11548. First National Bank (Sidney, MT)

View Charter #9004 on SPMC

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 9004
Charter Number: 9004
Start Date: August 14, 1925
Location: Sidney, Montana (47.717, -104.156)

Metadata

Model: gpt-5-mini
Short Digest: aff8a999

Response Measures

None

Receivership Details

Depositor recovery rate: 42.9%
Date receivership started: 1924-02-26
Date receivership terminated: 1932-06-15
OCC cause of failure: Economic conditions
Share of assets assessed as good: 59.3%
Share of assets assessed as doubtful: 4.1%
Share of assets assessed as worthless: 36.6%

Description

Articles (1925–1929) consistently refer to the First National Bank of Sidney as a defunct institution under a federal receiver, with litigation by the receiver against former directors for improper/excess loans. No newspaper text describes any depositor run; the bank had permanently closed and been placed in receivership. Cause of suspension/closure appears to be bank-specific mismanagement and excessive/illegal loans. Dates of closure are not precisely stated in the clippings; earliest explicit discussion of receiver legal action is Aug 14, 1925. OCR typos corrected (e.g., Rank -> Bank, spacing).

Events (7)

1. January 25, 1908 Chartered

Source: historical_nic

2. February 26, 1924 Receivership

Source: historical_nic

3. August 14, 1925 Receivership

Newspaper Excerpt: W. E. Birmingham, receiver of the First National Bank of Sidney, Friday filed an equity suit in the federal court against directors and officers of the bank asking the court to determine their liability and enter judgment on loans totaling $39,000.
Source: newspapers

4. August 14, 1925 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank closed and placed in federal receivership after alleged gross mismanagement and loans in excess of legal limits (several large loans to insiders/related parties).
Newspaper Excerpt: receiver of the First National Bank of Sidney, against the directors of that defunct institution
Source: newspapers

5. March 10, 1927 Other

Newspaper Excerpt: Judge Charles N. Pray in the federal district court handed down a decree ... in the case of C. R. Clark, receiver of the First National bank of Sidney, against ... directors of the defunct bank. The court found for the plaintiff on the Turner and Wilson loan of $25,000 ... directors held liable in an individual and personal capacity.
Source: newspapers

6. May 31, 1928 Other

Newspaper Excerpt: R. Clarke resigns as Richland bank receiver ... His receiver for the First National bank of Sidney has not yet been named.
Source: newspapers

7. February 14, 1929 Other

Newspaper Excerpt: H. A. Streeter, national bank receiver who has charge of the affairs of the old First National Bank of Sidney, came down from Glasgow Tuesday ...
Source: newspapers

Newspaper Articles (10)

1. August 14, 1925 The Producers News Plentywood, MT

Article from The Producers News, August 14, 1925

Click image to open full size in new tab

Article Text

SUIT CAUSES SCARE IN RANKS OF BANKERS Fear Widespread Demand for Dismissal of Receivers Who Were Cashiers in Closed Banks, and Appointment of New Ones Will Uncover Much Criminal Irregularities. Consternation was thrown in the ranks of bankers thruout the state this week by the institution of an action, by the receiver of the First National Bank of Sidney, against the directors of that defunct institution for $39,000. The matter is thrown into the Federal Court and it is feared by bankers that if the suit is successful it will be followed by many more of a like nature and possibly by criminal proceedings.

2. August 14, 1925 The Producers News Plentywood, MT

Click image to open full size in new tab

Article Text

COVERED UP THEIR CRIMINALITY This suit has caused much agitation amongst the money changers because a widespread demand has sprung up throughout the state for the dismissal of Receivers who were in any way connected with banks before they closed and the substitution of men who would hold the scales of justice evenly between the depositors who lost money and those who got it. It is contended by those who ask for a change of Receivers that many of the present receivers were formerly cashiers of the banks they closed and that their position gives them a chance ta cover up and destroy evidences of their criminality. It is further contended that with the appointment of new men many of the bank wreckers now at large would be brought to justice and in that way a check would be put on further operation of this class of criminals within e the state. it SIDNEY BANK SUIT n The facts in the Sidney bank suit are briefly as follows: e W. E. Birmingham, receiver of the d First National Bank of Sidney, Friday filed an equity suit in the federal " court against dierctors and officers of rd the bank asking the court to deter mine their liability and enter judge g ment on loans totaling $39,000, which the receiver alleges were made con nt (Continued on Page Four) e,

3. August 14, 1925 The Producers News Plentywood, MT

Click image to open full size in new tab

Article Text

# SIDNEY BANKERS RUN # AFOUL OF J. S. LAW (Continued from page one) trary to the provisions of section 5200 of the revised statutes of the United States. SEN. ADAMS AMONG DEFENDANTS In allowing these loans, the complaint charges, the defendant permitted a violation of the rule which prohibits any one person or concern from borrowing more than 10 per cent of a national bank's capital and surplus. The defendants are W. K. Adams, S. F. Donaldson, Ira M. Alling, L. H. Turner, C. E. Varco, Axel Nelson, J. S. Day, J. S. Beagle and Lambert Keffeler, Day being president, Alling, Adams and Donaldson, vice presidents, and Turner cashier. The directors cited were elected "GROSSLY MISMANAGED" The directors cited were elected January 11, 1920, and with the exception of Keffeler, who retired January 9, 1924, served until the bank closed. It is alleged in the complaint that Nelson and Keffeler from 1922 to 1924 neglected their sworn duties in failing to attend many of the directors meetings during the time when, it is charged, the affairs of the bank were "grossly mismanaged," and, according to the complaint, the bank's business was carelessly conducted. It is alleged that the loans cited were made by the bank's agents and officers and approved by the directors. Loans listed are: To Andrew J. Mercer, $13,163.43. To H. G. Bentley, $11,000. To M. A. Wilson and L. H. Turner, conducting a stock farm business under the name of Wilson & Turner, $23,475 in three separate items. The complaint says there is due from Mercer $10,000, from Bentley $14,000, said to be the amount of the loan and interest, and from Wilson & Turner $15,000. UNPAID OBLIGATIONS $100,000 The First National bank of Sidney was capitalized at $50,000 and afterward created a surplus of $50,000. Birmingham cites that prior to his taking office as receiver, the comptroller of currency had levied against the stockholders, $20,000 being paid, but that it was impossible to realize another $20,000 because of the financial condition of some of the stockholders. The receiver says there will be $100,000 unpaid obligations when the bank's assets have been realized on.

4. April 23, 1926 The Producers News Plentywood, MT

Article from The Producers News, April 23, 1926

Click image to open full size in new tab

Article Text

SIDNEY BANK CASE IN U. S. COURT * Great Falls, April 22. - The * final case set for this term of * federal court will get under way * this morning when evidence in a * suit by C. R. Clark, receiver of the First National bank of Sidney, against the directors of the * defunct bank is begun. * The suit, which was instituted by a former receiver. is based on the allegation that the directors permitted three loans to individuals and partnerships in excess of 10 per cent of the capital stock of the bank, in violation of the law. The principal item is one of $24, 500 which was loaned to a partnership and to the individual members of the partnership. The directors contend that it was their understanding that the partners had incorporated and will offer testimony to the effect that the articles of incorporation had been drawn and signed but had not yet been placed on record when the final loan was made. They will also endeavor to show that there was no doubt as the advisability of the loans because the principal sum of $24,500 has been reduced to less than * t $7,000 in less than two years. h Another loan in excess of the legal amount is charged where a S brother of a man who was indebted to the legal limit obtained a a loan and assigned the money to S his brother. The third case is where a note was issued for interest on another note which was equal to the amount allowed by S law. The directors of the defunct bank, who are defended by the firm of Cooper, Stephenson & e Hoover, will contend that there 2 was no intent to violate the law, e that no evidence of mismanageiment can be found and that the violations charged are based on e technicalities. * * * of * * * *

5. March 10, 1927 The Great Falls Leader Great Falls, MT

Article from The Great Falls Leader, March 10, 1927

Click image to open full size in new tab

Article Text

BANK RECEIVER WINS JUDGMENT LOAN LOSSES Judge Charles N. Pray in the federal district court handed down a decree this afternoon in the case of C. R. Clark. receiver of the First National bank of Sidney against W. K. Adams, S. F. Donald-, son. Ira M. Alling L. H. Turner. C. E. Varce. Axel Nelson. J. S. Day, J. S. Beagle and Lambert Keffeler. The defendants are the directors of the bank and the receiver sought recovery for the losses sustained by the bank at Sidney through the making of excess loans to M. A. Wilson. L. H. Turner, H. G. Bentley and Andrew Mercer The court found for the plaintiff on the Turner and Wilson loan of $25,000 and holds the amount to be recovered by judgment to be $6.244.26 with interest bringing it up to approximately $11,000. The directors with the exception of Keffeler are held liable in an individual and personal capacity.

6. August 12, 1927 The Sidney Herald Sidney, MT

Article from The Sidney Herald, August 12, 1927

Click image to open full size in new tab

Article Text

LEGAL NOTICES SUMMONS IN THE DISTRICT COURT OF THE SEVENTH JUDICIA DISTRICT OF THE STATE OF MONTANA IN AND FOR THE COUNTY OF RICHLAND John W. Unfred. Plaintiff, James Lewis Peer. vs. Benjamin Crampton Peer, Earl Gary Peer, David William Peer, Lyda Belle Stansell. (Nee Lyda Belle Peer,) William Frank and Mildred Frank, his wife, Morrill and Dr. R A. Morrill as guardian David William Peer James Lewis Peer Crampton Peer, Earl Peer, Lyda Belle Peer, Meadors and John P Meadors her husband, First National Bank of Sidney, Montana, and China R. Clarke. Receiver of The First National Bank of Sidney Montana, and all other persons. unknown, claiming or who might claim any right. title estate, or interest in. or lien or encumbrance upon, the real property described in the complaint or any thereof. adverse to plaintiff's ownership or any cloud upon plaintiff's title thereto. whether such claim or possible claim be present or contingent. including any claim or possible claim of dower, inchoate or accrued The State of Montana to Defendants James Lewis Peer, Benjamin Crampton Peer Earl Gary Peer, David William Peer. Lyda Belle Stansell (Nee Lyda Belle Peer,) William Frank and Mildred Frank his wife. R. A. Morrill and Dr. A. Mor rill, as guardian of David William Peer, James Lewis Peer Crampton Peer Earl Peer, Lyda Belle Peer, Katheryne Meadors and John P. Meadors. her band, First National Bank of Sidney Montana, and China R. Clarke Receiver the First National Bank of Sidney Montana, and all other persons, unknown. claiming or who might claim lien or encumbrance upon the real pro perty described in the complaint or any thereof adverse to plaintiff's ownership. any cloud upon plaintiff's tit.e thereto whether such claim or possible claim be present or contingent including any choate claim or possible claim of dower, GREETING"You are herby summoned to answer the complaint in this action which Is filed in the offce of the Clerk of this Court copy of which is herewith served upon you, and to file your answer and serve copy upon the plain tiff's attorney within twenty days after the service of this summons. exclusvie of the day of service: and in case of your failure appear or answer judg. ment will be taken against you by deplaint.' fault for the relief demanded in the com"This action Involves the title to the following described to-wit Beginning the Northwest of South Quarter (SW%) the Southeast Quarter (SE%) of Sec tion eig Township Twenty (22) P. North M. Range Richland (59 East situate Montana boundary thence due East to the Wester County line of the Right of the Missouri River Railway Compan W thence in direction along the Westerly boundary line right of way of the Missouri River Ra way any the Intersection Westerly houndary line the Right Way of Missouri River Company with the Westerly boundar Railw line of Southeast Quarter (SE%) Section (8) in Townsh twenty two (22) orth Range Fifty-nine (59) the East M M., thence due North point of strip of land. beginning rectangular in shape South wide, lying and being in the the Southeast Quarter EVSEM) Quarter Section Eght (8) Township twenty (22). North Range (59). East M. M. more described as follows: Commencing at the Southeast corner of the Northeast quarter of South Past Quarter (NE%SE%) of Section Eight Township Twenty-two (22), North Range (59). East, M. M thence due West Eighty (80) rods thence due North three hundred sixty-three (763) feet. thence due East Eighty rods. South three hundred ning: three (363) feet to point of begin-

7. August 12, 1927 The Sidney Herald Sidney, MT

Click image to open full size in new tab

Article Text

SHERIFF'S SALE IN THE DISTRICT COURT OF THE SEVENTH JUDICI DISTRICT OF THE STATE OF MONTANA. IN AND FOR THE COUNTY OF RICHLAND Cora M. Porterfield. Plaintiff, versus Julia Booth, J. H. Clark. administrator of the estate of Samuel Booth, Deceased, Ole H. Rogue. Security State Bank of Fairview. Montana, a cor oration. First National Bank of Fairview, Montana, China R. Clarke, Re ceiver of the First National Bank of Sidney, Montana. a corporation. China R. Clarke. Receiver of the First National Bank of Sidney, Montana, and Mary Booth Defendants. To be sold at Sheriff's Sale at the front door of the county courthouse in the city of Sidney, Richland County, State of Montana, on the 27th day of August. A. D. 1927. at the hour of two o'clock P. M., of said day, the following described property to-wit: The North Half of the Southeast Quarter (N/SE%) And the Northeast Quarter of the Southwest Quarter (NE%SW%) of Section TwentySix (26) in Township Twenty-five (25) North of Range Fifty-Eight (58) E. M. M. Richland County, Montana Dated at Sidney, Montana, this 29th day of July, A. D. 1927. Geo. T. O'Brien. Sheriff C. E. Collett. Attorney for Plaintiff. Sidney, Montana.

8. February 10, 1928 The Producers News Plentywood, MT

Article from The Producers News, February 10, 1928

Click image to open full size in new tab

Article Text

HOW BANK RECEIVERS ACT IN RICHLAND COUNTY Lambert Editor Flays Recoivers and Judges Go Out He Take Drink Together Says After Winding Up Affairs of Closed Institutions. (From Richland County Leader) the First NationBank building been looted truck loads fixtures have been hauled Sidney to be used in the new This about all that can be removed unless the Receiver gets short on salary funds and tears up the floor and sells takes down the walls sells the brick, which quite likely happen given. The time First State Bank went in this same manner has been but name, now the First National under the control of the Federal is going down the same lane. Oh, yes, the stockholders in their hundred per cent assessment, the law says they must, and the banks each small dividend But where has the balance The law does not say that Receiver rape closed bank prolonging its final settlement, oh He can keep on drawing big salary just long as there anything left to draw one with and when the assets are he rubs his soft fat hands together and tell the Judge that he has done he can and that there nothing more to settle. The Honorable Judge pats him on the back and says, "well done good faithful lets drink. We know of bank Billings that closed more fifteen years ago and Receiver has kept going from that time until now without winding the business. This was one the largest banks in that city and has proven fine thing for this man owns nearly all of the bank and by the Banking Department one of their crack This fellow fat and sleek and puffs when he walks. And when the dies he will be stuck deep in Hell he won't even be able see light the fires. Any that community suffers bank failure would save themselves lot of worry and receive satisfaction they would blow the establishment into million pieces not submit placidly to ing some with on his index finger in and get with the horns, hide tallow. you think we are spreading little too thick, just ask the of closed banks, the depositors or ask the people of the community. They can tell it to

9. May 31, 1928 Miles City Star Miles City, MT

Article from Miles City Star, May 31, 1928

Click image to open full size in new tab

Article Text

GLENDIVE MEN TO LEAVE FOR BILLINGS FRIDAY Glendive. May to The Schaeffer H. Watson. H. N. M. Hughes are leaving Friday by auto for to attend the meeting group two of the Montana Bankers' association which will be held in Billings. on Saturday. June Mr. Dion. cashier Exchange State bank of Glendive. while Schaeffer. who of the association. also president the Glendive State bank. SIDNEY BOY SCOUTS IN ANNUAL Sidney, May to the troops consisting local boys of the local Boy Scout movement went their annual encampment here Wednesday. The camp located miles this city on section of land known Natural Corral result the activities certain civic bodies cabin has been constructed and will headquarters for this years encampment. Regular army maneuvers and detail will be the order of the week's encampment. Under the leadership of Mr. Dan Kind. scoutmaster the boys will be their own the entire time. Sunday. June has been designated visitor's day. R. CLARKE RESIGNS AS RICHLAND BANK RECEIVER Sidney. May the R. Clarke. years resident of Richland county and connected with Montana banking circles for the past 20 receiver national years, banks in this immediate locality. has sent his resignation to the Comptroller of Currency in Washeffective June after which he will connected in an official capacity with the Nationbank located in New York City City. Clarke was the For years Mr of the Federal Rerepresentative serve and War Finance systems this locality The past years he served received located has this The affairs of city. recently been the banks have closed. His receiver for the First National bank of Sidney has not yet been named.

10. February 14, 1929 The Sidney Herald Sidney, MT

Article from The Sidney Herald, February 14, 1929

Click image to open full size in new tab

Article Text

Mrs. John Lakey of Skaar, N. D., was in Sidney Tuesday. Mrs. Lakey was just returning from trip to Los Angeles where she visited with her J. H. Piche and Mrs. Bert Piche of Crane were shopping in Sidney Wednesday G. H Reiman of Lane accompanied a shipment of horses to Albion, Ind., Wednesday The February meeting of the Home and Social Economics department of of the Woman's club will be held Monday evening at the home of Mrs. C. E Collett. The subject to be discussed is Etiquette. Bring questions. Mrs. L. E. Rice entertained a few of the younger set at her home Monday evening. Mrs. Chet Nutter entertained eight of the Sidney young ladies at a 6:30 dinner Monday evening. Cards were played during the evening with Miss Steinman winning high prize. Ben Huston was in Fairview Tuesday installing two new phones. Ben tells us that during the past year there have been over fifty telephones installed in Sidney. Nick Hansen and his force of employees were busy moving into the new quarters they now occupy for several days, the City Meat Market having consolidated with the Valley Meat Market Mr. Hansen was proprietor of the City Meat Market and the consolidation effects a partnership with Andrew Miller of the Valley market. Both are expert the meat business and the building the consolidated markets are now housed in makes for the partnership a splendidly appointed place in which to carry on their business. The consolidation cuts out one overhead expense in operating and makes for greater efficiency in service in the one establishment which retains the name Valley Meat Market Mrs. Nick Hansen entertained the members of the D. D. Club and sever al friends at a 6:30 steak dinner on Wednesday evening. The affair was in honor of Mrs. F. A. Amsden. Three tables of bridge were in play during the evening with Mrs. Jack Johnson winning high score. Mrs. Amsden was the recipient of a guest prize. H. A. Streeter, national bank receiver who has charge of the affairs of the old First National Bank of Sidney, came down from Glasgow Tuesday in that connection. He says there is a considerable layer of snow all along the highline west and the roads, except the charted highways, are mostly impassable. The situation, however, is looked upon with favored by the people of the territory as the moisture deposit in the ground as a result of the snow melting away in the spring will make for a good start for spring seeded crops. The various local troops of Boy Scouts have placed very interesting exhibitions of their work in the windows of the different stores. This being Boy Scout Week all over the nation, we are glad to see our boys doing their share to make the movement a success.