporter, September 21, 1923

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TREASURY DEPARTMENT

Office of the Comptroller of the Currency, Washington, D. C. Aug. 10, 1923. Notice is hereby given to all persons who may have claims against "The First National Bank of Chester," Montana, that the same must be presented to Frank Browne, Receiver, with the legal proof thereof, within three months from this date, or they may be disallowed. (Signed) Henry M. Davis, Comptroller of the currency. Aug. 10 to Nov. 2.


Article from The Chester Reporter, November 22, 1923

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reference to the plaintiff's complaint on file in the office of the Clerk of the above entitled Court.

Dated this 1st day of November, 1923. (SEAL) GEORGE H. GAU, Clerk. Max P. Kuhr, Havre, Montana. J. B. Ryan, Spokane, Washington. Attorneys for the Plaintiff.

ALIAS SUMMONS IN THE DISTRICT COURT OF THE EIGHTEENTH JUDICIAL DISTRICT OF THE STATE OF MONTANA, IN AND FOR THE COUNTY OF LIBERTY.

Mary Katharine Reely, Plaintiff.

vs.

Ignac Stellner; The St. Anthony & Dakota Elevator Company, a corporation; The First National Bank of Chester, a corporation; Frank Browne, Receiver of The First National Bank of Chester; The Black Coulee Farmers Oil & Gas Co., a corporation; Defendants.


Article from The Liberty County Times, October 10, 1924

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No. 1865. SHERIFF'S SALE

In the District Court of the Eighteenth Judicial District of the State of Montana, in and for the County of Liberty. The Minnesota Loan and Trust Company, a corporation, Plaintiff. vs. John Keldrauk, Anna Keldrauk, The First National Bank of Chester, a corporation, Frank Browne, Receiver of The First National Bank of Chester, Liberty County, a Municipal corporation, and the County Treasurer of Liberty County, Sheldon Brothers Company, a corporation, Defendants. To be sold at Sheriff's Sale on the 25th day of October, A. D. 1924, at 9:15 o'clock A. M., at the front door of the court house in the town of Chester, in the said County of Liberty, the following property: East half (E 1/2) of section thirteen (13) in township thirty-three (33) north of range four (4) east of the Montana Meridian, containing 320 acres, more or less, according to the Government survey thereof, together with all the hereditaments and appurtenances thereunto belonging or in anywise appertaining.

Dated this 27th day of September, A. D., 1924. JOHN H. MORGAN, Sheriff. By MATT MORGAN, Under Sheriff. McKenzie & McKenzie, Great Falls, Montana. Attorneys for Plaintiff. (October 3-10-17-24)


Article from The Liberty County Times, October 10, 1924

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No. 1864. SHERIFF'S SALE

In the District Court of the Eighteenth Judicial District of the State of Montana, in and for the County of Liberty.

The Minnesota Loan and Trust Company, a corporation, Plaintiff. vs. Mike Laas, Maali Laas, The First National Bank of Chester, a corporation, Frank Browne, Receiver of The First National Bank of Chester, Hart-Parr Co., a corporation, John J. Yurman, Lothair State Bank, a corporation, and Hill County, a Municipal corporation, Glacier County State Bank, a corporation, and E. V. Day, Receiver of Glacier County State Bank, Defendants.

To be sold at Sheriff's Sale on the 25th day of October, A. D. 1924, at 9:10 o'clock A. M., at the front door of the court house in the town of Chester, in the said County of Liberty, the following property:

Lots one (1) and two (2) and the east half of the northwest quarter (E 1/2 NW 1/4 and the northeast quarter (NE 1/4) of section thirty-one (31) in township thirty-three (33) north, of range five (5) east Montana meridian, containing 319.40 acres, more or less, according to the United States government survey thereof, together with all the hereditaments and appurtenances thereunto belonging or in anywise appertaining.

Dated this 26th day of September, A. D., 1924.

JOHN H. MORGAN, Sheriff. By MATT MORGAN, Under Sheriff. McKenzie & McKenzie, Great Falls, Montana. Attorneys for Plaintiff. (October 3-10-17-24)


Article from Great Falls Tribune, March 26, 1925

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CHESTER BANK LAND TRANSFER DECLARED VOID

Receiver Wins Suit, Claiming Closed Bank Showed Preference to Depositors

Transfer of 2,686 acres of Hill and Liberty county land by the First National bank of Chester to Mary A. Stonach, a short time prior to its closing in July, 1923, was ordered annulled in a decision handed down Wednesday in the Great Falls federal court by Judge Charles N. Pray. The order was returned under the federal statute intended to void transfers made by a national bank after the commission of an act of bankruptcy, "or in contemplation thereof," with a view to giving one creditor preference over another.


Article from Great Falls Tribune, March 26, 1925

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Transfer of 2,686 acres of Hill and Liberty county land by the First National bank of Chester to Mary A. Stonach, a short time prior to its closing in July, 1923, was ordered annulled in a decision handed down Wednesday in the Great Falls federal court by Judge Charles N. Pray. The order was returned under the federal statute intended to void transfers made by a national bank after the commission of an act of bankruptcy, "or in contemplation thereof," with a view to giving one creditor preference over another.

Following the history of the case, Judge Pray's order relates that on July 3, 1923, 15 days before the bank closed, its officers transferred the land to Mrs. Stonach by warranty deeds that were recorded after the bank suspended business. Prior to giving the deeds, the decision continues, the bank owed Mrs. Stonach $17,000, represented by certificates of deposit, savings accounts and checking accounts. When the bank closed it owed nothing to Mrs. Stonach or her daughter, whose account also figured in the case.

Judge Pray held that the act of transferring the land to Mrs. Stonach showed an inclination to give her preference as a creditor of the bank and ordered the deed set aside. The case was brought against Mrs. Stonach by Frank Browne, who was appointed receiver July 30, 1923.

The bank's liabilities at the time of closing totaled $230,000, and the assets had a face value of $266,000. The receiver held that the assets had an actual value of $66,117, leaving a deficiency of approximately $165,000.


Article from The Great Falls Leader, March 27, 1925

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BEST CITIZENS OF

(Continued from Page Eight.) rassing to send him to jail at this season of the year. "I have known him for six years, declared the attorney in speaking of his client to the court, "and can vouch for him to the court. He is one of the best citizens of that section." Mr. Harris was fined $75. and went out to join the other Fergus county best citizens, according to court records of their attorneys, of the Judith Basin. The jury panel, other than those sitting on the Forester case, excused until 10 o'clock tomorrow morning. In the case against A. W. Wattam and Susie, his wife, charged with having brought aliens into the Unitell States from Canada, the jury late yesterday afternoon returned verdiot of not guilty after being out but a few minutes. Judge Pray suggested that In view of the evidence submitted and the statutes governing such cases that verdict of guilty might well have been expect ed, but that probably sympathy had much to do with the final result The defendants live at Fresno, out of Hare, and last September brought a niece and nephew from Canada to their ranch, ostensibly to visit them, when the niece, 21 and the nephew 19. had not received permission from the Canadian government to come across. P. P. Thompson, government emigration officer at Havre, stated after the a deportation order had been issued and that the two young relatives would be taken from the Wat. tam's and deported to Canada. The girl has no means of support in Canada, being separated from her husband while this side of the line her relatives give her a home and In the case of Frank Brown, recelver of the First National bank of Chester against Mary A. Stonach, Judge Pray handed down decision for plaintiff, ordering that the transfer of 2,686 acres of land in


Article from The Havre Daily News, March 27, 1925

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BROWNE WINS SUIT FOR BANK AT CHESTER

Frank Browne, as receiver of the First National bank of Chester. Wednesday won an important victory for the creditors of that institution in the federal court at Great Falls, when the transfer of 2.686 acres of Hill and Liberty county land by the First National bank of Chester to Mary A. Stonach. short time prior to its closing in July. 1923. was ordered annulled in decision handed down Wednesday in the Great Falls federal court by Judge Charles N. Pray. The order was returned under the federal statute intended to void transfers made by national bank after the commission of an jact of bankruptcy. "or in contemplation thereof,' with a view to giving one creditor preference over another. Following the history of the case, Judge Pray's order relates that on July 3. 1923. 15 days before the bank closed. its officers transferred the land to Mrs. Stonach by warranty deeds that were recorded after the bank suspended business. Prior to giving the deeds the decision continues. the bank owed Mrs. Stonach $17,000, represented by certificates of deposit, savings accounts and checking accounts When the bank closed it owed nothing to Mrs Stonach or her daughter. whose account also figured in the case Judge Pray held that the act of transferring the land to Mrs Stonach showed an inclination to give her preference as a creditor of the bank and ordered the deed set aside. The case was brought against Mrs. Stonach by Frank Browne who was appointed receiver July 30. 1923


Article from The Glasgow Courier, April 3, 1925

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TRANSFER OF 2,686 ACRES ANCOURT

Frank Browne, receiver of the First National bank Chester, Mont., last week won an important victory for the creditors of that institution the federal court at Great Falls, when the transfer of 2,686 acres Hill Liberty county land by the First National bank of Chester Mary A. Stonach, short time prior its closing in July, 1923, was dered annulled in decision handed down on Wednescay of week the Great Falls federal court by Judge Charles N. Pray. The order was returned under the federal statute intended void transfers made by national bank after the commission of an act of bankruptcy, in contemplation thereof," with view to giving creditor over another. Following the history of the case, Judge Pray's order relates that July 1923, 15 days before the bank closed, its officers transferred land Mrs. Stonach by warranty deeds that were recorded after the bank suspended business. Prior giving the deeds, the decision continues, the bank owed Mrs. Stonach by certificates of deposit, saving accounts and checking accounts. When the bank closed owed nothing to Mrs. Stonach her daughter, whose account also figured case. Judge Pray held that the act of transferring land to Mrs. Stonach showed an inclination to give her preference creditor of the bank and ordered the deed set aside. The was brought against Mrs. Ston ach by Frank who was appointed receiver July 30, 1923. between Great Falls and Canyon Ferry.

As as the Great Falls supply shipped out additional 400,000 will be shipped from the Emigrant hatchery Toston, and Winston with which to stock the from Three Forks down to CanFerry. This will be the largest planting in the Missouri river.

One touch of money makes the whole world "skin."


Article from The Chester Reporter, July 9, 1925

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ALIAS SUMMONS IN THE DISTRICT COURT OF THE DISTRICT OF THE OF MONTANA. IN AND FOR THE COUNTY OF LIBER. A. Whitten

Hawley Wymond, Administrator of the Minik, deceased; The First Bank of Chester, Mon Frank Receiver of The First National Bank Chester Montana and The Sheldon

Defendants. The State of Montana Sends Greetings Defendants: HEREBY SUMMONED to complaint in this action, which filed in the off the Clerk this copy of which is herewith upon to file your and copy upon the Plain twenty after the service this the day of service; and in case your to appear or an be taken against you by default for the in the That the and object of the to and termine of mortgage on dated May made, and by said Hans Minik as the State as and there by written assignments plaintiff herein; said mortgage recorded in the the County Clerk and Reof Montana o'clock in Book Mortgages, on page record was duly to and transcribed the the of the County lerk and der Liberty County the said defendants above each them. persons any Interest or lien said through or of them, in and Half of Section premises: Range Townshi (33 North, Five East Montana Meridian 320 acres, more less according the Surv situated Hill County Montana, but now lying and being the County Montana with Liberty all the and tenances thereunto appertaining belonging or in anywise Witness my hand and the Seal of this 6th day McKenzie (SEAL) & GEORGE H. GAU, Clerk. 1925. McKenzie, Plaintiff, Great Montana