12056. First State Bank (Barton, ND)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 4, 1909
Location: Barton, North Dakota (48.507, -100.176)

Metadata

Model: gpt-5-mini
Short Digest: 62f80f11

Response Measures

None

Description

Articles report the First State Bank of Barton closed/failed after the disappearance/defalcation of Andy Jones; a receiver (Walter Dohney) was later appointed. No article describes a depositor run — this is a bank failure due to manager dishonesty (bank-specific adverse information). Dates inferred: bank closed in early January 1909; newspaper reports Jan 22, 1909 and follow-ups in August 1909 on Jones's capture and receivership confirmation.

Events (2)

1. January 4, 1909 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Closure followed disappearance and alleged defalcation/fraud by Andy Jones, president/cashier; questionable notes endorsed by Jones left bank impaired; federal indictments later returned against Jones and a receiver was appointed (Walter Dohney).
Newspaper Excerpt: As a result of the closing of the First National bank of Rugby and the First State bank of Barton, following the disappearance of Mayor Andy Jones
Source: newspapers

2. August 20, 1909 Receivership

Newspaper Excerpt: Very shortly after the failure of the Rugby bank, the First State bank of Barton, N. D., of which Jones was president, failed and Walter Dohney was appointed receiver. Federal indictments were returned against Jones by the last U. S. grand jury and bench warrants issued for his arrest.
Source: newspapers

Newspaper Articles (7)

1. January 22, 1909 The Bottineau Courant Bottineau, ND

Article from The Bottineau Courant, January 22, 1909

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TWO NEW BANKS AT RUGBY. Pierce County to Have at Least Three New Financial Institutions. Grand Foks Herald: As a result of the closing of the First National bank of Rugby and the First State bank of Barton, following the disappearance of Mayor Andy Jones, three new banks are to be started in Pierce county. Certificates of organization have already been filed with the Pierce county register of deeds for the First State bank of Rugby and the State bank of Barton, each with a capital of $10,000. The Ross-Davidson syndicate, owning a string of banks in North Dakota, is back of both. The promoters of the other bank, which will be located in Rugby, are O. T. Tofsrud, president; Ed Seele, vice president, and Nels Romness, cashier. Every train arriving from the east for several days has brought to Rugby Minnesota and Wisconsin bankers who purchased notes from Jones. The exact amount of the notes of doubtful value floated by Jones is not yet known, but estimates run as high as $250,000. Minnesota seems to have been Jones' favorite field of operation and the amount of paper held by capitalists of that state is greater than the combined holdings from all other states, it is asserted. It is confidently believed by those most heavily interested that if the bank is released from the obligation of the supposed worthless notesonly taken into consideration because endorsed by Jones as cashier of the First National bank, but not of record-there will be enough to pay all creditors and depositors in full. The resources of the bank seem to have been left unimpaired with the exception of these questionable obligations. Vice President F. T. Gronvold is one of those belonging to the optimistic class. In his financial dealings Jones did not let the matter of friendship count for anything. Some of his best friends are apt to suffer to the greatest extent. In endorsing the notes which have been declared not binding on the bank Jones used rubber stamps containing the banks endorsement. He stamped the notes on the back when he desired to sell them. The stamp contains no registry number and SO the proceedings have been held irregular by the receiver. No trace of Jones has been secured. His last dealings are believed to have been in St. Paul. H. J. Mushburger, who recently had a public sale, has rented his farm to E. Morgan and will move to Omemee, having purchased the A. A.

2. August 20, 1909 The Fargo Forum and Daily Republican Fargo, ND

Article from The Fargo Forum and Daily Republican, August 20, 1909

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Government Sleuths, After Search of Six Months, Run to Earth Absconding Cashier of First National Bank of Rugby and Head of Barton State Bank. WILL BE BROUGHT TO N. DAKOTA Details of Capture of Dakota's Frenzied Financier Are Meagre, But Federal Officials Here Are Assured That the Defaulter Is in Arms of the Law. While Jones will be prosecuted for Andy Jones, North Dakota's frendeals in connection with the First Nazied financier, is under arrest. The tional bank at Rugby being the only Rugby banker who is credited with matter in which the federal officials promoting the most astounding deals in the history of the state, has been have jurisdiction, his bond floating in connection with the "sheep ranch" is grappled by the strong arm of the fedsaid to have cost eastern and middle eral authorities. state capitalists thousands of dollars. After being traced for six months The last heard of Jones was at Minby secret service men and detectives, neapolis the first week in January Andy Jones, ex-cashier of the First when he drew a check of $7,000 on the National bank of Rugby, N. D., president of the First State bank of BarFirst National bank of Rugby. At that time he dropped out of sight. The ton, N. D., and promoter of the "Jones doors of the bank closed and on Jan. 4, sheep industry," was yesterday placed George W. Swards of Grinnell, Ia., who under arrest and is now held in jail in was in North Dakota closing up the Texas, awaiting an order or removal affairs of the Minot National bank, was to North Dakota where he will be forcappointed receiver. One dividend of ed to answer for what is considered 25 per cent WS recently paid on deone of the most collosal frauds ever posits. disclosed. Very shortly after the failure of the Nothing but the mere statement that Rugby bank, the First State bank of Jones had been apprehended and was Barton, N. D., of which Jones was under arrest, were received here late president, failed and Walter Dohney yesterday afternoon. While federal was appointed receiver. officials have been scored for not laying Federal indictments were returned hands on this man, they have been against Jones by the last U. S. grand steadily at work, not to cease until jury and bench warrants issued for their efforts were crowned with suchis arrest. cess.

3. August 20, 1909 The Fargo Forum and Daily Republican Fargo, ND

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Article Text

While Jones will be prosecuted for deals in connection with the First National bank at Rugby being the only matter in which the federal officials have jurisdiction, his bond floating in connection with the "sheep ranch" is said to have cost eastern and middle state capitalists thousands of dollars. The last heard of Jones was at Minneapolis the first week in January when he drew a check of $7,000 on the At First National bank of Rugby. that time he dropped out of sight. The doors of the bank closed and on Jan. 4, George W. Swards of Grinnell, Ia., who was in North Dakota closing up the affairs of the Minot National bank, was appointed receiver. One dividend of 25 per cent WS recently paid on deposits. Very shortly after the failure of the Rugby bank, the First State bank of Barton, N. D., of which Jones was president, failed and Walter Dohney was appointed receiver. Federal indictments were returned against Jones by the last U. S. grand jury and bench warrants issued for his arrest.

4. August 26, 1909 The Ward County Independent Minot, ND

Article from The Ward County Independent, August 26, 1909

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JONES CAPTURED ANDY Defaulting Rugbv Banker Caught by U.S. Detectives Canadian Texas, an Out-of-the-way Town of 500 Inhabitants- Will be Brought to North Dakota for Tral Andy Jones, North Dakota's fren- a town of about 500 population, are zied financier, is under arrest. The cording to the last census, and it * Rugby banker who IS credited with located twenty miles west of the west promoting the most astounding deals boundary of Oklahoma. The Atche in the history of the state, has been son, Topeka & Santa Fe railroad runs grappled by the strong arm of the through the city and is the only railfederal authorities. road traversing the unty. After being traced for six months The announcement of Jones' cap little by secret service men and detectives, ture yesterday occasioned no Andy Jones, ex-cashier of the First interest throughout the state. Jones National bank of Rugby, N. D., presi- defaulcations, his flight from the dent of the First State bank of Bar- state leaving in his wake nearly 100 ton, N. D., and promocer of the creditors together with many depositors in both the Rugby and Bartor Jones sheep industry," was yesterday banks in which he was interested placed under arrest and is now held were of a most sensational character, in jail in Texas, awaiting an order for removal to North Dakota where he and coupled with prominence in the will be forced to answer for what is financial world of Pierce county ank considered one of the most collasal other counties of that section, his esfrauds ever disclosed. caped attracted more than passing at Nothing but the mere statement tention. that Jones had been apprehended and The warrant for Jones' ar was under arrest, were received here i which was issued on the finding late yesterday afternoon. While fedthe federal jury, has nly been eral officials have been scored for not since May, although the serzier laying hands on this man, they have financier has been missing Nince about been steadily at work. not to cease January 1. until their efforts were crowned with Fargo, N. D., Aug. 21. A centifiel success. copy of the warrant that has been While Jones will be prosecuted for out for Andy Jones. the fugitive bank deals in connection with the First er of Rugby and Barton. N. D. was National bank at Rugby being the ontoday forwarded by Assistant Discries ly matcer in which the federal offiAttorney W. H. Barnett of this cut cials have jurisdiction, his bond floatto the authorities of Canadian. Texas ing in connection with the "sheep where he is under arrest. Definite ranch" is said to have cost eastern information concerning his capture and middle state capitalists thouswas given out today by Attoreny Bar ands of dollars. nett, who received first advices from The last heard of Jones at Minthe department of justice, Washing neapolis the first week in January ton, D. C., to the effect that the dewhen he drew a check of $7,000 on the faulting man had been found. First National bank of Rugby. At The information of Jones' that time he dropped out of sight. was received in Fargo by Mr. Barnet The doors of the bank closed and on Thursday afternoon in a telegram. Jan. 4 George W. Swords of GrinThis message only gave the bare nell, Ian., who was in North Dakota statement that Jones (had been caj closing up the affair of the Minot tured at Canadian, Texas, by the seeNational bank, was appointed reret service men, and was being he ceiver. One dividend of 25 per cent there pending action upon the parts was recently paid on deposits. of the federal officials of the district Very shortly after the failure of the of Nroth Dakota. Rugby bank, the First State bank of In accordance with this inform Barton, N. D., of which Jones was tion, the copy of the warrant that president, failed and Walter Dohney out for Jones was forwarded tother was appointed receiver. and the long missing banker will Federal indictments were returned brought back to the state to face the against Jones by the last U. S. grand charges that have been placed against jury and bench warrants issued for him. this ar. est. Out of the Way Place Two colored cooks want position with The scene of Jones' arrest lies in cook car. Can deliver the goods. In Hemphill county, Texas. Canadian is Exp quire at Grand Hotel, Minot.

5. August 27, 1909 The Bowbells Tribune Bowbells, ND

Article from The Bowbells Tribune, August 27, 1909

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ANDY JONES IS BEHIND THE BARS. Government Sleuths, After Long Search, Run to Earth Absconding Cashier of the Rugby National Bank and Head of Barton State Bank. (Fargo Forum, Aug. 21.) Andy Jones, North Dakota's frenzied financier, is under arrest. The Rugby banker who is credited with promoting the most astounding deals in the history of the state, has been grappled by the strong arm of the federal authorities. After being traced for six months by secret service men and detectives, Andy Jones, ex-cashier of the National bank of Rugby, N. D., president of the First State bank of Barton, N. D., and promoter of the "Jones sheep industry," was yesterday placed under arrest and is now held in jail in Texas, awaiting an order for removal to North Dakota, where he will be forced to answer for what is considered one of the most collosal frauds ever disclosed. While Jones will be prosecuted for deals in connection with the First National bank at Rugby, being the only matter in which the federal officials have jurisdiction, his bond floating in connection with the "sheep ranch" is said to have cost eastern and middle state capitalists thousands of dollars. The last heard of Jones was in Minneapolis the first week in January when he drew a check of $7,000 on the First National bank of Rugby. At that time he dropped out of sight. The doors of the bank closed and on Jan. 4, George W. Swords of Grinnell, Ia., who was in North Dakota closing up the affairs of the Minot National bank, was appointed receiver. One dividend of 25 per cent was recently paid on deposits. Very shortly after the failure of the Rugby bank, the First State bank of Barton, N. D., of which Jones was president, failed and Walter Dohney was appointed receiver. Federal indictments were returned against Jones by the last U. S. grand jury and bench warrants issued for his arrest. JONES BEING HELD AT DALLAS. Jones is now being held at Dallas, Texas, awaiting removal to North Dakota. A copy of the indictment has been forwarded to Texas and Jones rewill on the be matter arraigned of issuing in United an States order of court moval. North Dakota officials have nothing whatever to do until the prisoner is turned over to the marshall of Texas, who will have Jones in custody until Fargo is reached.

6. August 27, 1909 The Searchlight Culbertson, MT

Article from The Searchlight, August 27, 1909

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CAPTURE OF ANDY JONES Reported to Have Been Effected in Texas Last Week. Fargo.-That Andy Jones, frenzied financier, ex-banker, promoter, and mayor of Rugby, N. D., is now under arrest is the information brought here from Canadian, Texas, a day or two ago, and now generally credited in this city. Jones is wanted for fraud, defalcation, and bank wrecking, and if in custody, will be brought back to this state at once by federal authorities in connection with his deals at Rugby last winter. Jones is wanted by the government for deals in connection with the First National bank at Rugby, being the only matter in which the federal officials have jurisdiction, his bona floating in connection with the "sheep ranch" is said to have cost eastern and middle state capitalists thousands of dollars. The last heard of Jones was at Minneapolis the first week in January, when he drew a check for $7,000 on the First National bank of Rugby. At that time he dropped out or sight The doors of the bank closed and on January 4, George W. Swords, of Grinnell, Iowa, who was in North Dakota closing up the affairs of the Minot National bank, was appointed receiver. One dividend of 25 per cent was recently paid on deposits. Very shortly after the failure of the Rugby bank, the First State bank of Barton, N. D., of which Jones was president, failed and Walter Dohney was appointed receiver. Federal indictments were returned against Jones by the last U. S. grand Jury and bench warrants issued for his arrest.

7. August 27, 1909 The Pioneer Express Pembina, ND

Article from The Pioneer Express, August 27, 1909

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CAPTURE OF ANDY JONES Reported to Have Been Effected in Texas Last Week. Fargo.-That Andy Jones, frenzied financier, ex-banker, promoter, and mayor of Rugby, N. D., is now under arrest is the information brought here from Canadian, Texas, a day or two ago, and now generally credited in this city. Jones is wanted for fraud, defalcation, and bank wrecking, and if in custody, will be brought back to this state at once by federal authorities in connection with his deals at Rugby last winter. Jones is wanted by the government for deals in connection with the First National bank at Rugby, being the only matter in which the federal officials have jurisdiction, his bona floating in connection with the "sheep ranch" is said to have cost eastern and middle state capitalists 'housands of dollars. The last heard of Jones was at Minneapolis the first week in January, when he drew a check for $7,000 on the First National bank of Rugby. At that time he dropped out or sight The doors of the bank closed and on January 4, George W. Swords, of Grinnell, Iowa, who was in North Dakota closing up the affairs of the Minot National bank, was appointed receiver. One dividend of 25 per cent was recently paid on deposits. Very shortly after the failure of the Rugby bank, the First State bank of Barton, N. D., of which Jones was president, failed and Walter Dohney was appointed receiver. Federal indictments were returned against Jones by the last U. S. grand jury and bench warrants issued for This arrest.