11281. Farmers State Bank (Cut Bank, MT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 30, 1920
Location
Cut Bank, Montana (48.633, -112.326)

Metadata

Model
gpt-5-mini
Short Digest
2de69949

Response Measures

None

Description

No article describes a depositor run. Articles describe receivership and that the bank closed in 1921 and had receivers (H. Norman, Robertson, Coover). This indicates a suspension/failure with receivership rather than a temporary run. Later (1938) royalty income paid dividends to former depositors but the bank did not reopen.

Events (3)

1. November 30, 1920 Receivership
Newspaper Excerpt
It recites that H. Norman was the first receiver of the bank, then Robertson and later ... That on November 30, 1920, Ida M. Worden was owner of the land, that on Dec. 30, she gave warranty deed ... to secure ... stockholders' liability ... it is alleged that the bank receiver has received rents and profits sufficient to pay the indebtedness.
Source
newspapers
2. January 1, 1921* Suspension
Cause
Local Shock
Cause Details
Bank went under during period of agricultural adversity; economic conditions led to failure.
Newspaper Excerpt
The bank closed in 1921 but 4 good producing wells have been completed ... and a dividend of 7 per cent totaling $11,958.48 was recently paid to former depositors of the bank from royalty payments.
Source
newspapers
3. May 5, 1938 Other
Newspaper Excerpt
a dividend of 7 per cent totaling $11,958.48 was recently paid to former depositors of the bank from royalty payments. One more well ... present indications are that the worthless old homestead will eventually pay back every cent of the old depositors which was lost when the bank failed.
Source
newspapers

Newspaper Articles (4)

Article from Cut Bank Pioneer Press, November 30, 1934

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Article Text

ALLEGES AUTHORITY Other Cases Filed Relating Oil Matters Memories of bank receivership days this city by action to quiet instituted by Ethel Stack against Farmers State Bank of Cut Bank and Coover, action of The highlights of the action found in the action filed by Cheadle of Shelby attorney for plaintiff. It recites that H. Norman was the first receiver of the bank, then Robertson and later That on November 30, 1920, Ida M. Worden was owner of the land, that on Dec. 30, she gave waranty deed to plaintiff, Ethel Stack Ida Worden was alleged by Day indebted to the receiver for shares of stockholders' liability To secure delivered Day waranty deed to the land "although absolute in form, was intended by both plaintiff and Day be .and agreed that upon payment of said indebtedness plaintiff other person or upon realization income or profits sufficient to pay ndebtedness. land was to reconveyed to On Nov. 22, Day entered into possession of premises and received rents and profits and applied to his own use, an amount sufficient to pay said indebtedness. On March Verne resigned and March Coover to take over the duties and has to be of the alleged in the action of Cheadle that Coover never appointed receiver by valid order of the court and that he has never filed bond. The complaint recites the history the Nadeau lease on this tract, which is in the oil area east of the city. It therefore case that will wide An accounting is asked of Coover, who, it alleged is not legal receiver. states that plaintiff ready. into court and make payment soon this accounting made by Judgment is asked and the court requested to appoint receiver for the bank.


Article from Montana Oil and Mining Journal, December 8, 1934

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Article Text

# LITIGATION OVER # COOVER LAND IN # SOUTH CUT BANK Litigation over the northeast quarter of Sec. 17-35-5W, in the heart of the Cut Bank oil field has been started by Ethel Stack against Farmers State Bank of Cut Bank and C. D. Coover. The action invoices a deed given as security for stockholders' liability in the Farmers State Bank, December 30, 1920, by Ida M. Worden the owner. It is alleged that the bank receiver has received rents and profits sufficient to pay the indebtedness, and the plaintiff asks that the property be restored. Involved in the court's decision is the Nadeau Brothers lease on the quarter section.


Article from Montana Oil Journal: with News of Oil in the Williston Basin, Montana, Dakotas and Greater Rockies, December 8, 1934

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Article Text

LITIGATION OVER COOVER LAND IN SOUTH CUT BANK Litigation over the northeast quarter of Sec. 17-35-5W, in the heart of the Cut Bank oil field has been started by Ethel Stack against Farmers State Bank of Cut Bank and C. D. Coover. The action invoices a deed given as security for stockholders' liability in the Farmers State Bank, December 30, 1920, by Ida M. Worden the owner. It is alleged that the bank receiver has received rents and profits suficfient to pay the indebtedness, and the plaintiff asks that the property be restored. Involved in the court's decision is the Nadeau Brothers lease on the quarter section.


Article from The Hardin Tribune-Herald, May 5, 1938

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Article Text

OIL MAKES "WORTHLESS" FARM VERY VALUABLE A dry land farm which has been unsuccessfully homesteaded by several parties is proving a life saver for investors in the Farmers State Bank of Cut Bank, Montana. The farm, originally homesteaded by a family named Brainiff and later purchased by Frank Worden of the Bank. remained undeveloped as a farm but later proved to be within the proven territory of the Cut Bank field and was leased for drilling by the Nadeau Bros. in 1934. Conditions of the lease called for the payment of $8,000.00 in cash $8,000 from the production and the regular 1-8 royalty to the receivers of the bank which "went under" during the period of agricultural adversity. The bank closed in 1921 but 4 good producing wells have been completed on the old homestead since the first well was sunk in 1934 and a dividend of 7 per cent totaling $11,958.48 was recently paid to former depositors of the bank from royalty payments. One more well, the last to be drilled on the tract under the lease agreement, is now underway and present indications are that the "worthless" old homestead will eventually pay back every cent of the old depositors which was lost when the bank failed.