11544. First State Bank (Shelby, MT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
July 10, 1923
Location
Shelby, Montana (48.505, -111.857)

Metadata

Model
gpt-5-mini
Short Digest
beeec334

Response Measures

None

Description

The First State Bank of Shelby closed its doors after the suspension/voluntary liquidation of the Stanton Trust & Savings Bank (Great Falls). Articles report the state bank examiner took charge; closure is described as immediate result of Stanton's suspension. No explicit description of a depositor crowd/run causing suspension is given — withdrawals occurred but the principal trigger was affiliation with the Stanton bank. Date of closing reported July 10–11, 1923.

Events (2)

1. July 10, 1923 Other
Newspaper Excerpt
The state superintendent of banks today took over the Stanton Bank and Trust company, as well as the First State bank of Shelby, the Johnson bank.
Source
newspapers
2. July 10, 1923 Suspension
Cause
Local Banks
Cause Details
Closed as an immediate result of the suspension/voluntary liquidation of the Stanton Trust and Savings Bank (Great Falls), with which it was affiliated; depositors had made withdrawals after news of Stanton's suspension and criticism of bank officers' fight financing roles was noted.
Newspaper Excerpt
The First State Bank of Shelby ... closed its doors this morning, according to a statement made here by State Bank Examiner L. Q. Skelton
Source
newspapers

Newspaper Articles (8)

Article from The Omaha Morning Bee, July 11, 1923

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Article Text

Shelby Bank Closes in Wake of July 4 Bout Follows Great Falls Institution in Shutting DoorsBoth Run by Backers of Big Fight. By Associated Press. Great Falls, Mont., July 10.-The First State Bank of Shelby, of which Jim Johnson, one of the backers of the Dempsey-Gibbons bout, is president, closed its doors this morning, according to a statement made here by State Bank Examiner L. Q. Skelton, who is here to take charge of the Stanton Trust and Savings bank, which went into voluntary liquidation Monday noon. George H. Stanton, president of the Great Falls institution, also was one of the backers of the July 4 championship battle at Shelby. Mr. Skelton stated that the reason for the closing of the Shelby bank was that it was affiliated with the Stanton bank, which closed yesterday. The Shelby bank is a state institution with $200,000 assets, having a capital of $25,000 and deposits of about $193,000. according to its last t statement. Mayor James A. Johnson of Shelby, the man who is reputed to have lost more than $100,000 through the Dempsey-Gibbons fight and who put up $65,000 of the second $100,000 payment for the Dempsey purse, besides being president of the bank. is 1 one of its principal stockholders. No statement has been issued by Mayor Johnson, who is in Shelby, nor by Bank Examiner Skelton. When the second payment of $100,000 was made to Dehipsey in Great I Falls on June 15, Mr. Stanton was I credited in the dispatches as having . put up $50,000 and Mayor Johnson < $15,000. the rest being made up by f Great Falls 'men. S This statement was afterward corrected to show that Mayor Johnson b was the "angel" in the crisis, having really put the $50,000 credited to t Stanton in addition to another $15,000. At the Stanton bank today, no statement was issued further than b the one made by Mr. Stanton last t night to the effect that the DempseyGibbons fight had nothing whatever t to do with the failure of his bank, r that he had not put a dollar of the bank's money or his individual fore tune into the fight in any way and p had only contributed his individual efforts to aid in raising the money called for by the purse. S The state superintendent of banks 1 today took over the Stanton Bank and o Trust company, as well as the First t State bank of Shelby, the Johnson bank. r


Article from Casper Daily Tribune, July 11, 1923

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Article Text

ANOTHER AFFILIATED BANK IS CLOSED HELENA, July 11-L. Q. Skelton, State bank examiner returned today from Great Falls where he took charge of the Stanton Trust and Savings Bank and from Shelby, where the affairs of the first state bank at Shelby were placed in his hands, both banks having closed. On his return he stated that the First State Bank of Joplin, affiliated with the Stanton bank, had closed is doors, presumably as a. result of the failure of the Great Falls bank. The Joplin bank has deposits of about $40,000 and is cap. italized at $20,000. Examiner Skelton said he is forbidden by law to make any statements with reference to the condition of a bank placed in his hands. He said he would make a report to Governor Joseph M. Dixon probably within n. week and in that report probably would say whether in his opinion re. ceivers are necessary for the three banks or whether re-organizations and re-conditioning will be possible. The failure of the Shelby and Jop. lin banks are generally credited with


Article from New Britain Herald, July 11, 1923

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Article Text

AWAIT BANK REPORT Shelby \ Depositors Anxious About Their Funds-Not Used to Finance Fight, Is Statement. Shelby, Mont., July 11.-Depositors today awaited the report of bank examiners working on the books of the First State bank of Shelby, which closed its doors yesterday. No statement is available as to the exact amount of cash involved. The action was an immediate result of the suspension of the Stanton Trust and Savings bank of Great Falls. L. A. Murrils, cashier of the Shelby bank. said a number of depositors withdrew their cash from the bank following criticism of Mayor James A. Johnson's connection with the raising of the second $100,000 paid to Dempsey. Mayor Johnson, who was president of the bank suffered personal losses estimated to have ranged between $100,000 and $150,000 in attempting to "save the fight and the good name of Montana." None of the bank's funds was used in connection with the financing of the fight, it was announced. George H. Stanton, who aided in financing the fight, has declared depositors in his bank will be paid in full and that the prize fight financing had nothing to do with the failure of either institution.


Article from The Telegraph-Courier, July 12, 1923

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Article Text

SHELBY MARKS TIME IN NEW BANK CRISIS Bank Examiners to Make Report on Condition of First State Bank of Shelby Tomorrow. (By Associated Press Leased Wire) Shelby, Mont.-Reports of banking examiners working on the books of the First State bank of Shelby, which closed its door yesterday, were expected to be available by tomorrow. Meanwhile depositors in the institution of which Mayor James Johnson, of Shelby, treasurer for the promoters of the Dempsey-Gibbons fight, was president, marked time. No statement was forthcoming as to the exact amount of cash on hand. The action was an immediate result of the suspension of the Stanton Trust and Savings bank of Great Falls. Geo. H. Stanton, who aided in the financing of the fight, was president of the Great Falls institution.


Article from Evening Star, July 12, 1923

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Article Text

The closing of the First State Bank of Shelby, another institution affiliated with the Stanton Bank, already had been announced. Mr. Skelton returned today from Great Falls, where he took charge of the Stanton Bank, and from Shelby, where the affairs of the Shelby institution were places in his hands. He stated that the Joplin bank had closed presumably as a result of the failure of the Great Falls bank. The Joplin bank has deposits of about $40,000 and is capitalized at $20,000. Examiner Skelton said he is forbidden by law to make any statements with reference to the condition of a bank placed in his hands. He said he would make a report to Gov. Joseph M. Dixon, probably within a week, and in that report probably would say whether in his opinion receivers are necessary for the three banks or whether reorganization and


Article from The Ely Miner, July 13, 1923

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Article Text

SHELBY BANK CLOSES DOORS Suspension Follows That of Great Falls Bank-Fight Denied Cause. Great Falls, Mont.-The First State Bank of Shelby, of which Mayor James Johnson, one of the backers of the Dempsey-Gibbons bout, is president, has closed, according to a statement made here by State Bank Examiner L. G| Skelton, who is here to take charge of the Stanton Trust and Savings bank, which went into voluntary liquidation.


Article from The Challis Messenger, August 8, 1923

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Article Text

Fight Backers's Bank Closes Shelby, Mont.-Reports of banking examiners working on the books of the First State bank of Shelby, which closed its doors Tuesday, were expected to be available Wednesday. Meanwhile depositors in the institution, of which Mayor James A. Johnson of Shelby, treasurer for the promoters of the Dempsey-Gibbons fight, was president, marked time. No statement was forthcoming as to the exact amount of cash on hand. Closing of the bank was an immediate result of the suspension of the Stanton Trust and Savings bank of Great Falls. George H. Stanton, who aided in the financing of the fight, was president of the Great Falls institution.


Article from The Tomahawk, August 30, 1923

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Sports Minneapolis - Minneapolis, after being fightless since April, is coming back into the fistic limelight either Sept. 21 or 28. William B. Hoke, matchmaker for the local club, announced that he had come to terms with Cowboy Padgett for a match with Billy Wells, British welterweight champion. Great Falls, Mont.-The First National bank of Shelby closed on order of the board of directors. Its last statement showed deposits of $377,000. In the month since then it is stated that about $100,000 had been withdrawn and the assets of the bank could not be realized on to furnish further cash. This leaves Shelby without a bank, the First State bank, of which Mayor I. A. Johnson was president, having closed shortly after the Dempsey-Gibbons fight July 4. Mayor Johnson was treasurer of the fight and active in raising a portion of the $300,000 which Dempsey was to have received. Foreign Deauville-The wearing of wigs has become the latest feminine fad here because of the scarcity of coiffeurs and hair dressers. The leading Paris wig makers state that they are sold out. Berlin-A dispatch to the Deutsche Allgeteine Zeitung, from Halle, says a mob stormed the jail at Zeitz, smashed the doors, opened the cells and liberated all the prisoners, most of whom are declared by the dispatch to have been ordinary criminals. Canton-The headquarters staff of the constitutionalist forces declared that the report of the retreat of those forces recently was without foundation, and that Sun Yat Sen has ordered four new airplanes to proceed to the front for duty. Brussells-Premier Theunis has served notice on all bankers and brokers that if speculation in exchange continued, strenuous restrictive measures would be taken, beginning with limitations on exchange transactions and eventually leading. if necessary, to the closing of the bourse. Landau, Bavarla-Eight directors of a Badanese aniline soda factory at Ludwigshafen were sentenced to eight years' imprisonment and fined 150, 000,000 marks each by a French court martial. They were charged with re fusing to assist in delivering nitrogen fertilizers requisitioned by the French Geneva-Miss Helen Short, aged 17 of New York, was injured by a small avalanche while ascending the Jung frau, accompanied by a guide. She was within 20 yards of the summit when she was struck by falling stones. She was assisted by the guide to the Jungfrau station, whence she was taken to a private clinic at Wengern. Her recovery is expected. Bremen-"He looked very dry when he told me he did not wish to be in terviewed," was the impression made on a German newspaper reporter by former Representative Andrew J. Volstead when he arrived at Bremen on the steamer America. Mr. Volstead is on his way to Copenhagen to attend the international congress against alcohol. Nome, Alaska-The Blue Sea, a small American coast trading vessel, captured and held by Russion soviet authorities in Serbia but later released, arrived from Anadyr. American traders had failed to respect the Russian trading regulations but were freed with their confiscated ship upon compliance with soviet shipping restrictions, the party explained. Dublin-Eamonn de Valera arrested under dramatic circumstances at En nis, when he appeared to deliver a speech in the election campaign, prob ably will be brought from Limerick where he is imprisoned at present, to Mount Joy jail within the next few days. The public safety act gives the government power to detain him and it is considered likely that he will be kept in jail until the condition of the country is more peaceful. Paris-The Dauville casino's baccarat bank has been broken by the loss of 10,000,000 francs, says the Herald. The syndicate running the bank, comprising two wealthy Greeks and an Armenian, have decided to go out of business and no one has been found who is willing to take over the game. The two principal winners Monday evening were the eminent French sportsman, James Hennessy, and a Britisher named Pulcinelli. The latter is said to have cleared a million and a half francs in a single sitting. Paris-Ten additional agents of the second section of French police-the secret political section-were dispatch. ed to Bagnoles de Lorne to increase the guard over Lord Curzon, who is there taking a cure. Every precaution has been taken to avoid a manifestation of popular feeling during Lord Curzon's visit. Buenos Aires-The Argentine gov. ernment will not be represented at the assembly of the League of Na tions next September, owing to delay in congressional approval of measures to "regularize Argentina's relations with the league," it was said