11472. Stock Growers National Bank (Miles City, MT)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
3275
Charter Number
3275
Start Date
July 29, 1893
Location
Miles City, Montana (46.408, -105.841)

Metadata

Model
gpt-5-mini
Short Digest
57a861e1

Response Measures

Full suspension, Books examined

Other: Receivership appointed; criminal prosecutions of officers followed; dividends paid to creditors.

Receivership Details

Depositor recovery rate
55.0%
Date receivership started
1893-08-09
Date receivership terminated
1907-09-30
OCC cause of failure
Fraud
Share of assets assessed as good
15.5%
Share of assets assessed as doubtful
48.6%
Share of assets assessed as worthless
35.9%

Description

A depositor run forced the bank to close (suspend) July 29, 1893; Comptroller/receiver took charge afterward and the bank remained in receivership (E. W. Knight Jr. appointed), with criminal prosecutions and eventual dividend payments to creditors. Later revelations of misappropriations/embezzlement by management are reported in subsequent articles. Dates taken from newspaper reports (run/suspension July 29, 1893; receiver took charge by Aug 9–10, 1893).

Events (6)

1. December 20, 1884 Chartered
Source
historical_nic
2. July 29, 1893 Run
Cause
Bank Specific Adverse Info
Cause Details
Continuous withdrawals driven by depositor fears tied to inability to realize on assets and money stringency; officers said bank was in sound financial condition but could not meet unusually heavy demand.
Measures
Closed doors (suspended) at noon; telegraphed Comptroller of the Currency; notice posted; local meeting agreed to support orderly payments by other bank for legitimate purposes.
Newspaper Excerpt
Shortly after noon to-day the Stockgrowers bank of this city closed its doors. this action being forced by a quiet but continuous run that the bank has had to meet for more than a week past.
Source
newspapers
3. July 29, 1893 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Temporary suspension declared due to money stringency and inability to realize on assets amid heavy withdrawals; directors and officers expressed confidence but suspended and awaited instructions from Comptroller of the Currency.
Newspaper Excerpt
notice was posted on the doors of the Stock. growers bank that the bank was obliged to temporarily suspend on account of the money stringency, but all depositors will be paid in full.
Source
newspapers
4. August 9, 1893 Receivership
Source
historical_nic
5. August 9, 1893 Receivership
Newspaper Excerpt
I took charge Aug. 9, 1893. / Comptroller Eckels yesterday appointed receivers of national banks ... E. W. Knight, Jr., receiver of the Stockgrowers' National bank of Miles City, Montana (reported Aug 10, 1893). / Receiver Knight testifying ... took possession of the bank (reports).
Source
newspapers
6. January 5, 1894 Other
Newspaper Excerpt
A dividend of 15 per cent has been declared for the benefit of the creditors of the Stock Growers National bank. ... E. W. Knight, Jr., Receiver.
Source
newspapers

Newspaper Articles (22)

Article from The Yellowstone Journal, July 29, 1893

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The Stockgrowers Bank Closes. Shortly after noon to-day the Stockgrowers bank of this city closed its doors. this action being forced by a quiet but continuous run that the bank has had to meet for more than a week past. This morning the bank opened with enough cash on hand to meet even the average daily demand of the past week and still have a comfortable sum left. but the idea seemed to have gained possession of the depositors. that their money was safer in their own hands. and the demand for payment was so much larger during the forenoon than at any time previous, that in the opinion of the officers of the bank here present, there was nothing to do but to close the doors and await instructions from the Comptroller of the Currency, who was telegraphed of the situation at once. It is scarcely necessary to say that the bank is in sound financial condition and that no one will lose anything by the suspension. An inability to realize on assets that are gilt-edged operated here as elsewhere in forcing a suspension. The utmost contidence in an early resumption is expressed by the officers and directors of the bank. The notice posted on the doors of the bank reads as follows:


Article from The Indianapolis Journal, July 30, 1893

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Bodifield, the treasurer and general manager, was made receiver. The assets are $ 1000 and liabilities $37,000.1 EAU CLAIRE. Wis.. July 29.-The Com mercial Bank, capital $50,000. did not open this morning. having been placed in the hands of Bryon A. Buffington, as receiver: F.C. Allen. the president. said: "Depositors will not lose is dollar." There were light runson other banks. HAMILTON, O., July 29.-The Macneale & Urban Safe and Lock Company. one of the oldest safe firms in the country. has assigned to Howard Douglass, of Cincinnati. Assets, $160,000; liabilities unknown. PATERSON, N. J.. July 29.-The Beatty Carpet Manufacturing Company. at Little Falls, employing three hundred men. closed down to-day for an indefinite period. BETHLEHEM, Pa., July 29.-The Bethlehem Iron Company's steel mill will resume operations in full blast ou Monday next, after an idleness of a month. NORTHBORO, Mass., July 29.-All of the shell and horn goods manufactories are closed on account of the state of trade. BUFFALO. N. Y., July 28.-The Barber Asphalt Company have discharged one hundred men because of dull times. MILES CITY, Mont., July 29.-The Stockgrowers' National Bank closed to-day.


Article from The Helena Independent, July 30, 1893

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STOCKGROWERS BANK. Temporarily Suspends on Account of Money Stringency. Special to The Independent. MILES CITY, July 29.-At noon to-day no. tice was posted on the doors of the Stock. growers bank that the bank was obliged to temporarily suspend on account of the money stringency, but all depositors will be paid in full. The First National kept its doors open all day and some depositors, principally women, made a little run on it after the elosing of the Stockgrowers. After banking hours a meeting of business men was held at the Miles City olub to consider the course of action proposed by the First Ns. tional, which was to pay all demands for legitimate purposes, but to refuse payment when it was evident that the demand was made for the purpose of holding the money. The resolution was approved and imme. diately adopted. A paper has been signed by the officers and directors of the bank, W. B. Jordan, Goo. Miles, Jno. Carter, Frank Robertson. Henry Tusler, and J. W. Strevel, guaranteeing personally and individually, if patience and common sense be exercised, that no depositor shall lose n sent.


Article from The Yellowstone Journal, July 31, 1893

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Monday. July 31, 1893. THE feeling in the commercial and financial circles of Miles City exhibited a marked improvement to-day over the depression of Saturday. caused by the closing of the Stockgrowers National Bank. The action taken by the citizens at the meeting Saturday seems to have had a very quieting effect. and there was no semblance of a run on the First National to-day. Business progressed in the ordinary way and deposits were received and checks paid as if there was no panic existing. This is as it should be. Situated as we are, remote from other localities and living as it were among ourselves. there is no cause for any excitement. The men who have always been solvent with us. are solvent to-day. and the inability to realize on assets is the only clog in the way of easy transaction of business. We believe it would be shown when the affairs of the Stock Growers National bank are made public. that it is abundantly able to pay dollar for dollar to every creditor and have money left. and the directors of the First National have proclaimed publicly that every depositor can have abundant security for his claim. if he feels in the least concerned abont its safety. Some little concern has been expressed in regard to what action will be taken tomormor by the county commissioners in regard to the county funds that are in the Stockgrowers Bank. but after diligent enquiry we feel authorized to state that no action will be taken by the Commis. sioners until the condition of the bank is made public. and not then will any steps be taken that will in any degree embarass the Treasurer or his bondsmen. The Commissioners fully realize that this is no time to press settlements. where it is evident that the county is abundantly protected. and they will not do it.


Article from Grand Rapids Herald, August 10, 1893

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Notes About the Capitol. Comptroller Eckels yesterday appointed receivers of national banks as follows: W. G. Sykes, receiver of the First National bank of Starkville, Mississippi, and E. W. Knight, Jr., receiver of the Stockgrowers' National bank of Miles City, Montana. The president did not come to the white house yesterday, but remained at Woodley, his country place. There are urgent matters requiring his consideration, to which he can give only quiet and uninterrupted attention in his country retreat. It is understood that Speaker Crisp has determined to place Representative Aldrich on the committee on District of Columbia. The gold in the treasury was yesterday $3,157,857 above the$100,000,000 gold reserve. No nominations were sent in to the senate yesterday.


Article from The Helena Independent, August 16, 1893

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Money Matters at Miles. Special to The Independent. MILES CITY, Aug. 15.-The city council has made the tax levy on city property for the current fiscal year eight mills on the dollar of valuation fixed by the county board of equalization. City Treasurer Allertion had the municipal funds in the suspended Stockgrowers bank. the city balance being about $1,400. W. F. Batchelor. president of the Stook. growers bank, Col. George Scheetz, one of the stockholders, and Sydney Paget, heavy depositor therein. were Mr. Allerton's bondemen. A motion was agreed to at last night's meeting of the council that Treasurer Allerton furnish is new bond for $8,000, the liability of the old bondsmen for tue sum tied up in the Stockgrowers bank not being vacated. Goo. Burmiston, County Treasurer Savage's deputy, has been employed by Receiver Knight as an expert accountant to aid in straightening out the accounts of the Stockgrowers bank.


Article from The Helena Independent, August 25, 1893

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M LES CITY NEWS. Change of Officers-The Electric Light and Water Company. Special to the Independent. MILES CITY, Aug. 24.--The resignation of H. F. Bachelor, president of the suspended : tookgrowers bank. AB secratary. treasurer and trusted of the water and electric light company, has been aco pted. Attorney J. E. Light was elected trustee and J. B. Colline sec stary and treasurer. The company is on a paying basis but is short of ready oash, on account of the tying up of the city funds in the Stockgrowe N bank and the general scarcity of money. Mayor Rvan was appointed by the city council as a committee to inquire into the condition and probable va'ue of the company's plant. with n view to its purchase by the city at some future time. City Trensu er Allerton has furnished the new bond required from him, for *8, 000, which has been accepted. with G. M. Kirwan, Sydney Paget and George Scheetz BR anreties. The county fun 8 in the Stockgrowers bank amount to $52,800, and the county attorney has been directed by n resolution of the county commissioners to bring suit against the treasurer and such bondemen as fail to 81 pear before the board and give satisfactory security. Eight of the running horses from Anaconda have arrived he 0 to remain for the fall race meeting which takes place the first week in September.


Article from Fergus County Argus, October 26, 1893

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just killed a yearling colt and was making a meal from the carcass when Mr. Metzell discovered him. Tuesday it came to the knowledge of the officials of the First National bank that R. J. Martin & Sons had given a mortgage for the sum of $19,995 to C. M. Bair, covering all of their sheep, horses and cattle and farming implements. The mortgage was filed with the county clerk Oct. 6. R. J Martin & Sons being heavily indebted to the First National, attachment papers were gotten out as soon as the transfer was discovered and the sheriff hasgone out to sieze all of the Martin property embraced in the mortgage. The First National has attached for $18,500. and Donovan & Spear have a claim amounting to $360. The matter will now be taken into court for settlement.-Billings Gazette. Harry F. Batchelor, president of the Stockgrowers' bank of Miles City arrived from Virginia on Thursday of last week. Soon after his arrival Deputy United States Marshal Hawkins arrested him on a warrant charging him, first, with making false entry of a loan of $3,500 to A. F. Burleigh, when in fact there was no loan; second, the entry of a loan of $5,000 to A. C. Logan, when in fact there was no note; and third, the embezzlement of $4,700. Mr. Batchelor assured E. W. Knight, Jr., receiver, that he would come back if at any time his presence was desired, so he was wired for and came. That criminal proceedings were instituted was quite a surprise to him. It is rumored that E. E. Batchelor, the cashier, was arrested in Pittsburg the same day. Monday night about 5:30 a warrant for the arrest of Will Hanks, late president of the Merchants National bank, was placed in the hands of Sheriff Hamilton on a complaint sworn out by L. G. Phelps. charging him with embezzling fifty shares of Carcade bank stock of the par value of $100 each which had been assigned to George A. Wells, as cashier of the Merchants bank in September, 1891, and converting them to his own use. The arrest, while a great surprise to the public, was not unlooked for by Mr. Hanks, who has been expecting this final effort of his detractors to cast discredit on his business reputation. He at once accompanied the sheriff to the office of United States Commissioner Pomeroy, where he was arraigned and the examination fixed for next Monday. The bail bond was fixed at the high sum of $5,000 by Commissioner Pomeroy, but it was promptly furnished, H. P. Rolfe and C.D. Wilt going on the bond. Mr. Hanks says that he has no fears as to the result of this final effort of maliciousness. The transaction referred to in the complaint was a straightforward business transaction and not a crime and the facts will be shown up in proper time.-Leader.


Article from The Yellowstone Journal, November 1, 1893

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through the records of the Stock Growers National bank, which show that it was paid on Oct. 25, 1892. The note itself remains uncancelled in my possession as receiver. I have also traced the note, No. 4857 through the records, and find no such note signed by Andrew F. Burleigh. There is a copy of that note. There is no record of the payment of note No. 4857. In a general way I am acquainted with the handwriting of H. F. Batchelor, but not as an expert. I am well enough acquainted with it to tell whether the Burleigh entry is in his handwriting. I should judge it was. At this point Mr. Porter asked for an adjournment until this morning at 10 o'clock, which was granted. # MORNING SESSION. The examination was resumed at 10 o'clock this morning, with Receiver Knight still testifying, who said: Regarding the Burleigh note No. 4857, it was registered first as No. 4857 and subsequently changed to No. 4858. It also bears the number "3731" with a line drawn through it. This number (3731) is the number of the original Burleigh note for $3,153.92. The bills receivable register shows note No. 3731 as "paid" on Oct. 25, 1892. This statement brought forth an objection by Judge Strevell on the ground that the witness has no right to make conclusions from what certain records show. The commissioner ruled that the witness was only testifying as to the state of those records, and that his testimony was, therefore, admissable, and the witness then proceeded: I found note No. 3731 and the other notes attached to it, on taking possession of the bank. I found with note No. 3731, a note marked "copy," dated May 29, 1891, also a note dated May 29, 1891, No. 3731, signed "Andrew F. Burleigh," also a note with no number, same date, for $873.60, signed "Andrew F. Burleigh;" also a receipt dated Oct. 26, 1891, issued by the Richmond Mining Co. to Wm. Harmon, trustee, for $110.00 for "assessment No. 1 and cost of advtg." on etf. No. 83, for 10,000 shares Richmond Co. capital stock. I find no record of the note of $873.60 on the books of the bank, except in a copy of a letter dated Oct. 24, 1892, enclosing this note to E. A. Gardner, manager, for collection. This letter is signed "H. F. Batchelor, Pt." Quite a tilt preceded the opening of the next line of testimony. The witness was asked how much Mr. Batchelor owed the bank on the 25th Oct. 1892. This was strenuously objected to by the defense as having no connection whatever with the matters set forth in the complaint, and asearnestly insisted upon by the prosecution, and on the assurance of Mr. Porter that he would show connection, the testimony was admitted conditionally, the commissioner reserving the right to strike it out on reconsideration. The witness then proceeded: From the records, as far as I have been able to ascertain, Mr. Batchelor was owing the bank on Oct.25, 1892, in the neighborhood of $14,000. I could not say positively how much stock he had without referring to the stock book. He continued to be a debtor to the bank until the date of its closing. I took charge Aug. 9, 1893. The witness then produced the general journal of the bank, and at request read from it certain entries of Dec. 31, 1890, relating to the Logan transaction. [These entries may be explained to show a transaction by which two notes made by T. H. Logan, dated June 30, 1890, and for $2,500.00 and $2,262.56 respectively, were grouped into one note for $5,048.24, dated Dec. 31, 1890.-Ed.] The prosecution offered the portion of the page showing the entry in evidence, and the defense objected for the reason that other and irrelevant matter was included in the entry. The objection was sustained as to the exclusion of the irrelevant matter, and only that portion of the entry referring to the Logan notes was allowed to go in. The witness then proceeded as follows: The word "Logan" in the entry refers to T. H. Logan. I know this by the entries on the bills receivable register, which shows that the Logan notes referred to in the entry on the general journal as No. 3101, $2,500.00; No. 3102, $2,262.56, and the note for $5,048.24, were made by T. H. Logan. The bills receivable register shows that notes Nos. 3101 and 3102 were paid December 31, 1890, and on the same date the general journal shows a credit to "Loans and Dis." for No. 3101, $2,500.00 and for No. 3102, $2,262.56. The notes referred to as Nos. 3101 and 3102 are still in the bank, uncancelled and unsigned. [This statement will be more clearly understood when it is explained that the notes 3101 and 3102 appear to have been made for the purpose of taking up two other notes made and signed by T. H. Logan. Oct. 7, 1889, and for $2,500.00 and $1,931.43 respectively, but were never executed-Ed.] The witness here produced the Logan notes, Nos. 3101 and 3102, but the defense objected to having them considered until it was shown that they were in the same condition as when the wit-


Article from The Weekly Tribune, December 8, 1893

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The Grand Jury's Report. The grand jury was then discharged finally after making their report. In the report they say: "Your grand jury believes that it would be derelict in the discharge of is duty to the court if it failed to visit severe censure upon the directors of the Livingston National bank. the Merchants National bank of Great Falls. and the Stock-Growers' National bank of Miles City. Each of these institu tions has been compelled to close its doors, suspend payments to depositors and cease doing business. Receivers have been appoir ted in each case by the comptroller of the currency owing to the unsatisfactory condition of the banks' resources. The consequence is that de. positors who in good faith have done business with these institutions and have left their money for safe-keeping in full confidence that it would be honestly returned to them with legal interest have been grossly deceived and wronged, their confidence abused, their earnings frittered away in reckless speculation by those in charge. and, in some instances, have, been deliberately swindled by the bank officials out of sums large enough to be considered comfortable fortunes The grand jurors are of the opinion that the fact of being an officer or director of a national bank ought not to give any man license to swindle and defraud his fellow-men. The unfortunate condition of the banks named above and consequent hardship and loss to innocent depositors, as well as prostration of the business community, are, in the opinion of your grand jurors, largely due to the gross and inexeusable neglect of duty and apparent indifference to their oaths as directors so flagrant and resulting in effects grave and injurious alike to in dividuals and the public that it should be distinctly declared to be a crime by the UnitedStates laws. National bank di rectors owe a duty to the United States. to bank depositors, and the business public, and that duty is to faithfully and bonestly oversee and manage the busi


Article from The Yellowstone Journal, January 5, 1894

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# Dividend No. 1 Now Payable. A dividend of 15 per cent has been declared for the benefit of the creditors of the Stock Growers National bank. All parties holding receivers certificates will present same at my office, for indorsement and receive their dividend check. Parties living out of town can send their certificanes by mail for proper indorsement and return to them, with dividend check. E. W. Knight, Jr., Receiver.


Article from The Yellowstone Journal, April 6, 1894

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WM. GORDON. The Bank Cases. Yesterday afternoon two large boxes of books (the records of the Stockgrow growers bank), weighing nearly 400 pounds, were shipped to Helena by express by Acting Receiver Harmon, who accompanied the documents on the same train. The books are to be used in the trial before the United States district court of Messrs. H. F. Batchelor, C. R. Middleton and C. L. Merrill, who are under indictment in connection with the failure of the bank, and on Monday next will be called up for final disposition. County Clerk Swerdfiger will also take up some of the county records and a number of other citizens have been subpoenaed as witnesses. It will be a great legal battle, aud will consume two or three weeks in the hearing.


Article from The Yellowstone Journal, April 13, 1894

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Dividend No. 2 Now Payable. United States treasurer fchecks in payment of 10 per cent. of claims proved by the creditors of the Stock Growers National bank of Miles City, Mont., may now be obtained at the office of the reseiver upon pr tation of the receivers certificate of proof ofalaim. E. W. KNIGHT, Jr. Receiver.


Article from The Helena Independent, April 14, 1894

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THE BATCHELOR TRIAL Further Testimony as to the Business of the Stockgrowers' Bank. The trial of H. F. Batchelor, of the sus. pended Stockgrowere' bank of Miles City, was continued yesterday in the United States court. Bookkeeper Harman was on the stand all day. He told from reference to the books of the various note transnotions through which different parties and corporations were enabled to incar indebtedness to the bank. Judge Knowles decided to admit the letters bearing on the Billings stock transaction, and they were read.


Article from The Helena Independent, April 17, 1894

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# THE BATCHELOR CASE. Continuation of the Testimony on Behalf of the Prosecution. The trial of H. F. Batche'or, president of the Stockgrowers' National bank of Miles City, moved along quite briskly in the United States court yesterday. The cross-examination of Bookkeeper Harman occupied the morning. Witness admitted that though the books showed the notes of July 5 were entered long after their date, that the transaction might in fact all have taken place on that date and the notes dated back. He was examined concerning the finding of the lette file of defendant's, for the purpose of demonstrating it was in no concealed place. As to the Logan notes he testined that the original notes were always kept with the memorandum notes; that the second set of notes consisted of the amount of the original notes and interest, and the third note consisted of the amount of the second note and interest, and that the original notes never left the pocket of the bank. He was asked if he did not know that a note had been sent to Major Logan for execution and returned, but disclaimed any knowledge of any such transaction. A similar examination was conducted as to the Barleigh note. Witness testified that something over $7,000 of Newman notes hau been included in the H. F. Batchelor indebtedness. Of the paper on which C. L. Me rill was endorser some was secured by chattel mortgage, some was commerci paper discounted, and some was endorsed by third parties. Of the defendant's total indebtedness, $10.626.27 represented interest upon his indebtedness since Aug. 2, 1886, and the defendant's indebtedness in his own name at the suspension of the bank was over $38,000, and that which stood in the name of his father was over $12.000. On redirect examination Witness Harmon gave a history of the indebtedness of the defendant to the banis from its beginning in August, 1886, down to Jan. 1, 1891, showing a steady increase during that period. The original draft transmitted for the cash payment on the Billings stock was identified and read in evidence. Clerk and Recorder Swerdfiger, of Custer county, was then called and produced the assessments liste of the defendant, sworn to and in many instances in his own handwriting, from 1885 to 1893 inclusive, the first year amounting to something over $300, and the highest list of property during the tem being about $3,000. Witness also produced the assessment list of the bank from 1890 to 1893 inclusive, which showed that the stock was not assessed to the individuals but to the bank, and testified that the name of defendant's father did not appear on the assessment roils of that county. Witness also produced the annual state-ment, articles of incorporation, and assessment lists of the Water and Electrie Light company of Miles City for 1893, showing the value of its property to be about $11,-000, its debts about $45,000, and its capital stock pri in $19,000. The nasessments lists of C. L. Merrill for 1890, George Newman for 1891, 1892 and 1893 were also produced. Witness Briggs was then called and testified that he was a representative of the Frederick Billings estate in Billings, and produced and identified three stock certificates of fifty shares each and two notes signed by defendant, each for $6,000. Each, he said, was the property of tue estate and held by him as such; that the stock certificates were collateral to the notes. He also identified a couple of deposit slips and a letter or receipt written in New York, all of which papers were proven subsequently to have been in the handwriting of the defendant.


Article from The Helena Independent, April 21, 1894

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SOON WITH THE JURORS. The Batchelor Trial Drawing to a Close in the United States Court. All the Evidence in the Case Was Completed on Friday. The Opening Argument for the Prosecution Is Begun by Assistant District Attorney Wallace. The trial of H. F. Batchelor for misusing funds of the Stockgrowers' National bank of Miles City, while its president, is nearly over in the United States court, and the case will very likely go the jury to day. The 0 088 examination of the defendant was completed yesterday morning, and then C. R. Middleton, one of the directors of the bank, took the stand. He insisted that the board of di ectors knew of the purchase of the Stebbins stock by defendant. On cross examination he was unable to fix any dates of formal or informal meetings of the board, but he knew the subject had been discussed a dozen times. Before Batchelor went east he was given to understand by the directors that the purchase of the Stebbins stock would be to the interest of the bank. ce-President Harmon, of the bank. was recalled by the defense. He told the story of the time when the bank deposits fell off on account of Stebbins' connection with it. Witness walked into the bank one day and asked Batchelor how he was getting along. Batchelor told him the funds of the bank were getting quite low, and owing to the failure of the Deadwood bank the Stockgrowers' was threatened with a run. While they were talking Judge Bach came in and demanded the county funds. some $13,000, on deposit there. Batchelor referred him to witness, who stepped into the vault with Batchelor. There witness asked Batchelor how much money there was in the bank. Batchelor said the money only amounted to about $1,800. Witness asked Judge Bach what he meant to do with the funds and was told he meant to take them to Helena. "Then," said the witness. "I made & bluff. I gave Judge Bach a draft on the Bank of Commerce of Minneapolis, and took a train right away for that city, and arranged for a oredi & to meet the draft." Witness said that by reason of this and other troubles caused by Steb bins' connection with the bank the feeling was that they should get the Stebbins stock One day Batchelor came in and said he was going to get the Stebbins stock. Witness asked him how. Batchelor eplied that he would give his notes. In consideration of what he had done in the matter of getting the Stebbins stock, Batchelor thought he ought to be made president of the bank. Witness voted for Batchelor for president himself on that account. Witness was asked if he had been told that Batchelor paid for the Stebbins stock with the bank's money. He replied that he had never been sold so. He knew that Batchelor was bor owing money from the bank, and he drew his own inferences. George Sheetz was recalled and testified to the value of the electric light stock In his judgment the plant was worth $50.000 It was never encumbered until just before the suspension of the bank he plant ought to be run on $7,000 a year and the income ought to be $12,000 or $13,000 E. H. Johnson was called by the prosecu. tion. He said that when he bought his stock in the bank Batchelor had told him that the concern would be dec 8 ing div dends in the fellowing June. After he became a director he was away most of the time, but not continuously. He had no knowledge of the discount committee being called to meet at any time and never attended any of their meetings. He never knew of any occasion for attending the meetings. After the bank failed be asked Batchelor for a list of the assets. Batchelor sHil he couldn't give it to him as the books were in the hands of the examiner and he bad no A00088 to them. Witness told Batcheler he ought to be better posted on the condition of affairs. The defense them put on a number of witnesses as to the reputation of the defendant in Miles City. They were D. A. Cory, A. J. Seligman, Col. James Sullivan. Richard Lockey. J. W. Kins E. H. Johnson, E. B. Weirick, T. C. Bach, AI Smith and Capt. Harmon. They all testi fied to the fact that in Miles City defendant stood high and enjoyed unlimited confiMence and was regarded as one of the leading young men of eastern Montana. Tbis closed the testimony for both sides. William Wallace. Jr. began the opening argument for the prosecution during the afternoon He wished to be as fair to the defendant, he said, na he would be to any man accused of bighway robbery or any such offense. He fain would say, however, that in his opinion the offense charged against defendant was a R eater one than that committed by B highwayman. He had violated the trust and cont dence reposed in him by the community When a highwayman stopped a traveler and forced him to surrender his property, the traveler was the only one inconvenienced, and his financial condition might not be seriously impaired. The man charged with crime like that charged against defendant perpetrated crime which was not only far reaching in its effects, but affected a class of small depositors who had int usted their OR nings to the bank by reason of the supposed security affended rather than yield to the temptation of larger profits in the ordinary course of business, The fact Was that defendant had not and never had, during his connection with the bank, any assets except his house and fur niture, his stock in the Electric Light and Water company, and his stock in the bank At the time the bank failed defendant owed it $52,000, of which $40,000 was in his own name and $12,000 in the name of his father. To tuis must be added about $6,500 interest which he had failed to charge on his own notes, having only charged six per cent. when the current rate was twelve De: cent he $52 000 owed. plus the interest withheld, made nearly $60.000. which was about four firths of the entire capital stock of the bank. At the time of the suspension of the bank, accord. ing to his own testimon: defendent's total indebtedness, including that to Site bank, was about $90,000. It was in October, 1891. that defendant began using the funds of the banks, Mr. lace said, to pay for his own ventu ea From then on his connection with the bank was a se 108 of misappropriations and false entries. When he undertook to urchase the Stebbins stock he claimed to expect assistance om friends in Pattsburg and other places in the east, upon which assistance he relied to pay to the funds he had used; and he also OX pected to place portions of the stock with stockg owers hrouguout that section. If, when the notes given in this ansaction


Article from The Yellowstone Journal, May 12, 1894

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A Big Deal. C. R. Middleton is in receipt of a telegram from his legal partner J. E. Light, now in Chicago, conveying the information that the Miles City Water and Electric Light company and the receiver of the Stockgrowers National bank of this city had agreed upon a compounding of the indebtedness of the former to the latter, the receiver accepting $22,500 in full of the bank's claim against the company, which was understood to be $42,000 at the time the bank closed in July last. The news struck this community this morning like a clap of thunder out of a clear sky, and is now the subject of much unfavorable com ment. As the best information at hand is contined to the bare fact above recited this paper does not as yet feel authorized to express an opinion in regard to the matter, but will refer to it later on, when better informed.


Article from The Yellowstone Journal, August 28, 1894

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Hood's Pills cure habitual constipation. # Notice of Receivership. TO WHOM IT MAY CONCERN, Public notice is hereby given, that the undersigned was on the 17th day of August, 1894, by an order of the district court in and for Custer county in the suit of Leo C. Harmon, as receiver of the Stock Growers National bank, of Miles City, Montana, laintiff vs. The Water & Electric Light company, a Corporation Defendant, duly appointed receiver of all the property of the said Water & Electric Light company mentioned in two mortgages annexed to the complaint of plaintiff in said action, for the purpose of taking possession of said property and continuing the business of defendant during the pendency of the said foreclosure suit and collecting the revenue and paying the running expenses of said defendant; and the undersigned has entered upon the discharge of his duties as such receiver, and the business and operation of the said defendants Water & Electric Light plant is under the management and control of the undersigned as such receiver, to whom all payments for water and light furnished by the said Water & Electric Light company must be made, and with whom all business concerning the same is to be transacted. The office of the undersigned is located in the rear of the Stock Growers National bank building, Miles City, Montana. J. B. COLLINS, Receiver of the Water & Electric Light Co. Dated August 21st, 1894. First publication, August 23, 1894.


Article from The Yellowstone Journal, August 30, 1894

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Notice of Receivership. TO WHOM IT MAY CONCERN, Public notice is hereby given, that the und-rsigned was on the 17th day of August, 1894. by an order of the district court in and for Custer county in the suit of Leo C. Harmon, as receiver of the Stock Growers National bank. of Miles City, Montana, laintiff vs. The Water & Electric Light company, a Corporation Defendant, duly appointed receiver of all the property of the said Water & Electric Light company mentioned in two mortgages annexed to the complaint of plaintiff in said action. for the purpose of taking possession of said property and continuing the business of defendant during the pendency of the said foreclosure suit and collecting the revenue and paying the running expenses of said defendant: and the undersigned has entered upon the discharge of his duties as such receiver, and the business and operation of the said defendants Water & Electric Light plant is under the management and control of the undersigned as such receiver. to whom all payments for water and light furnished by the said Water & Electric Light company must be made, and with whom all business concerning the same is to be transacted. The office of the undersigned is located in the rear of the Stock Growers National bank building, Miles City, Montana. J.B. COLLINS, Receiver of the Water & Electric Light Co. Dated August 21st. 1894. First publication, August 23, 1894.


Article from Bismarck Weekly Tribune, June 21, 1895

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with cold lead, one of the men being shot in the back of the head, the bullet coming out through the chin. The injured man at last accounts was still alive, but sinking gradually, and the murderer chained in the guard house. A telegram from Grand Master Workman Moore, now attending the supreme session of the A. O. U. W. in Chicago, states that favorable action has been taken and that Supreme Master Workman Joseph E. Riggs of Kansas will be in Fargo, Tuesday, July 16th, to organize the grand lodge of North Dakota. This will bring fifty two representatives from subordinate lodges in the state there together with many visiting brethren, and will separate North from South Dakota. The delegates to the various Masonic grand lodge bodies went to Fargo this morning, where the annual sessions will be held, commencing at noon on the 18th. Thursday the grand chapter of the Order of the Eastern Star will meet. Mrs. H. E. White is grand matron and Mrs. N. R. Briggs grand secretary. In the evening the initiation services will be exemplified by the degree team from Mecca Chapter, Fargo, and the floor work by the chapter from Jamestown. That evening a banquet will also be given the visitors and grand officers by Fargo. A very pleasant time is anticipated. Perkins, Briggs, Hare and others will attend from Bismarck. Leo Harmon of Miles City, Mont., a son of Capt. William Harmon, formerly post trader at Fort Lincoln, who is well known among the old timers on the river, was in the city yesterday, having come up from Cannon Ball, where he attended the funeral of his uncle, H. S. Parkin. Leo has been in Miles City for some years past, and was engaged with the Stockgrowers' Bank, and after its failure was appointed receiver of that institution. The position is a responsible one, and is efficiently and satisfactorily filled by the present incumbent. Captain Harmon has a well stocked ranch near Miles City, and is doing well financially, although his health is poor, he having suffered from an attack of locomotor ataxia some time ago. Leo returned west this morning.


Article from The Herald, September 14, 1895

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TOO FREE WITH THE PEN, And Now Finds Himself in Serious Trouble FOR ARRESTED FORGERY Prominent Throughout the West in Business Circles w. R. Stebbins of Kansas City Charged With Having Used Another Man's Signature SALT LAKE Sept. 13.-A special to the Tribune from Cheyenne, Wyo., says: W. R. Stebbins, who has been well known in banking and business circles throughout the west for the past twenty years, was arrested here this morning by Sheriff Armstrong of Crook county on the charge of forgery. The sheriff started north at once with his prisoner, who will have a hearing at Sun Dance early next week. Mr. Stebbins' home is in Kansas City, Kan., where he is connected with the American Loan and Trust comDany. He has large property interests here, owning the Cheyenne postoffic e building. He has been connected as a stockholder or officer in the Merchants' National bank of Deadwood, S. D.: the Stebbins, Post & Co. bank of Cheyenne; the First National bank of Sun Dance; the Stock Growers National of Miles City; Cheyenne National and California National of San Diego, all of which have failed but without loss, it is alleged, to Stebbins. It 18 charged that Mr. Stebbins owne ed a block of stock in the First National of Sun Dance from its organization. To conceal his ownership of the bank stock Mr. Stebbins transferred it to a Kansas City man named Mills. The bank was then prospering and paying dividends on the stock. It is alleged that in order to secure the dividends on the stock transferred to Mills, Stebbins made out a power of attorney to the addition of Sun Dance, signed Mills' name to it and sent the document to A. D. Dunn. It authorzed him to vote the stock and collect the dividends. It is also alleged that Mills was in ignorance of this transaction. Later the bank failed and went into the hands of Receiver Milo A. Adams, who levied an assessment on all stockholders for the benefit of the banks' creditors. Both Mills and Stebbins denied owning the stock referred to and an investigation which followed resulted in the discovery of the forgery. Besides his connection with western banks, Mr. Stebbins is connected with the banking firm of Christic & Janney of New York. Suits against him by representatives of the broken banks have been commenced in New York city. Wyoming and Kansas City. Mr. Stebbins and his family have traveled abroad considerably, and he is regarded as personally being very wealthy.


Article from The Seattle Post-Intelligencer, September 15, 1895

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All His Banks Failed, but, It Is Said, Without Loss to Him. Salt Lake, Sept. 13.-A special to the Tribune from Cheyenne says: W. R. Stebbins, who has been well known in banking and business circles throughout the West for the past twenty years, was arrested here this morning by Sheriff Armstrong, of Crookston, on a charge of forgery. The sheriff started north at once with his prisoner, who will have a hearing at Sun Dance early next week. Mr. Stebhins' home is in Kansas City, Kan., where he is connected with the American Loan and Trust Company. He has large property interests here, owning the Cheyenne postoffice building. He has been connected as a stockholder or officer with the Merchants' National Bank of Deadwood, S. D.; the Stebbins, Post & Co. Bank of Cheyenne; the First National Bank of Sun Dance: the First National Bank of Spearfish: the Stock Growers' National Bank of Miles City: the Cheyenne National Bank and the California National Bank of San Diego, all of which have failed, but without loss, It is alleged, to Stebbins. It is charged that Mr. Stebbins owned a block of stock in the First National Bank of Sun Dance from its organization. To conceal his ownership of the bank stock Mr. Stebbins transferred it to a Kansas City man named Mills. The bank was then prospering and paying dividends on the stock. It is alleged that in order to secure the dividends on the stock transferred to Mills, Stebbins made out a power of attorney. signed Mills' name to It and sent the document to A. D. Dun. It authorized him to vote the stock, receipt for and collect the dividends. It is also alleged that Mills was in ignorance of this transaction. Later the bank failed and went into the hands of a receiver, Milo A. Adams, who levied an assessment on all the stockholders for the benefit of the bank's creditors. Both Mills and Stebbins denied owning the stock referred to, and an investigation followed. resulting in discovery of the forgery. During his connection with Western banks he has also been connected with the banking firm of Christie & Janney, of New York. Suits against him by representatives of the broken banks have been commenced in New York city, Wyoming and Kansas City. Mr. Stebbins and his family have traveled abroad considerably, and he is regarded as being very wealthy.