11335. American Bank & Trust Company (Great Falls, MT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
December 3, 1921
Location
Great Falls, Montana (47.500, -111.301)

Metadata

Model
gpt-5-mini
Short Digest
055886ba

Response Measures

None

Description

Bank directors voted to close in early December 1921. Closure was due to adverse bank-specific conditions (purchase of the Cascade Bank and heavy, uncollectible loans compounded by the postwar depression), not a rumor-driven run. A receiver was appointed in January 1922 and reorganization attempts through 1922 failed; receivership liquidation proceeded (fixtures sold, claims deadlines). Dates taken from newspaper reports (closure Dec 2–3, 1921; receiver actions in Jan–Feb 1922).

Events (5)
1. December 3, 1921 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors voted to close after heavy burden from purchase of the Cascade Bank (Feb 1919) leading to combined loans too large to meet depressed deposits and inability to realize on paper during the postwar/business depression; cited as primary cause of closing.
Newspaper Excerpt
The bank did not open on December 2, 1921, by vote of the directors.
Source
newspapers
2. January 12, 1922 Other
Newspaper Excerpt
Albert W. Springhorn was duly appointed by the court (receiver). / plans for reopening ... Henter is active ... recommended as receiver and Mr. Springhorn was duly appointed by the court.; article dated 1922-01-12 described appointment of receiver and reopening plans by Henter and committees; used to show immediate receivership and reorganization efforts.
Source
newspapers
3. January 22, 1922 Other
Newspaper Excerpt
Committees Give Notice That Unless Agreement Is Signed, Bank Cannot Open. ... The plan adopted calls for payment of 50 per cent of the deposits ... remaining half will be taken out in stock in a holding company. ... 'The American bank will not open unless all depositors sign up.' (reorganization drive continues)
Source
newspapers
4. February 21, 1922 Receivership
Newspaper Excerpt
NOTICE TO CREDITORS OF AND CLAIMANTS AGAINST THE AMERICAN BANK & TRUST COMPANY... present such claims ... to the undersigned, as Receiver ... Dated February 21, 1922. A. W. SPRINGHORN, As Receiver of The American Bank & Trust Company.
Source
newspapers
5. November 17, 1922 Other
Newspaper Excerpt
ABANDON HOPE OF REOPENING AMERICAN BANK. Court Orders Fixtures Sold; Nov. 25 Final Date for Depositors' Action. ... bank did not open on December 2, 1921, by vote of the directors. (committee abandons active campaign; court orders sale of fixtures)
Source
newspapers

Newspaper Articles (19)
1. December 9, 1921 The Producers News Plentywood, MT
Article from The Producers News, December 9, 1921

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American Bank&Trust Co., GreatFalls, ToWall (Continued from Page One) ciate the fact that our bank was affected in a way by the business depression that had no parallel with the other banks of the city. Our difficulties are wholly traceable to the taking over of the Cascade bank in February, 1919. "Soon after the Cascade bank was purchased the deposits of the Ameritotalled $2,200,000. Since have fallen while we were but $400,000. of the our then can 000,000 loans bank the deposits able board The to off reduce of result $1,- dithe doors. be to meet but of was may rectors the the to depositors, required decision close will there paid the Some 100 is claims time per no doubt that they be cent. The time necessary for liquidation will depend to some extent on the results of the next crop. A good will probably make possible realon the bank's assets of course, are unable to stockholders are ization year. case crop Some we of This, our would reorganize. within discuss- be the in ing a possible reorganization of the bank, but it is too early as yet to know whether anything tangible will result. ASSUMED HEAVY BURDEN "The history of the bank since the purchase of the Cascade bank is one that probably needs but little description now. The combined loans of the two institutions was a load too heavy under the conditions which followed. The dry summer of the first year made it impossible to reduce our loans in proportion TO the inevitable reduction in deposits, and it was under this handicap that we entered the season of 1920, during which we were compelled to meet the business depression just then reaching its acute stage. Inability to realize on our paper was the primary cause of the bank's closing." Mr. Reckards stated that the greater portion of his personal assets are represented in the bank. His plans for the future are indefinite. He has been a resident of Great Falls for 28 years, and engaged in the banking business all of that time. In 1915, he was instrumental in organizing the American Bank & Trust company, which nearly two years ago took OVer the Cascade bank, one of the picneer financial institutions of the city. EXAMINER TAKES CHARGE A. W. Springhorn, deputy state bank examiner, arrived in Great Falls Saturday afternoon and took personal charge at the bank pending further disposition of its affairs. He will audit the bank's books and report to the governor and the attorney general, after which, if reorganization has not been accomplished, a receiver will be appointed by the district court The decision to close the bank was reached by the directors at a that extended well into Saturday morning and a sign giving notice that in hung the bank would not open the widow at 9:30 o'clock. Word that the bank had suspended business spread rapidly and a small crowd gathered at Central avenue and Second street for a short time. The closing of the American bank did not re flect on business at the other banks, and all bankers asserted that the reasons for the unfortunate situation of the closed concern are so thorough recognized that no unsalutary effeet will be reflected on any financial concern in the city.

2. January 12, 1922 Belt Valley Times Belt, Armington, MT
Article from Belt Valley Times, January 12, 1922

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Henter Works on Opening A. B.&T The plans for reopening the Americon Bank & Trust company at Great Falls are of local interest from the fact that Leo A. Henter, formerly cashier of the First National Bank of Belt. is active in the matter and has already submitted several propositions to the stockholders and directors. A meeting was held Monday evening at holders and depositors are requested which Mr. Henter submitted a plan to the stockholders present and which will be submitted again tonight at a meeting called at which all stockHenter is to form a holding corporto be present. According to the statement of one of the directors present at Monday night's meeting, the plan of Mr. Henter is to form a holding corporation in which depositors of the bank will take stock to the amount of their deposits, the corporatio n to secure funds by subscription to the treasury stock of the holding corporotion, necessary for reopening the bank. The details have not been fully worked out but the plan appeared feasible to those who heard Mr. Henter explain it. sufficiently so at least that the meeting has been called for this evening. Albert W. Springhorn, chief deputy in the office of State Superintendent of Banks L. Q. Skelton, was recommended as receiver of the Ameriran Bank & Trust company of Great Falls to Judge J. B. Leslie in the district court Friday morning by Mr. Skelton and Mr. Springhorn was duly appointed by the court.

3. January 19, 1922 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, January 19, 1922

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COUNTY GETS LAST PAYMENT ON DEPOSITS Remittance From Surety County Repays Money Carried in American Bank. A certified check for $34,000. representing part of the funds deposited by the county in the American Bank and Trust company, was paid to County Treasurer Fred C. Andretta Wednesday by H. L. Hart, representative of the National Surety company, under the terms of a surety bond for that amount. Winds Up Account The payment of this amount with the check for $26,000 that was paid to the county treasurer several weeks ago, reimburses the county for all the money that was on deposit in the American bank when it failed. The first payment was made soon after it was announced that a receiver was to be appointed to take over the assets of the bank. Treasurer Andretta said that with Wednesday's remittance from the surety company, the county's account with the American bank is wound up, with the exception of $7.71. A check for this amount was given by the treasurer before the bank closed and had not been cashed. The county will file a claim for the amount against the bank and assign it to the holder of the check. $40,000 for City Mr. Hart stated that while he is in Great Falls his company expects to deliver to City Treasurer W. P. Wren a draft for $40,000, the amount of the bond carried with this concern by the municipality. This payment will cover the city's deposit with the exception of $300, which is covered by a personal bond.

4. January 21, 1922 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, January 21, 1922

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American Bank and Trust Co. Reorganization To Our Fellow Depositors: The undersigned Committee of Depositors are cooperating with the regular reorganization committee of stockholders. We are none of us identified with the bank as stockholders, but all have substantial deposits therein. We are convinced that the plan of reorganization adopted by the stockholders is feasible, fair to depositors, and the only means by which the interests of depositors will be preserved. We can readily see that under liquidation by Receiver the depositors stand to lose the greater portion or all they have in the bank, but under the proposed plan of reorganization we believe they will have a chance to save their entire deposit. We have signed up all our own deposits, and strongly urge our fellow depositors to do likewise. It is of grave importance to us all that this be done speedily. Sign today and thus hasten the reopening of the bank and the saving of our deposits therein. D. J. M'INTOSH HOWARD G. BENNET R. J. BARBER J. A. BLESSING H. R. WAHOSKE

5. January 22, 1922 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, January 22, 1922

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# URGE AMERICAN # DEPOSITORS TO # HELP WITH PLAN Committees Give Notice That Unless Agreement Is Signed, Bank Cannot Open. Centering their efforts on an early reorganization of the American Bank & Trust company as a means of stopping the discounting of paper in the east, special committees representing the bank's stockholders and depositors are urging all depositors to accept the agreement under which it is intended that the bank will be opened. The plan adopted calls for payment of 50 per cent of the deposits in from two to four years, while the remaining half will be taken out in stock in a holding company. Subscribers Not Liable Owing to an erroneous impression that stockholders in the holding company would be liable for any losses that might accrue to the bank, certain of the stockholders last week responded slowly to the recommendation that the agreement be signed, but with the assurance of competent legal authorities that in signing the agreement the depositors would assume no obligations in this regard, the reorganization plan is going forward satisfactorily, it was stated Saturday. In a statement issued by committees for the depositors and stockholders Saturday evening, all depositors who have not signed the agreement were furnished the following information and urged to give their assistance in the reorganization work: "The American bank will not open unless all depositors sign up. Many depositors have already signed up. All must do so before the bank may be reopened. All those who have not signed should call at once at the office of Dirks' Agency company, 12 Third street north, where there will be a committee of depositors to explain the plan. Old Stockholders Not Released "The stockholders will not be released from their liability under this plan, but are making a voluntary assessment upon themselves to supply the necessary cash reserve to reopen. Eastern banks that hold $1,200,000 of the bank's best paper against loans amounting to $500,000 were attempting to foreclose a few days ago. With the assistance of the receiver now in charge the reorganization committee succeeded in cancelling proceedings upon the condition that reorganization be completed immediatelly. The eastern banks have expressed willingness to assist, providing stockholders and depositors can reorganize at once. Depositors signing will not be liable for debts of the bank, or have stock liability in the holding company. An entirely new management will govern the reorganized bank." The statement was signed by H. G. Bennet, Mrs. Frank Powell, R. J. Barber, H. R. Wahoske, D. J. McIntosh, J. A. Belssing, members of the depositors' committee, and Alfred Malmberg, L. H. Kommers, A. B. Dirks, A. J. Fousek and J. J. Flaherty, the reorganization committee. Nearly 20,000 women in the United

6. February 23, 1922 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, February 23, 1922

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LEGAL ADVERTISING NOTICE TO CREDITORS OF AND CLAIMANTS AGAINST THE AMERICAN BANK & TRUST COMPANY. NOTICE IS HEREBY GIVEN by the undersigned, as Receiver of the American Bank & Trust Company of Great Falls, Montana, a corporation, to the creditors of, and all persons having claims against The American Bank & Trust Company, to present such claims, with the necessary vouchers, to the undersigned, as Receiver of the American Bank & Trust Company, at the office of the Receiver in the Bank of The American Bank & Trust Company, No. 200, Central avenue, Great Falls, Montana, which said undersigned selects as his place for the transaction of the business connected with The American Bank & Trust Company, and that all said claims must be presented to said Receiver on or before the 31st day of May, 1922, and if not so presented within said time such claims will not be considered by the undersigned. Dated February 21, 1922. A. W. SPRINGHORN, As Receiver of The American Bank & Trust Company.

7. February 24, 1922 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, February 24, 1922

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# Final Date Fixed # for Claims on Bank All claims of creditors against the American Bank & Trust company must be presented on or before May 31, if they are to be allowed, according to an order signed Thursday by District Judge J. B. Leslie. The order was signed in response to a petition from A. W. Springhorn, receiver of the bank.

8. April 1, 1922 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, April 1, 1922

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City Receives Check for $40,250 to Cover Bank Failure Loss City Treasurer W. P. Wren Friday received a check for $40,250 from the National Surety company, covering its liability for the amount of city funds on deposit in the American Bank and Trust company. With the exception of a personal bond covering a small amount, the city is now entirely reimbursed for its funds lost by the closing of the bank. Payment of the check has been delayed because of the demand of Mayor R. M. Armour and City Attorney Charles Davidson that the surety company pay interest on the amount from the time the bank went into a receivership. After several conferences, counsel for the surety company agreed to pay an additional $250 as interest.

9. May 14, 1922 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, May 14, 1922

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# CLAIMS ON ALL # BANK DEPOSITS # MUST BE FILED Receiver Warns Customers That May 31 Is Final Day for Action. Warning that depositors of the American Bank and Trust company must file claims before May 31 or the claims will not be considered was issued Saturday by A. W. Springhorn, receiver. The time limit on the filing of creditors' claims applies equally well to depositors, Mr. Springhorn said, and there are now but 30 per cent of these claims filed. He urged that the depositors seek to make their filings as soon as possible, since only 15 days remain and thus any sudden rush on the last of the month will be avoided. Many of the depositors, he said, had failed to make the filings, believing that it was enough to appear on the bank books as depositors, while others felt that signing up with the reorgan-

10. June 2, 1922 The Glasgow Courier Glasgow, MT
Article from The Glasgow Courier, June 2, 1922

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GREAT FALLS BANK MAY LOSE OVER $500,000.00 Failure of the depositors to agree upon arrangements for reopening the institution threatens a loss of $80,000 in assets of the American Bank and Trust company of Great Falls, according to A. H. Gray, chairman of the reorganization committee. "A letter recently received from one of the eastern creditors of the American Bank and Trust company which had a claim against the bank for about $70,000 secured by collateral notes to the amount of about $150,000" said Mr. Gray, "advises that they have foreclosed and sold this collateral. Whether the collateral brought sufficient in the sale to pay off this creditor or whether there will be a deficiency which may be filed as an unsecured claim with the receiver, the same as other depositors, the letter did not state. But this is certain, that unless some arrangement can be made to redeem this collateral the depositors have lost $80,000 on this one transaction. "The letter stated that if the bank reorganized and reopened that it is possible that an arrangement may be made with the purchaser by which a redemption may be made, but there is nothing certain about this. It is only a question of time until all the eastern creditors will do likewise and, when they do, all hope of reorganization will be past and our depositors will be obliged to take the loss of more than $500,000."

11. September 10, 1922 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, September 10, 1922

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HEAR SKELTON ON PLANS FOR CLOSED BANK Superintendent Must Approve Before American Can Be Reorganized. L. Q. Skelton. state superintendent of banks, will be in Great Falls Tuesday to confer with the depositors' reorganization committee on matters affecting the proposed reorganization of the American Bank & Trust company, according to an announcement made Saturday by Hugh M. Jones, chairman of the committee. Approval of Skelton of the reorganization work is necessary before its plans can be carried out. He will address a meeting of the depositors who have not signed the extension agreements for reorganization Tuesday evening at 8 o'clock at Carpenters' hall, 716 First avenue south. The committee has asked that none but those who have not yet signed up be present at the meeting. Jones urges that all of those who have not signed the agreement be present to hear Skelton, as he will outline the attitude of his department and something of the plans for the bank. Jones said that the work of signing up the depositors is progressing well but slowly, and he asked that all who care to sign call at his office at 121 Central avenue. Some $110,000 of deposits have not yet been signed up, it is said, and of this all, with the exception of a few thousand dollars, are live accounts that must be signed before there is a possibility of opening the bank again. A small part of these accounts are of persons who cannot be reached and those whose addresses are unknown. All those whose principals are known must be signed up, it was announced, before the bank can be opened. Eastern banks have realized on some $230,000 of the assets of the bank, clearing about half of the obligations to the eastern banks, according to members of the depositors' committee. A few collections have been made through the office of the receiver.

12. September 16, 1922 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, September 16, 1922

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AMERICAN OPENING UNLIKELY, VIEW ADOPTED BY COMMITTEE Gray Tells Depositors That Bank Doing Business Again Is Not Probable, Active Campaign Is Abandoned. that he considers reorganization hopeThe depositors' còmmittee on the less because of the attitude of these reorganization of the American Trust obstinate depositors. Miss Watson, who has been co-operating with a deand Savings bank has decided to drop positors' committee, has been withany active campaign for the reopening drawn from the work. The reorganof the institution and only voluntary ization committee can see no further action by the depositors who have not use of further effort on its part and yet signed up will open it, according to we had apparently just as well abandon a statement issued Friday by Chairthe matter now and let the receiver man A. H. Gray of the committee. clean it up. The statement reads: Thanks Committee Members "I am very sorry to have to say to the depositors of the American Bank "I want to thank the men who have and Trust company that there is apworked with me on the reorganization parently no hope of the bank ever recommittee. They have given largely, opening and that further effort on the unselfishly, and willingly of their time. part of the stockholders' reorganizaThey recognized this as a community tion committee may as well be abanproposition. It meant the saving of doned. more than $1,000,000 worth of deposits "For the past eight months, this comto our local people. It meant, if the mittee has worked unceasingly and with bank reopened, that $500,000 worth of the utmost hope that it would be posbank certificates would immediately be sible to get the bank reopened and the put in circulation in the hands of dedepositors protected from what must positors in Cascade county. otherwise be absolute loss. During this "The members of the depositors' time, depositors representing more than committee and the scores of other de$1,000,000 in deposits and about 3,000 positors not actively identified with the individuals have signed up and are cocommittee have done noble, unselfish operating in the undertaking. But a work. They have devoted much time little minority of depositors, representwithout compensation in their efforts ing less than 10 per cent in amount in behalf of their fellow depositors. and numbers are holding out and reI certainly appreciate their splendid fusing to co-operate, with the apparent co-operation and only regret that they hope that the bank will reopen and that must see their efforts come to naught they will be free to draw out their because a few of their fellow deposmoney at the expense of the other deitors insist on getting an unfair adpositors. The state superintendent of vantage over the others. banks has stated absolutely that he will "The stockholders really have very not permit the bank to reopen under little at stake in the failure to reorsuch conditions. ganize as compared with the depositors. Blames "Obstinate" Depositors The stockholders only have $225,000, as against $1,200,000 of the depositors. "It is a crime that a little bunch of Furthermore, the stockholders can, obstinate depositors should be able to most of them stand their loss better take this stand and cause the great than the average depositor. number of depositors who have signed "The stockholders' reorganization up to suffer such a financial loss. but committee does not deem that any unfortunately there is no law to compel useful purpose would be served by its anyone to co-operate and unless their trying further to induce the unsigned own sense of fairness and unselfishness depositors to sign. The only alternato their fellow-depositors impel them tive is to let the bank be liquidated to co-operate, then all efforts heretoby the receiver in regular course. This fore made are lost and further effort cannot well be done under five to ten to reorganize is useless. years' time. At the end of that time "The stockholders of the bank are the depositors may hope to receive prepared to recapitalize the bank by their final dividend on their deposits. voluntarily paying in the entire amount "If the depositors who have not of original capital, or $100 per share. signed do so at once, voluntarily. and This. however, would not open the bank turn in their cards, then the stockunless depositors all likewise did their holders will recapitalize the bank with part. the required cash and reopen. Other"Mr. Skelton. the state superintendwise. no further effort need be made ent of banks. has been very earnest to save the wreck. The stockholders and sincere in his efforts and desire cannot do more than recapitalize the to have the bank reopen. His primary bank with cash. This they are ready object is to save depositors from unto do. It is entirely up to the unnecessary loss. He knows the result signed depositors. We do not intend of banks being liquidated through reto solicit them further. If they want ceiverships. He has given three days to sign up voluntarily and at once, of his time this week here to perwell and good. but if not, all further sonal work and effort to assist the effort to reorganize and reopen the local committee. A meeting of the unbank will be abandoned. the offer to resigned depositors was arranged for last capitalize will be withdrawn and the Tuesday evening to meet with Mr. Skelmatter can take its course with the ton and discuss the situation. Only receiver and we shall try to get it off a handful responded. Mr. Skelton has our minds and forget it." returned to Helena, and has announced

13. September 23, 1922 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, September 23, 1922

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LEGAL ADVERTISING NOTICE Default having been made in the terms and conditions of that certain conditional sale contract dated the 31st day of August, 1921, by and between C. H. Brown, purchaser, and Great Falls Auto and Truck company, seller, which contract was filed in the office of the County Clerk and Recorder of Cascade County. Montana, on the 14th day of September, 1921, and thereafter assigned to the American Bank and Trust company, the present owner and holder thereof, and the sum of $536.80, with interest, together with storage and expenses, now being due thereunder, NOW, THEREFORE, the undersigned, as Receiver of said American Bank and Trust Company, will sell, under the terms and conditions of said contract, at public auction, on the 30th day of September, 1922, at 2 p. m. of said day, to the highest bidder for cash. at Pierse Auto company garage, 526 First Avenue North, Great Falls, Montana, the following described property set forth in said contract: One (1) Velle Sedan, Model 1918, Factory No. 56539, and the proceeds of such sale will be applied as in said contract provided. Dated this 22nd day of September, 1922. A. W. SPRINGHORN, Receiver.

14. October 7, 1922 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, October 7, 1922

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# Court Cuts Wage # of Bank Receiver # to $300 a Month An order was issued in district court Friday by Judge J. B. Leslie modifying the salary of A. W. Springhron, receiver of the American Bank and Trust company, the salary to be fixed at $300 a month, instead of $500. The judge's order reads: "An order having heretofore been made fixing the compensation of the receiver in the above entitled cause at $500 per month; now, in view of the affairs of said receivership and the character of work yet to be done, it is ordered that the compensation heretofore fixed be, and the same is hereby modified so that the salary of the receiver be fixed at the sum of $300 per month until further order of the court."

15. November 2, 1922 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, November 2, 1922

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AMERICAN BANK CHIEFS EXPECT SPEEDY ACTION Court Order Grants Committee Use of Present Offices Until Nov. 15. Another month of effort on the part of the depositors' committee. which is endeavoring to reorganize and reopen the American Bank and Trust company, has advanced the work until the committee Wednesday expressed confidence that the plan can be successfully matured within a short time. About 80 depositors have not signed the reorganization agreêment, but the committee feels that the success or failure of the work rests with six or eight owners of larger accounts who still are withholding their signatures. Time Extended Upon the solicitation of Hugh Jones, chairman of the committee, District -Judge J. B. Leslie Wednesday extended for 15 days the period during which the receiver may retain the quarters formerly occupied by the bank. A short time ago Judge Leslie issued an order in which he said he would require the receiver to occupy less expensive offices if the reorganization plan was not completed by November 1, but with the showing made by the committee during the last month the court extended the time to November 15. The chairman was given to understand that observation of good business methods would compel the court to definitely order the removal of the offices on that date if the reorganization then is not perfected. The bank's furniture and fixtures will be sold under a court order if the receiver's offices are moved and the committee has stated that once this is done and the banking rooms vacated, it will be useless to attempt to continue the reorganization work. With this situation obtaining, Jones said Wednesday evening that the next 15 days will mark the final effort to reopen the bank. With Jones on the committee are J. E. Healey, Bernard Duffy, John Knutson and Charles Hanson. The committee has requested depositors who have not signed to call at 121 Central to procure information on the plan under consideration. Favors Denied Some of the depositors who have not signed have told the committee that they will enter into an agreement that would give them special privileges if the reorganization were effected, but all such proffers have been and will be rejected, Jones stated. Jones asserted that the committee never will consider giving a special advantage to any depositor and that rather than consent to such an arrangement the receivership will be continued until the banks' affairs are wound up.

16. November 17, 1922 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, November 17, 1922

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# ABANDON HOPE # OF REOPENING # AMERICAN BANK Court Orders Fixtures Sold; Nov. 25 Final Date for Depositors' Action. Bank furniture, fixtures and equip- ment of the American Bank and Trust company were Thursday ordered sold by November 25 in a district court or- der, signed by Judge J. B. Leslie. Re- ceiver A. W. Springhorn was ordered to advertise a date not later than No- vember 25, on which he will offer the bank property for sale. All sales must be reported to Judge Leslie by Novem- ber 30, and confirmed by him before they become effective, the order reads. "It is still possible to reorganize and reopen the bank. But if done at all it must be done before the sale of fix- tures is confirmed by the court," A. H. Gray, chairman of the committee which, since last February, has been working to reopen the institution. The bank did not open on December 2, 1921, by vote of the directors. Do Not Expect to Open "Depositors representing about $1,000,000 have signed up with the com- mittee, but because a small minority, representing $50,000, refuse to take like action plans are held up. If this mi- nority of 20 people will sign up under the terms laid down by the state bank examiner we will yet be able to reopen the bank. But they have failed to do so in the past nine months and prob- ably will not change their attitude now. "If these 20 depositors would sign up the bank could reopen with every reasonable assurance that all deposit- ors would then in the course of time be paid in full. If they do not sign the matter is ended and the bank can- not open. The stockholders have very little at stake in the failure as com- pared with the depositors. The fate of 4,000 depositors is in the hands of 20 unsigned depositors. If these 4,000 depositors can persuade the 20 to sign, the success of the bank is assured. "Judge Leslie has just made an order directing the receiver to advertise the furniture and fixtures of the bank for sale for November 25, but I presume that if these 20 unsigned depositors would sign up at once so that the re- opening of the bank might be assured the sale of these fixtures might be stopped. If, however, these are not signed and the fixtures are sold then all further hope of reorganization must be abandoned. Twenty depositors out of 4,000 are absolutely blocking the success of the reorganization." Judge Leslie's order, handed down by him as a step to reduce the expense of the receivership, follows: Court Granted Time "For the purpose of giving the com- mittee on reorganization of the Amer- ican Bank and Trust company time in which to secure a sufficient number of signers of depositors in the said bank necessary to reorganize the bank, the 30th day of October was the date fixed within which such signers might indi- cate a willingness to take steps to reorganize said bank, and thereafter the committee on reorganization hav- ing asked for a further extension of time, until the 15th of November, and an order having been made granting such extension, and no reasonable as- surance having come to the knowledge of the undersigned judge that a suf- ficient number of depositors can be obtained; now, in order to reduce the expenses of conducting the receivership of said bank, the receiver is hereby di- rected to take immediate steps looking to the sale and disposition of the furni- ture, fixtures and equipment of said bank which have come into his hands as receiver, and to give notice of a date certain, not later than the 25th of No- vember, 1922, by publication for a period of not less than eight days in one or more of the local newspapers in Great Falls, on which date or there- after he will offer for sale the said furniture, fixtures and equipment of said bank; and he may receive sealed bids, or sell privately, but all sales must be reported within five days from the said 25th day of November to the court for confirmation before the same is to become effective; and he is fur- ther directed to take such necessary steps under the lease held by the bank of the premises now occupied by him, with a view of vacating and surrender- ing the said premises and to secure less expensive quarters, to be approved by the court."

17. July 5, 1923 Belt Valley Times Belt, Armington, MT
Article from Belt Valley Times, July 5, 1923

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AMERICAN BANK DIRECTORS ASK FOR COURT ORDER TO OPEN UP Chairman Claims Institution Solvent. Would Overrule Skelton Decree. Declare Depositors Satisfied Petition for an order decreeing the to order the bank superintendent to American Bank & Trust to be solvent, reopen the bank, also failed, and for an order terminating the reMr. Gray declined to state Friday ceivership of the banking institution when the bank would be reopened in was filed in distret court Frday by the event that favorable action was A. H. Gray, chairman of the board of given in district court on the petition directors of the bank and acting for filed asking that the receiver be rethe board of directors. This is the moved and the bank declared solvent. first step on the part of the directors Ten days or more will probably be to go over the head of L. Q. Skelton, given the receiver in which to appear state superintendent of banks, in an and show cause why the petition of effort to reopen the institution. the bank's directors should not be The bank superintendent refused a granted. month ago to authorize the reopening "We have gone carefully into the of the bank, which closed December, matter," said Mr. Gray Friday, "and 1921. Efforts of Great Falls residents we believe the bank should be rewho appealed to Governor J. M. Dixon opened. We see no good reason why it

18. January 29, 1926 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, January 29, 1926

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SUPREME COURT SAYS SPRINGER MUST PAY LEVY American Bank Receiver Wins Judgment Against Property Owned by Defendant Tribune's Helena Bureau. Helena, The supreme court has reversed the judgment of the district court of Cascade county in the case of the receiver of the American Bank & Trust company of Great Falls, against Elizabeth and William Springer, an action brought to enforce payment of stockholders liability, and has remanded the with directions to order judgment in favor of the bank. According to the record the defendant. William Springer, became the owner of 10 of the capital stock of the bank on January 15, 1915. and remained owner of the same. The bank having closed December 3. 1921, an assessment of $100 per share was levied June 7, 1923, and Springer refused to pay the assessment on his stock. The receiver brought action and recovered judgment against Springer in the sum of $1,000 and interest. and an execution was issued, but it was found that five days after the levy of the assess on the stock of the bank Springer had deed purporting to convey his wife, Elizabeth Springer, all of his property, valued at $8,930. for a consideration of $1. Thereupon the execution was levied upon the interest of Springer in the real property. The deed in question purported to be dated in March. 1912. and was acknowledged before notary public on March 12. 1912. was delivered to the county recorder by William Springer in person June 12. 1923. and after being recorded was returned to him. There was no showing that the deed had ever been out of the possession of Springer nor that the prop erty had ever been out of his possession or control. The cause was tried before a jury which made special findings. one that the deed bad been delivered to Elizabeth Springer before the closing of the bank. and one that the transfer was made in good faith without intent to hinder, delay or defraud the plain tiff as receiver of the bank. The dis trict court adopted the findings of the jury and entered judgment in favor of the defendants, from which plaintiff appealed to the supreme court. The supreme court. in its opinion delivered by Associate Justice Stark. after quoting and discussing the statutes and court rules bearing upon what constitutes delivery of a deed, concludes: Upon the record before us. when the evidence closed. the plaintiff had made out prima facie case of non delivery of the deed prior to the time of the levy of the assessment upon the stock of the defendant William Spring er. The defendants did not produce any evidence prima facie case. It follows that the findings of the jury upon the two questions submitted to them were not supported by any evidence whatever: that the same should have been rejected by the court and judgment should have been entered in favor of the plaintiff. "This being an equity case, the judgment is reversed and the cause manded to the court with rections to reject the findings of the jury and to make findings and judgment favor of the plaintiff in accordance with the prayer of his complaint.'

19. June 16, 1926 The Independent-Record Helena, MT
Article from The Independent-Record, June 16, 1926

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BANK CREDITOR IS AGAINST BY SUPREME COURT Montana's supreme court yesterday affirmed a judgment of the district court of Cascade county relative to a bank case dating back to 1921, in which Wellington Rankin, then attorney general, intervened in the action between the American Bank and Trust company, of Great Falls, through S. E. Jensen, against Receiver A. W. Springhorn. Jensen asked an order the court allowing his claim as creditor of the insolvent bank in process of liquidation. He presented his claims at Great Falls after May 31, 1922, the date set by the court as limit for filing claims. The bank closed December 1921, and the district court issued an order appointing receiver and providing that no claims should be allowed by him after May 31, 1922. In February 1923, Jensen filed his claim and it was by the receiver. He petitioned the court for its settlement refused. From this decision he appealed. The Great Falls bank had deposited certain notes with the New York Trust company tas security for loan. When it defaulted in its payment, the security was sold. The purchaser collected some of these notes and presented its claim to the bank's receiver for the balance. Jensen declared that there was nothing to prevent the court from doing so. He argued that, while the New York bank could not have collected more than the amount of the lotan, the purchaser had a right to rely on the endorsement of the Grea: Falls bank for the entire face value of the notes.