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RUGBY BANK IS CLOSED Washington, Jan. 4.-The First National bank of Rugby, N. D., closed its doors today by order of its own directors and the comptroller of currency has appointed George W. Swords as receiver.
11179. First National Bank (Rugby, ND)
Bank Information
- Episode Type
- Suspension β Closure
- Bank Type
- national
- Bank ID
- 6341
- Charter Number
- 6341
- Start Date
- January 4, 1909
- Location
- Rugby, North Dakota (48.369, -99.996)
Metadata
- Model
- gpt-5-mini
- Short Digest
a2a9694e909c265c
Response Measures
None
Receivership Details
- Depositor recovery rate
- 42.0%
- Date receivership started
- 1909-01-04
- Date receivership terminated
- 1919-10-31
- OCC cause of failure
- Fraud
- Share of assets assessed as good
- 43.9%
- Share of assets assessed as doubtful
- 26.5%
- Share of assets assessed as worthless
- 29.6%
Description
The First National Bank of Rugby closed by order of its directors on Jan 4, 1909 and the Comptroller appointed a receiver. The closure was due to bank-specific adverse information: large irregularities and likely embezzlement by cashier/president A. H. (Andy) Jones (his disappearance, unauthorized notes endorsed as cashier). Multiple articles confirm receiver George W. Swords was appointed and the bank remained in receivership with dividends and legal actions thereafter. No bank run on this institution is described in the articles (a run affected the nearby Barton State Bank after Rugby's failure, but that is a separate bank).
Events (4)
1.
July 17, 1902
Chartered
- Source
- historical_nic
2.
January 4, 1909
Receivership
- Source
- historical_nic
3.
January 4, 1909
Receivership
- Newspaper Excerpt
- the comptroller of currency has appointed George W. Swords as receiver.
- Source
- newspapers
4.
January 4, 1909
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Bank closed due to insolvency arising from irregularities and likely embezzlement by cashier/president A. H. (Andy) Jones, including presentation of notes not of record endorsed by Jones and disappearance of Jones.
- Newspaper Excerpt
- The First National bank of Rugby, N. D., closed its doors today by order of its own directors and the comptroller of currency has appointed George W. Swords as receiver.
- Source
- newspapers
Newspaper Articles (20)
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NORTH DAKOTA BANK FAILS. Washington. Jan. 4.-The First National bank of Rugby, N. D., closed Its doors today and the comptroller of the currency has appointed a receiver. The bank has a capital stock of $25,000 and deposits to the amount of $249,460.
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Condensed Telegrams Five Persons Were Injured in holiday coasting accidents at Tuxedo: William Stellenwerf, a race track plunger, committed suicide by firing both barrels of a shotgun into his head. Guglielmo Ferrero, lecturing at Columbia university, depicted Nero and St. Paul as collaborators," and denied Nero set fire to Rome. The First National Bank at Rugby, N. D., has been closed by its directors, its deposits amounting to $249,468, with a capital of but $25,000. Columbia University Has Given the degree doctor of letters to Signor Gugleilmo Ferrero, an Italian historian, lecturing in this country. Secret Service Men at Chicago are hunting a widow in green" who has been running a blackmailing game, with wealthy. persons as the victims. A Special Examination of the affairs of the bankrupt firm of A. Boqth & Company of Chicago has been asked to account for $692,374 not shown on the books. Richard Croker, as the guest of Andrew Freedman, left New York Monday morning for Palm Beach, where he will remain three months at Mr. Freedman's cottage. Four Persons Were Badly Hurt in a gas explosion in a house at New Martinsville, W. Va., occupied by J. H. Bridgeman and G. C. Garrett, the house being wrecked. Hattie Forsyth, a Broadway, New York, show girl, who said she is to be married this month, said it was not to "Tony" Drexel, the young son of A. J. Drexel, of Philadelphia. Walter McGreal, 20, and Hazel Hall, 17. left their homes in Brooklyn on Christmas day and are supposed to have elpped. Mrs. Hall employed detectives to track the couple. Triplets Were Born to Mr. and Mrs. Walter Fortune at their home. 158 Farrington street, Flushing, Queens. Monday. This is the third set of triplets born in Flushing within a year. The Dinner, Ball and Reception at which Miss Marjorie Gould will be formally /introduced to society on Thursday night is expected to be one of the most lavish affairs ever seen in New York society. Richard Canfield, who moved into the handsome residence, 9 East 55th street, nearly three years ago, has suddenly closed the house. stored the costly furnishings and sailed for Europe. Signs were nailed up Monday announcing that the house is for rent. Charles G. Wridgeway. president and manager and director of the Peerless Motor Car company, at 202 West 41st street, New York. and living at 413 Convent avenue, was arrested in his home Monday evening on the complaint of his wife, who charged him with assaulting her.
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Rugby Bank Closes Andy Jones Bank at Rugby in Hands of Receiver G.W.Swords-Maybe in Bad Shapeβ Jones Out of Town ago. Jones is a man of powerful The First National bank of Rugby friends and powerful enemies, and whose president is tht famous Andy while some assert that the bank is Jones, closed its doors Monday in bad straits, the depositors do not morning shortly after the cashier seem to be worrying, and hope the had opened for business. Several bank will pay out dollar for dollar. deposits had been received before George W. Swords of this city the doors were closed and the ashas gone to Rugby as Receiver of sistant cashier, without placing a the defunct institution. notice on the door, went home. Mr. Judge N. Davis is now visiting Jones, we understand, was out. of relatives in Pennsylvania and Dethe city at the time. The bank examiner visited Rugby a few days leware.
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Rugby, N. D., Jan. 7:--The Barton State bank, located twelve miles from Rusby, has been cloced after an exeiting run which followed News that the Firet National bank of Rugby had gene into the hands of a receiver. Andy Junee, the unleeing enettler of the Rugby bank, was president of the Barton bank. Deputy Bank Examiner Walter Doheny has taken charge of the bank and is checking up the accounts, Receiver Bwords to at work checkins up the accounts of the national bank. Another bis bunch of notes given by Jenes as an Individual and endorsed by himself as eashier, were received yesterday at the bank. He. delver Swords has ruled that unless the notes are of recard in the bank none of them will be honored, Unless the bank la Involved heavily In some other direction It is belleved the depositors will be paid in full. The exact condt. tion of affairs w!!! not be known for several days. No nows has boon received from Jones. He has hot been heard from for over a week. Bank depositors have about given up hope that he will return. Jones' friends maintain they have not heard a line from him and they are as much mystined by his dls. appearance as anyone.
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BANK CLOSES ITS DOORS. Failure of First National Bank at Rugby, No Surprise to Officials. Washington, Jan. 5.-The First National bank of Rugby, N. D., closed its doors today by order of its own directors and the controller of the currency has apointed Geo. S. Swords as receiver. The bank has a capital of $25,000 and deposits to the amount of $249,468. It was in trouble some months ago, and its failure is no surprise to the treasury officials.
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A. H. JONES OF RUGBY MISSING Affairs of First National Bank in Tangled Condition and Receiver Named. A. H. Jones, mayor of Rugby and cashier of the First National bank of that town, is missing and the bank. has been placed in the hands of George W. Swords of Minot as receiver. The following special from the Grand Forks Herald of Tuesdav tells of the closing of the bank: The affairs of the First National bank of Rugby of which Andy Jones was cashier, are in a bad tangle according to information received in Grand Forks last evening. The doors of the bank were closed yesterday by Dr. I. M. McBride, president, acting upon order of the board of directors, and the comptroller of the currency has appointed George W. Swords of Minot as receiver. Cashier Andy Jones has been gone for a week and the officials of the bank state that they have not heard from him and do not know where he has gone. They believed when he went away that he was going east to seek to straighten out the tangled condition of the bank's assets. The immediate cause of the closing of the bank was the fact that some notes were presented for payment that were not of record at the bank. The notes had been given by Jones as a private individual and had been endorsed by him as a cashier. Just how badly the bank is involved is problematical. If the bank is to be held responsible for all the paper issued by Jones it is feared that it will come out of the receivership in bad shape. The bank had a capital stock of $25,000 and its last statement showed deposits of $200,000. Jones has been mayor of Rugby. He was interested in lands and was reputed to be wealthy. He was a resident of Grand Forks a few years ago and is well known in the state. The bank was inspected by an examiner about two weeks ago and at that time it was stated that certain irregularities were discovered which would mean the closing of the institution.
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North Dakota Bank Closes. The First National Bank of Rugby, N. D., closed by order of its own directors and the comptroller of the currency. has appointed George W. Swords as receiver. The bank has a capital of $25,000 and deposits of $249,468.
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been completed. Mott.-N. P. surveyors are still at work in this vicinity Fargo-Fargo gets the meeting of the state veterinary association Jan. 61 XIS 102 Waller months in jail for assaulting the town marshal. auo serienced ssog man from twenty to thirty years in the pen for robbery Washburn.-There were sixteen criminal and more than 100 civil actions on the calendar ΠΌΠΎΠΈ 10 dequinu telephone lines have been constructed lately south of here. Flasher.-This place is to have two banks, articles for the incorporation of both having been filed Jamestown.-Bailey Fuller is reported to have the finest water in the state in a spring on his farm-near here Rugby.-The county division strug gles in Ward county were such that one man near Stanley became insane over the affair. Jamestown.-A man and woman left the city mysteriously leaving their baby 19 days old, to be taken care of by the county North Dakota has about reach the limit on the organization of new counties until some of the largest of the present ones can be divided Monango.-The Journal tells about e JOAO Supq8y ΠΈΡΡ OM) getting chewed up-one on the finger and the other on the snoot The public market day at Mott, Saturday attracted the biggest crowd ever gathered in the town, with pos sibly a Fourth of July exception, and the business men want some more. Devils Lake-Senator Hansbrough, who has been ill at Asbury hospital, SIMOIS sp Physicians and hospital attendants have strong hopes for his complete recovery He is still very weak. however, and it will be some time before he can leave the hospital Grand Forks.-In only ten counties in the state were new superintendents of schools elected. In thirty-two counties the officials were re-elected and in two others superintendents who had formerly held the positions some years ago were chosen. Jamestown. Arrangements have practically been completed for the engagement of P. J. McClory to as sist the state's attorney in the prose cution in the case of the state against W S. Howard for the murder of A. jo couple B here 10 the Thonas "I months ago. Rugby -The Balfour Coal Mining company has been or ganized out in Ward county with an authorized capital of $500,000 Among the incorporators are a couple of mine operators from Missouri and an elevator JO 118 eleverors 18 SUMO that ΡΠ»Ρ which are handling coal Rugby.-The affairs of the First National bank, of which Andy Jones, was cashier. are in a bad tangle according to information received in Grand Forks last evening The doors of the bank were closed by Dr I. M McBride assistant cashier, act ing upon order of the directors and the comptroller of the currency has appointed George W. Swords, of Minot as receiver. Maxbass disastrous fire which started by the explosion of a gasoline lamp in the dining room of the City restaurant. in which several persons were sitting broke out Friday night The City hotel, restaurant a barber shop and a rooming flat were totally destroyed A butcher shop and a pool room were badly damaged. The Renville Mercantile Co.'s big store was saved after hard work Fargo.-A personal check for $1,000 for the relief of the Italian earth quake sufferers was forwarded by Rt. Rev John Shanley, bishop of the Catholic church of North Dakota, to the National Red Cross society. He also ordered that a special collection be taken simultaneously in every Catholic church in North Dakota on Jan 17. Other churches are taking like action to aid the earthquake sufferers Dunseith.-The Magnet prints a photograph of a street scene in Dunseith taken the day before Thanks giving. Windows and doors were open and people were out without coats, and ladies with white dresses The climatic effect is decidedly sum mery. Light clothing has been quite comfortable in any week since that time, but just at present a fur coat seems to be more in keeping with the conditions. Taylor.-The Farmers State bank which was recently incorporated has just completed a brick building and expects to be ready for business soon after the first of the year Devils Lake.-It is probable that Mrs. Wright will be tried here on the charge of murdering her adopted daughter-and no change of venue will be taken as was planned Russell.-A child of Emil Luedtke was playing with & cat when the feline sprang at the youngster and inflicted painful scratches that may STATE up result Oakes.-Oakes is to have a new hotel this year The plans call for an L shaped building 50x110 feet, three stories and basement, containing 50 rooms. The hotel will be known as the New Argyle. Minot.-Judge Goss certainly hand ΠΎΡΠΌ Connoy Puttip 01 package E pe
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TWO NEW BANKS AT RUGBY. Pierce County to Have at Least Three New Financial Institutions. Grand Foks Herald: As a result of the closing of the First National bank of Rugby and the First State bank of Barton, following the disappearance of Mayor Andy Jones, three new banks are to be started in Pierce county. Certificates of organization have already been filed with the Pierce county register of deeds for the First State bank of Rugby and the State bank of Barton, each with a capital of $10,000. The Ross-Davidson syndicate, owning a string of banks in North Dakota, is back of both. The promoters of the other bank, which will be located in Rugby, are O. T. Tofsrud, president; Ed Seele, vice president, and Nels Romness, cashier. Every train arriving from the east for several days has brought to Rugby Minnesota and Wisconsin bankers who purchased notes from Jones. The exact amount of the notes of doubtful value floated by Jones is not yet known, but estimates run as high as $250,000. Minnesota seems to have been Jones' favorite field of operation and the amount of paper held by capitalists of that state is greater than the combined holdings from all other states, it is asserted. It is confidently believed by those most heavily interested that if the bank is released from the obligation of the supposed worthless notesonly taken into consideration because endorsed by Jones as cashier of the First National bank, but not of record-there will be enough to pay all creditors and depositors in full. The resources of the bank seem to have been left unimpaired with the exception of these questionable obligations. Vice President F. T. Gronvold is one of those belonging to the optimistic class. In his financial dealings Jones did not let the matter of friendship count for anything. Some of his best friends are apt to suffer to the greatest extent. In endorsing the notes which have been declared not binding on the bank Jones used rubber stamps containing the banks endorsement. He stamped the notes on the back when he desired to sell them. The stamp contains no registry number and SO the proceedings have been held irregular by the receiver. No trace of Jones has been secured. His last dealings are believed to have been in St. Paul. H. J. Mushburger, who recently had a public sale, has rented his farm to E. Morgan and will move to Omemee, having purchased the A. A.
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rapidity that Rugby people are now prepared for anything. Jones' victims are numbered by the score, and they are from Wall street as well as the country districts. Late information indicates that Jones decided to make a grand cleanup, and it is estimated that he took with him when he left Rugby from $100,000 to $200,000. Bankers, who are usually supposed to be the shrewdest class of money handlers, compose the largest share of the victims of Jones. Jones brought in his final shower of gold with a sheep company which he incorporated. The only sheep connected with the deal were those who invested in the stock. A St. Paul banker purchased $10.000 worth of this stock. Scores of others invested smaller amounts. The extent of his operations in this class of worthless securities will only be know when the victims report their losses. Caught Even Wall Street. A New York national bank, known all over the country, has $22,000 worth of Jones' promissory notes which he negotiated by endorsing them as cashier of the Rugby National. A Wisconsin banker arrived in Rugby yesterday with $16,250 of this class of notes. This banker stated that he had sold $20,000 worth of stock in Jones sheep company which was to yield big returns. Jones traded him a mill at Campbell, Minn., which the banker never saw, but he plans to look it over on his return home. A banker from a Minnesota town arrived with $25,000 worth of Jones' securities. In the bunch were notes which had been signed by men who had been employed in Jones' stables and who could not go good for $50. The notes ranged from $1,000 to $25,000. May Hold Bank for Notes. There is a wide difference of opinion among lawyers as to whether the notes signed by Jones as an individual and endorsed by him as cashier, but not of record in the bank, will hold the Rugby National. It is understood that lawyers arepreparing to attack this ruling of Receiver Swords in the courts. If the courts hold that the bankmust make good the amount of the notes endorsed and not of record the assets of the bank will be more than wiped out. The 1 notes of this character will total hundreds of thousands of dollars. One of the bitterest legal fights in the history of the state is predicted. Still Busy on Books. Receyier Swords and an expert are still busy checking up the accounts of the Rugby National and Bank Examiner Knudson and Deputy Doehny have not succeeded in getting the books of the Barton bank checked up. Sensational developments are promS ises as a result of the state having 1 loaned the Barton and Rugby banks S a total of $29,000. It is ascertained s that certain formalities were not coma plied with.-Devile Lake Journal.
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Government Sleuths, After Search of Six Months, Run to Earth Absconding Cashier of First National Bank of Rugby and Head of Barton State Bank. WILL BE BROUGHT TO N. DAKOTA Details of Capture of Dakota's Frenzied Financier Are Meagre, But Federal Officials Here Are Assured That the Defaulter Is in Arms of the Law. While Jones will be prosecuted for Andy Jones, North Dakota's frendeals in connection with the First Nazied financier, is under arrest. The tional bank at Rugby being the only Rugby banker who is credited with matter in which the federal officials promoting the most astounding deals in the history of the state, has been have jurisdiction, his bond floating in connection with the "sheep ranch" is grappled by the strong arm of the fedsaid to have cost eastern and middle eral authorities. state capitalists thousands of dollars. After being traced for six months The last heard of Jones was at Minby secret service men and detectives, neapolis the first week in January Andy Jones, ex-cashier of the First when he drew a check of $7,000 on the National bank of Rugby, N. D., president of the First State bank of BarFirst National bank of Rugby. At that time he dropped out of sight. The ton, N. D., and promoter of the "Jones doors of the bank closed and on Jan. 4, sheep industry," was yesterday placed George W. Swards of Grinnell, Ia., who under arrest and is now held in jail in was in North Dakota closing up the Texas, awaiting an order or removal affairs of the Minot National bank, was to North Dakota where he will be forcappointed receiver. One dividend of ed to answer for what is considered 25 per cent WS recently paid on deone of the most collosal frauds ever posits. disclosed. Very shortly after the failure of the Nothing but the mere statement that Rugby bank, the First State bank of Jones had been apprehended and was Barton, N. D., of which Jones was under arrest, were received here late president, failed and Walter Dohney yesterday afternoon. While federal was appointed receiver. officials have been scored for not laying Federal indictments were returned hands on this man, they have been against Jones by the last U. S. grand steadily at work, not to cease until jury and bench warrants issued for their efforts were crowned with suchis arrest. cess.
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Anxious to See Mr. Jones. Andy H. Jones. the defaulting president of the First National bank of Rugby, who recently was captured in Texas, will reach Fargo this week in custody of Deputy Marshall of the Lone Star state. The receiver of the bank and other federal officials are extremely anxious to get Jones' assistance in straightening out the bank's affairs.
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The annual report of the state treasurer's office for the year ending October 31, 1909, was submitted to Governor Burke Saturday afternoon by State Treasurer Bickford, and to those interested in the finanacial af: fairs of the commonwealth, it furnish es many items of interest in a detailed and concise form, which is a marked improvement over the financial reports heretofore published by the state departments and institutions. The form adopted by State Treasurer Bickford gives a detailed statement of the income and disburse. ments of the state treasury, that of the income being shown under a separarate heading with the various subdivisions, while the expenditures are shown under fifty-five different headings and subdivisions. The form in which the report is presented is one approved of by up-to-date financiers and expert accountants, and while it does not take as much room in the printed book as the old form, its several items are before the reader in such a way as to be clearly understood by the laymen who must necessarily have more than an ordinary knowledge of the affairs. The report shows that the cash transactions during the year November 1, 1908, to November 1, 1909, amounted to $5,170,916.29. The cash receipts during the periol was $4,588,010.70, as compared with $2,259,668.84 for the previous period; an increase of $1,011,937.28. The report shows that the interest on deposits of state funds in the various banks during the past year. a The net increase of $15,042.03. amount received as interest on deposits for the previous period being $28,087.78, as compared with $43,129.81 collected during Mr. Bickford's first year in office. The increase is accounted for by there having been a larger general cash balance on deposit and also owing to the fact that a more careful and rigid check was kept by Mr. Bickford on the interest due from the various banks. Mr. Bickford's report shows that there is due from suspended banks the sum of $22,265.90, of which $12,113.46 is due from the First National Bank of Rugby, and $10,152.44 from the State Bank of Barton. This amount is not now available, but suits are pending in the district court looking to the collection of this money from the bondsmen who became sureties for the bank. The state has already realized a dividend of 25 per rent from the Rugby bank, which reduces the original balance of $16,. 151.14 to the present amount. Mr. Bickford's report shows the bonded indebtedness of the state to be $1,151,300. The report of a predecessor in office for the year 1908 gives the bonded indebtedness in the sum of $692.300, overlooking an indebtedness of $459,000 for which the state is responsible and on which it pays interest at the rate of 4 per cent per annum out of the various funds. Mr. Bickford shows that all of the bonded indebtedness is held by the common school funds of the state except bonds amounting to $324,600, which are held by eastern investors, the interest on same being paid semiannual through the Chemical National Bank of New York City, at an expense of $16.23. There is considerable speculation on the part of persons interested in
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# GOVERNMENT WEAVING # TIGHT NET AROUND # BANK WRECKER Continued from page One to help Jones personally that he signed the note. On re-direct examination Bouye brought out the infor nation that his brother, Pat Bouye, who also signed a note for Jones, owned no property. Chauffer Signed a Note. E. E. Simonton, former chauffeur for Andy Jones, gave important testimony for the prosecution. Simonton worked as janitor of the Rugby schools at $75 for a time and then went into the employ of the defunct banker at the same stipend. It was while serving in this capacity that he signed an accommodation note for $2,400, for which he received nothing, being assured that he would never be able to pay for it. He testified that he owned no property and had paid nothing on the note, which is also held by the receiver of the bank. This Witness Couldn't Hear. The climax was reached this morning when Dave Donely, a farm laborer, who during the est season's of the year never made more than $35 a month, told of signing a note for $1,900 at the request of Andy Jones. Donely is an aged man and on taking the stand informed Judge Barnest that he was hard of hearing. Taking a position right by the man's ear, the assistant prosecutor brought out a line of testimony that impressed the jury. Donely stated that he worked for Jones most of the time as a farm laborer, "receiving the going wages." On further questioning he stated that was $35 in the summer time and nothing in the winter. The cold months were spent in trapping by Donely. "What did you make trapping?" was asked. "I wasn't very successful," was the reply. Engerud Makes Objection. At this point Judge Engerud for the defense offered an objection, in line with scores of others made, contending that the testimony had no bearing on proving any charge in the indictment and was therefore irrevelent and immaterial. Judge Barnett argued that it came under the first count of embezzlement of $30,000. That court overruled the objection holding that it also showed Jones' intent in other dealings. Fargo Man Implicated. The last important witness called by the government this morning was W. George Mahon. He testified that he was a personal friend of Jones, being intimately acquainted with the defendant. On May 5, 1908, he told of receiving from Jones personally at his (Mahon's) Fargo office, a certificate of deposit for $1,710, on the First National bank of Rugby, made in favor of Mahon. An understanding was reached that Mahon was to sell this and return the proceeds to Jones. The certificate was sent to Mahon's brother at Inkster where it was marketed, and $1,650 returned to George Mahon at Fargo. Mahon sent Jones a check for $1,600. holding out $50 which he stated that he had advanced before. The witness was excused long enough to get the check from his office, which was offered in evidence by the government. The only fact brought out on cross-examination was that the deal was carried out to raise money for the Rugby bank. Elstad on Stand, Too. On three different occasions E. J. Elstad, who, under Jones' regime, was assistant cashier and bookkeeper of the bank, was called to the stand by the prosecution. In each case he testified concerning the notes and certificates. The proceeds of all notes which Jones received, after being discounted by the bank, were invariably credited to Jones' personal account. Elstad testified that Pat Bouye, the Fred Ely and Frank Athearn notes were in the defunct bank when taken charge of by the receiver. Other note signers told on the stand that the paper which they had signed had never been paid.
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REPORT OF STATE TREASURER Year Ending October 31, 1909. TREASURY DEPARTMENT, STATE OF NORTH DAKOTA TREASURER'S OFFICE Bismarck, November 1, 1909. To His Excellency, John Burke, Governor of North Dakota. Sir :-In accordance with requirements of law, I have the honor to submit herewith my annual report of the financial transactions of the State for the period ending October 31, 1909. In compiling the within report I have made a marked departure from the form of previous reports and in addition included a complete itemized statement of Income and Expenditures for the past twelve months. The total cash transactions of this office for the past fiscal year exceeds the previous one by $1,011,937.28 as shown by the following tables: TOTAL CASH RECEIPTS AND PAYMENTS. $ 799,310.17 Cash on hand November 1, 1907 3,259,668.84 Receipts $4,058,979.01 Total $3,476,073.42 Payments 582,905.59 Cash on hand November 1, 1908 $4,058,979.01 Total $ 582,905.59 Cash on hand November 1, 1908 4,588,010.70 Receipts $5,170,916.29 Total $3,676,053.37 Payments 1,494,862.92 Cash on hand November 1, 1909 $5,170,916.29 Total INTEREST ON STATE BALANCES. Interest on deposit of state funds in the various state depositaries during the past year shows a gain from $28,087.78 to $43,129.81, a net increase of $15,042.03. This is accounted for inasmuch as the average cash balance has been larger for the past year and also owing to the fact that a more careful and rigid check has been kept of the interest due from the several banks. SUSPENDED BANKS. This report shows a cash balance of $12,113.36 due from the First National Bank, Rugby, North Dakota and $10,152.44 from the Barton State Bank, Barton, North Dakota. These are the state balances still remaining in the above suspended banks, and said balances are not now available. Action has been brought against the several sureties on the bonds of these banks, and the action is now pending before the district court. The state has realized a dividend of twenty-five per centum, from the Rugby bank, said balance having been reduced from $16,151,14 to the present amount of $12,113.36. SECURITIES. At the present time the securities held by this office amount to $5,163,967.85 an increase of $805,555.00 over those held a year ago. This is the amount of the permanent fund of the common schools and state institutions, which has been invested by the Board of University and School Lands, and the interest accruing therefrom is converted to the use of the different institutions and common schools. Included in the above securities is $802,367.85, which has been loaned on the farming property of the state; an increase of $236,655.00 for the past twelve months. The first list given below shows the amount of securities held by the different institutions of the state, while the second table shows the nature of those held by the common schools. The common school investment amounts to $4,056,817.85 and the
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Rugby Bank Creditors Gain. Washington, Aug. 25.-A second dividend of 15 per cent has been allowed to the creditors of the First National Bank of Rugby N. D., by the comptroller of currency, making a total of 40 per cent allowed since the bank went into the hands of a receiver on Jan. 4, 1908.
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SOME HISTORY OF RUGBY BANK FAILURE The First National Bank of Rugby became insolvent on January 4, 1909. At the time of its insolvency the bank was designated as a depositary of state funds in the amount of $10,000. On the day its doors was closed there was on diposit in the bank $16,147.12. The following bonds had been furnished by the bank as security for the deposits of the state: Federal Union Surety Company $10,000, Fidelity and Deposit Company of Maryland $5,000, American Bonding Company $8,000, and a personal bond for $10,000. A bond of the United States Fidelity and Guaranty Company was also deemed security for the deposits. Suits were instituted against the United States Fidelity and Company and Federal Union Surety Company, and the Fidelity and Deposit Company of Maryland to recover the entire amount of deposits in the bank at the time of its insolvency. Between the time that the affairs of the bank went into the Lands of its receiver and the time the cases were tried the receiver paid $6,460.45 in dividends. The cases were tried in April 1911, before Hon. S. L. Nuchols, Judge of the 12th Judicial District, sitting for Hon. W. H. Winchester, and it was held that the sureties of the bank were not responsible for the full amount of $16,147.12, but only to the extent of $10,000, which was legally on deposit in the bank at the time of its failure, and further held that the state was not entitled to apply the entire amount paid in dividends to the payment of the excess over $10,000, and that the amount paid in dividends should be apportioned between the state and the sureties, so that the entire liability of the sureties, after applying the share of dividends paid, was $6,645. Judgement was rendered for this amount against the Federal Union Surety Company and the Fidelity and Deposit Company of Maryland. The balance remaining unpaid with interest at the date of the entry of judgement. July 18, 1911, is approximately $4,000.
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MATTER WITH REFERENCE TO ANDY JONES INSTITUTION TO BLAME. BANK WAS DESIGNATED AS A DEPOSITORY OF NORTH DAKOTA STATE MONEY. Bonding Company Failed to Make Good the Loss of State Money Which Was on Deposit in Bank-Matter Has Been in Court Several Timesβ Bond Company restrained. Bismarck, N. D., Aug. 18.-On the strength of information from the United States treasury department at Washington Insurance Commissioner Taylor has suspended the Federal Surety Company of Indianapolis, Ind., from doing business in North Dakota until the demands of the federal government have been complied with. The letter from Washington states that the company has been ordered to suspend operations until a full investigation of its affairs may be made. The Federal Union is on the bonds of some county officers of North Dakota and is used by banks to secure the deposit of state funds. It had in risks in this state, according to its 1910 statement $57,500, and it collected in premiums $287.50. The state now has a judgment against the Federal Union Surety Co., on an indemnity bond for the defunct Rugby bank. Unless its matters can be speedily adjusted the company will be forced to the wall, and the bonds held in this state will be greatly weakened. It is highly probable that the state authorities will require new bonds as sureties where the distressed company is involved. The president of the Federal Union Surety company is Winfield F. Durbin, an ex-governor of Indiana and a man reputed to be worth a half million. The directors are men of large means and experience in business affairs and just how far the company is involved a federal examination will disclose. In the meantime no more business can be legally solicited in North Dakota by the company. The action is taken as a result of the affair of the First National Bank of Rugby, which became insolvent on January 4, 1909. At the time of its insolvency the bank was designated as a depository of state funds in the amount of $10,000. On the day its doors were closed there was on deposit in the bank $16,147.12. The following bonds had been furnished by the bank as security for the deposits of the state: Federal Union Surety Company $10,000, Fidelity and Deposit Company of Maryland $5,000, American Bonding Company $8,000, and a personal bond of $10,000. A bond of the United States Fidelity and Guaranty Company was also deemed security for the deposits. Suits were instituted against the
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BIENNIAL REPORT SHOWS EXPENSES Gunder Olson Tells of Condition of North Dakota Treasury. Bismarck, N. D., Dec. 12-Gunder Olson in his biennial report to the legislature shows that during the past two years the state has paid off $250,000 in bonds, some of them due in 1921 and running from that date to as late as 1926. The report also shows that there is a balance due from the defunct First National bank at Rugby of $3,066.29, this being an item that came to the office from a former administration and which has been cut down some during the past two years as adjustments have been made. The same condition exists as to the Barton State bank with the figures $1,522.87 at the time the report was made. The Medina State bank, the only bank to suspend business in the state during the period, which has not since opened its doors for business had a shortage of $1,394.01, but this amount had been paid by the bonding company by which the state was insured, a short time after the report was published, or to be exact on July 9. so the state did not lose by that failure. In his suggestions to the legislature as to amendment to the laws, Treasurer Olson states that he believes the bonds sold by the state should be of larger denomination as this will save a vast amount of labor not only in the treasurer's office but in the offices of the district town or county, and he alSO believes the county treasurers should be required to send in the interest collected on farm loans the same date it is received.