11438. First National Bank (Libby, MT)

View Charter #9594 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
9594
Charter Number
9594
Start Date
*
Location
Libby, Montana (48.388, -115.556)

Metadata

Model
gpt-5-mini
Short Digest
47bd65ec

Response Measures

None

Description

Articles (1929 and 1935) refer to the First National Bank of Libby having closed several years ago and having gone into the hands of a receiver. No newspaper text describes a depositor run; the bank was closed and placed in receivership (permanent closure). No exact closure date is given in the provided clippings.

Events (2)
1. * Receivership
Newspaper Excerpt
When the bank went into the hands of a receiver, this uncancelled warrant for $500 was found in the file as an asset. (1929/1935 article recounting the earlier receivership)
Source
newspapers
2. * Suspension
Cause
Government Action
Cause Details
Bank closed and placed in the hands of a receiver (receiver appointed following closure).
Newspaper Excerpt
was reciever of the First National bank at Libby, when it closed several years ago.
Source
newspapers

Newspaper Articles (2)
1. April 25, 1929 Western News and the Libby Times Libby, MT
Article from Western News and the Libby Times, April 25, 1929

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Article Text

# GREAT NORTHERN MAN # BOOSTS SHEEP INDUSTRY Eureka Journal: W. M. Wayman, agricultural development agent for the Great Northern, who makes his home at Valier, where he is engaged in farming and sheep growing, was a visitor here last week. Mr. Wayman came at the request of General Immigration Agent Leedy to make a study of our valley and conditions in order to help with the colonization program the Great Northern has under way here. Mr. Wayman is remembered by some of our people as having been reciever of the First National bank at Libby, when it closed several years ago. He is a successful sheep grower and is much impressed with the possibilities for expansion of that industry in the Tobacco valley. The following clipping, which he had in his possession, although published last fall, may be of interest to some of our readers who are interested in the sheep game or who contemplate entering it: "Helena, Oct. 25. -The Cooperative Sheep company which was organized some two years ago to put sheep out on shares in southwestern Montana has just completed distribution of earnings amounting to $165,000. One-half of this went to ranchers who had sheep on shares, and the other half to the company. All of this was new money, proceeds from wool and lambs for the year. The company has out in the neighborhood of 17,000 sheep, mostly in bunches from 100 to 500. "The plan is for the company to furnish the ewes and necessary number of bucks, pay the taxes, one-half of expenses of supervision. The ranchers pay the balance of the expenses, and the proceeds are divided equally between the ranchers and the company. The company during the two years of its existence, paid the stockholdeers 34 percent in cash dividends and has reduced its indebtedness in the past year some 40 per cent. "The company was incorporated a short time ago by Senator T. J. Walsh, Governor J. E. Erickson and Lewis Penwell. The directors for the first three months were Ben Cardwell and Joseph H. Hanlon of Billings, P. H. Hawkins, Absarokee, and W. T. Pigott and Lewis Penwell of Helena. This new company has purchased about 6,000 head of breeding ewes, which are now being delivered to the lessees in the neighborhood of Columbus, Red Lodge, Absarokee, Laurel and Billings."

2. October 3, 1935 The Western News Libby, MT
Article from The Western News, October 3, 1935

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Article Text

Turner. A. N. Richard and H. W. Miller were witnesses for the applicant. Bartholomew Sullivan is also a new citizen, his witnesses being James Mahoney and George E. Hennessy. The third new citizen was Duncan John McDonald, his witnesses being Sam G. Ratekin and Michael A. Shanahan. The seven children of Romeo Garrison were declared neglected and dependent children and all were committed to the orphan's home with the exception of Evaline Lorraine Garrison who was committed to the care and custody of the child protection bureau. J. Alford Peltier of Eureka was granted a divorce from Juanita Peltier, he to have the children for 11 months of the year, she for one month. George McGlenn and wife of Eureka were given an order of adoption for Shirley Jean Loftsgaarden. # Important Case Argued. The case of James M. Blackford vs. the City of Libby was argued before the court and the matter taken under advisement. In this case all the facts were agreed upon by the parties thereto and no testimony was taken, the determination of the case being wholly a matter of law. The case involves the collection of a $500 warrant held by Blackford against Improvement District No. 15 of the City of Libby, the improvement district having been organized for the construction of a sewer in west Libby. This district was unable to pay all the warrants issued against it because certain of the property in the district defaulted the payment of the improvement taxes. Therefore there was no money to pay four or five of the last warrants. That condition, however, does not cover all of the present controversy. It turns out that one of the district's warrants in the sum of $500 was paid by a former city treasurer twice through an error, and therefore, as Blackford contends, the city had no money with which to pay his warrant because of a mistake by the city treasurer. It is alleged that a certain warrant was paid by the then city treasurer, John Johanson, who was at the same time cashier of the then First National Bank. It is further alleged that Johanson failed to cancel the warrant when paid and retained it in the files of the bank as an asset of the bank. When the bank went into the hands of a receiver, this uncancelled warrant for $500 was found in the file as an asset. It was thereupon presented by the receiver of the bank to the acting city treasurer, who was at that time W. S. Spencer, cashier of the First State Bank. The warrant, not being cancelled on its face, was paid by Spencer, which was in effect paying it the second time. Soon thereafter it was discovered that the warrant had been paid twice and demand was made on the received of the First National Bank to return the money. This he refused to do. It is further alleged that the city officials took no action to recover the money either from Johanson, from the receiver of the First National Bank or from Spencer, or their bondsmen, until too late, such action being outlawed by the statute of limitations. Blackford therefore contends that it was through negligent action of the city's officials, or agents, that there was not enough money in the improvement district's fund to pay the warrant held by him. Therefore he is suing to recover. The city contends that there are certain stipulations in the law covering such cases that relieves the city of any liability in the matter. Mr. Blackford and E. M. Child of Kalispell appeared as attorneys in behalf of Mr. Blackford and Hans Walchli of Kalispell as the attorney for the city.