1.
October 14, 1926
Argus-Leader
Sioux Falls, SD
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CITY NATIONAL BANK OF BISMARCK CLOSES
Bismarck, D., Oct. City National bank of closed today No statement as to the reason for closing available. was reported that bank officials had received notice morning from banking open business until the arrival The capitalized at $50,000 and had surplus.
ROBT. GOODWIN MARRIES Angeles, Oct. Robert Goodwin, said nephew the late Nat Goodwin, actor, Elizabeth Marks, yesterday, this his eighth trip to the name on the stage. Miss Marks member of cast. was her marriage.
2.
October 15, 1926
The Bismarck Tribune
Bismarck, Mandan, ND
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CITY NATIONAL BANK MAY BE REORGANIZED B. K. Patterson. Chief Bank Examiner. in Charge of Institution's Affairs R. K. Patterson of Minneapolis, chief national bank examiner of the ninth Federal Reserve district, arrived in Bismarck last night to take charge of the affairs of the City National bank here, which failed to open its doors Thursday morning. Notices posted on the doors this morning state that the bank was closed by order of the board of directors, and that the national bank examiner is now in charge. Mr. Patterson was in conference the greater part of the forenoon with officers and directors of the institution, and has not yet had an opportunity to make accurate statements as to the bank's future. A' hasty investigation of affairs leads to the belief that a reorganizaion along satisfactory lines is better than a possibility. Negotiations along those lines are under way, and it is possible that definite action will be forthcoming shortly. Hess Will Take Charge Grant H. Hess of Bismarck, national bank examiner for this district, will be actively in charge of the institution a little later, as Mr. Patterson plans to return to Minneapolis probably Sunday. It will be Mr. Hess' duty to perfect the details of reorganization if it is found such a plan is feasible. In the event that a receivership is found necessary, the appointment is made by the comptroller of currency at Washington. The city water works department had approximately $23,000 on deposit in the closed bank, while the Bismarck school district had about $24,000 there. Both of these accounts are covered by a personal bond, according to city and school district officials, and no loss to either the city or the school district is anticipated. Payment of $7,000 interest on city waterworks bonds, due today, will not be delayed although a check drawn on the City National bank had been sent to Minneapolis to cover it. The city had ample funds in other banks here to make the payment and arrangements were made accordingly. No County Funds in Bank No Burleigh county funds have been on deposit in the bank for almost a year, since the bank declined < to furnish a new bond, as provided by law, on July 1. 1925. Officials of a the bank at that time told county e officers that they did not care for county deposits, claiming that the 8 money was non-productive to them, S and consequently county money then e on deposit was gradually withdrawn. The board of county commissioners recently went on record as requiring surety bonds from all depositaries handling Burleigh county funds. Officials of the closed bank had no statements to make today, except that the affairs of the institution were now in the hands of the examiner.
3.
October 22, 1926
The Bismarck Tribune
Bismarck, Mandan, ND
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DEPOSITORS OF CITY NATIONAL CALL MEETING Session Will Be Held at Association of Commerce Rooms Saturday Night RECEIVER IS NAMED Appointment Does Not in Any Way Affect Possibil. ity of Reorganization A meeting of all depositors of the City National bank has been called for Saturday evening at the offices of the Bismarck Association of Com merce. The meeting will be held at 8 o'clock and all persons who are interested in the affairs of the City National bank are urged to attend. An effort will be made at the session to learn the exact status of the situation and whether or not reorganization of the institution can be accomplished. J. M. Riley Is Receiver Jay M. Riley has been appointed receiver for the City National bank here and is expected to arrive in Bismarck today or tomorrow to take active charge of the closed bank's affairs, according to word received today by Grant H. Hess, national bank examiner for this district, who has been in charge of the bank since B. K. Patterson of Minneapolis, chief national bank examiner for the ninth federal reserve district, returned to his home a week ago. Notification of Mr. Riley's appointment came from the comptroller of currency at Washington, but nothing is known here as to who Mr. Riley is or from where he is coming. With Mr. Riley's arrival here, Mr. Hess will be relieved of further active duty in connection with this bank and will again devote his time to work throughout his district. Reorganization Anticipated Conditions still point very favorably toward a possible reorganization (Continued on page seven.)
4.
October 22, 1926
The Bismarck Tribune
Bismarck, Mandan, ND
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DEPOSITORS OF CITY NATIONAL CALL MEETING | Continued from page one) of the bank here, according to those in close touch with the situation, and the appointment of a receiver will not in any way affect negotiations now under way toward that end. Mr. Riley will take charge of the bank's affairs until the reorganization is completed or until it is definitely determined that the bank must be placed in liquidation. In the latter event he will, of course, have charge of the liquidation. Officers of the bank are said to be in the Twin Cities at the present time, endeavoring to make arrangements for reopening of the institution.
5.
October 23, 1926
Grand Forks Herald
Grand Forks, ND
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REILLY NAMED BANK RECEIVER
Bismarck, N. D., Oct. 22. Jay M. Reilly has been named receiver for the City National bank here, according to information from the comptroller of the rency. information Reilly's place of business or other connections was contained in the of was with attempts which are being made to organize the bank.
Oct. dently to stop from the months market prices are demand general are occupied orders season markets generally the the of New Half 43 quarter combing quarter blood 80
6.
November 15, 1926
The Bismarck Tribune
Bismarck, Mandan, ND
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PLAN DEVISED TO LIQUIDATE CITY NATIONAL Depositors' Committee Has Tentative Proposal to Keep Bank From Receivership DEPOSITORS TO MEET Will Gather at City Auditorium Tuesday Night to Hear Plan Explained A plan whereby the City National bank of Bismarck, closed several weeks ago, may be liquidated and at least 50 per cent of its deposits be made available to the depositors within the near,future has been devised by the depositors' committee, appointed at a mass meeting of depositors shortly after the bank's closing. This plan will be presented to the depositors for their approval at another mass meeting called for Tuesday night at .8 o'clock at the city auditorium. The First National bank has cooperated with the depositors' committee in arriving at the tentative plan, which provides that at least 50 per cent of each City National depositor's account will be transferred in like kind to the First National bank, where it will be available for use immediately, as a result of funds which would be raised by the depositors' committee and advances by the First National bank on the bills receivable of the City National. This would mean that 50 per cent of a depositor's checking account would be placed on checking account at the First National bank, 50 per cent of one's savings account would be placed on savings account at the First National bank, or if one held a certificate of deposit at the City National, he would be issued a certificate of deposit at the First National for 50 per cent of its amount. May Pay In Full The balance of the deposits in the City National, according to the proposal, would be assigned to the City National Depositors' Holding company. All equity in assets of the would be assigned to this comto be held in and the company bank pany positors, work trust of for converting the would deproceed with the the assets into cash and liquidating this balance. Members of the depositors' committee state they believe the depositors would eventually be paid practically in full, although this would depend somewhat on crop conditions during the next few years, (Continued on page two.)
7.
November 16, 1926
The Bismarck Tribune
Bismarck, Mandan, ND
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DEPOSITORSOF A CITY NATIONAL MEET TONIGHT Will Decide Whether Plan Offered By Depositors' Committee Will Be Approved WOULD TRANSFER 60% First National Would Take Over That Percentage of Depositors' Claims Depositors in the City National bank, closed several weeks ago, will meet at the city auditorium tonight to hear a tentative proposal for liquidation of the bank's affairs explained and to decide whether or not it shall be approved. If depositors approve of the plan, they will be asked to sign agreements, thereby putting the proposal in shape to present to the comptroller of currency for his approval. The proposal calls for transfer of 60 per cent of each depositor's claim in like kind to the First National bank. Each depositor would agree to accept the balance of 40 per cent in the form of a certificate of stock to be issued by the Depositors' Holding company. This company will be formed by the depoistors for the purpose of liquidating the bank's assets and if the plan meets with the approval of those attending tonight's meeting, five directors for the holding company will be elected tonight. Approval Believed Certain The 60 per cent would, under this agreement, be available to the depositors as soon as the transfer is completed, in the same form in which the money was on deposit at the City National, and it is believed by members of the depositors' committee will readily of approve the proposition. The which depositors will be reads as asked agreement to sign being follows: "I, the undersigned, a depositor and creditor of the City National Bank of Bismarck, North Dakota, in consideration of the benefits accruing to me, do hereby agree to accept sixty per cent of my claim for deposit or other indebtedness in the City National Bank of Bismarck, in the form of a like deposit or indebtedness in the First National Bank of Bismarck, and to accept forty per cent, the balance of said deposit or other indebtedness in the City National Bank of Bismarck, in the form of a certificate of stock to be issued hy the Depositors Holding Company (a holding company formed by the depositors of said City National Bank of Bismarck for the purpose of liquidating its assets) and I hereby assign said forty per cent of my said deposit, or other indebtedness, in the City National Bonk of Bismarck to said Depositors' Holding Company, and Ihereby authorize the comptroll er of the currency, or J. M. Riley, the receiver of said City National Bank of Bismarck, to dd whatever act or thing is necessary to complete the said assignment of my said deposit or other indebetdness to such holding company. is to "This agreement the become comptroller binding when approved by of the currency at Washington, D. C. All further claim against said City National Bank, the comptroller of the currency, or said receiver, is hereby waived."
8.
December 4, 1926
The Bismarck Tribune
Bismarck, Mandan, ND
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DEPOSITORS' SIGNATURES SOLICITED Those Who Have Not Signed Urged to Act Quickly to Hasten Liquidation Work of securing signatures of depositors in the closed City National bank to agreements accepting the proposition presented by the depositors' committee is progressing nicely, according to those who are carrying on the work. Twenty local men are pushing the work, each being assigned a certain group of depositors with whom to confer. Practically every depositor who had a substantial sum in the bank has already signed the agreement, but there a acwhich In owners counts obtained. still these remains for accounts many number signatures instances not of small must be of are even aware of the fact that they have deposits in the bank, and many of the balances are for only a few cents-probably left there due to errors in the depositors' personal bookkeeping. Quick Action Urged , An effort is being made by the depositors' committee to impress those who have not yet signed the agreement with the importance of doing so promptly, since every signature must be obtained before the proposal can be presented to the national banking department for approval and the made soon as the of currency, will per depositors the proposition comptroller plan have receives of 60 effective. the the approval cent As of their use the First balance of 40 cent the through trust by deposits depositors' per available National will commitee be bank. for held The and in returned to the depositors at intervals as the bank's assets are liquidated. Jay M. Riley, receiver placed in charge of the bank's affairs by the national banking department, has just prepared the folowing statement of the institution's resources and liabilities on October 14, the date it was closed by action of the board of directors: Assets $630,108.41 Bills Receivable 19,501.16 Cash on hand Assets other than Bills Receivable and cash on hand 413,785.61 Total $1,063,395.18 Liabilities $864,473.31 Liabilities unsecured Deposits secured by pledge of assets of the bank aggregating $80,000.00 as collateral 76,750.62 Rediscounts secured by pledge of assets of the bank aggregating None, None as collateral Bills Payable secured by pledge of assets of the bank aggregating $160,28,252.39 762.68 as collateral Total $969,476.32
9.
January 6, 1927
The Bismarck Tribune
Bismarck, Mandan, ND
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Notice to Creditors Doesn't Hinder Work of Depositors' Body Publication of a notice to creditors of the City National bank concerning the immediate filing of claims, which starts today in the Tribune, in no way affects the work of the depositors' committee, according to Jay M. Riley, receiver in charge of the local institution. This publication simply advises creditors that claims must be filed within three months from date of Inotice, or they may be disallowed. Mr. Riley states, and is printed according to law, regardless of any action pending for liquidation of the bank's affairs. Depositors in the closed bank are urged not to be alarmed concerning the legal notice, as the work of the depositors' committee is progressing nicely and will not be hindered in any way by this notice.
10.
February 9, 1927
The Bismarck Tribune
Bismarck, Mandan, ND
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CLAIM PROOFS MUST BE FILED BY DEPOSITORS Agreements or Waivers, Already Signed By Many, Are Not Sufficient Depositors in the closed City National Bank are urged to file proofs of claims immediately in a statement issued today by Jay M. Riley, receiver in charge of the institution's affairs. The regulation form of proof, with pass book, certificate or other evidence of indebtedness, must be filed with the receiver regardiess of whether or not a waiver has been signed, Mr. Riley points out, and delay on the part of many depositors in attending to this government requirement causes more delay in the handling of the bank's affairs. Many depositors who have signed waivers in connection with the move under way to liquidate the bank's affairs and do away with the receivership are of the belief that no further action is necessary on their part, Mr. Riley says. On account of this apparent misunderstanding, many claims have not yet been filed. The government requires that the claims be filed in proper form, regardless of whether the proposed liquidation plan is completed or the receivership is continued, according to Mr. Riley, and persons who have not yet done so are urged to report at the receiver's office in the bank, where all forms and information are available. An official notice to the bank's creditors is published each Thursday in the Tribune.
11.
March 14, 1927
The Bismarck Tribune
Bismarck, Mandan, ND
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CITY NATIONAL BANK BUILDING IS SOLD TO JOS. BRESLOW FOR $110,110 stad clinic, the building is at presJos. Breslow, for many years affiliated with the business life of ent fully occupied, and it is expected that these offices will be rented Bismarck, today purchased the City in the near future. The corner National bank building at the corner of Fourth street and Main avenuerooms on the ground floor are still being used by the bank receivership, one of Bismarck's principal business corners. but will no doubt find a ready lessor The directors of the Depositors' when they are no longer needed for banking purposes. The ground floor Holding company, organized last fall to take over the affairs of the closed room recently vačated by the Lenhart Drug company has already been City National bank, met at 2 o'clock this afternoon in the office of G. F. leased to the Globe-Gazette company Dullam to open sealed bids on the of Wahpeton and a line of office supplies will soon be in place there. building. Mr. Breslow's bid for Other ground floor tenants include $110,110 was the only one presented the Sweet Shop, the Harris-Robertand was accepted by the directors.
12.
March 23, 1927
The Bismarck Tribune
Bismarck, Mandan, ND
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Many new Spring Coats arriving at the Bismarck Cloak Shop. NOTICE AND ORDER FOR PUBLICATION. State :of North Dakota County of Burleigh. In District Court, Fourth Judicial District. In the Matter of the Receivership of City National Bank, Bismarck, N. D. Notice is hereby given that on the 5th day of April, 1927, at the Court Rooms of this Court, in the City of Bismarck, County of Burleigh and State of North Dakota, at the hour of 10 o'clock a. m., of that day or as soon thereafter as counsel can be heard. the following matter will be presented and heard: The petition of Jay M. Riley, Reeeiver of the City National Bank of Bismarck, North Dakota, insolvent, for an order herein granting authority to said Receiver for the sale of assets of the said City National Bank, Bismarck, N. D., as set forth and provided in said petition and upon the terms and conditions as set forth therein, which said petition is on file in the office of the Clerk of the District Court in and for the County of Burleigh and State 75f North Dakota, at Bismarck. North Dakota. It is further ordered. that a copy of this Notice and Order be served upon all parties interested therein, by publication in the Bismarek ribune, a daily newspaper published in Bismarck, Burleigh County, N. D. said publication once each week for a period of two successive weeks. Dated this 22nd day of March, 1927. = By the Court: J. A. COFFEY, of the District Court. Hyland nd Foster, Attorneys for Petitioner, Bismarck, North Dakota. (First publication March 23, 1927.) 3/23-30
13.
March 30, 1927
The Bismarck Tribune
Bismarck, Mandan, ND
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NOTICE AND ORDER FOR PUBLICATION. State of North Dakota County of Burleigh. In District Court, Fourth Judicial District. In the Matter of the Receivership of City National Bank, Bismarck, N. D. Notice is hereby given that on the 5th day of April, 1927, at the Court Rooms of this Court, in the City: of Bismarck, County of Burleigh and State of North Dakota, at the hour of 10 o'clock a. m., of that day or as soon thereafter as counsel can be heard, the following matter will be presented and heard: The petition of Jay M. Riley, Receiver of the City National Bank of Bismarck, North Dakota, insolvent, for an order herein granting authority to said Receiver for the sale of assets of the said City National Bank, Bismarck, N. D., as set forth and provided in said petition and upon the terms and conditions as set forth therein, which said petition: is on file in the office of the Clerk of the District Court in and for the County of Burleigh and State of North Dakota, at Bismarck, North Dakota. It is further ordered, that a copy of this Notice and Order be served upon all parties interested thereln, by publication in the Bismarck Tribune, a daily newspaper published "In Bismarck, Burleigh County, N. D., said publication once each week for a period of two successive weeks. Dated this 22nd day of March, 1927. ,By the Court: J. A. COFFEY, Judge of the District Court. Hyland and Foster, Attorneys for Petitioner, Bismarck, North Dakota. (First publication March 23, 1927.) 3/23-30
14.
May 16, 1927
The Bismarck Tribune
Bismarck, Mandan, ND
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CALLED TO NEBRASKA Jay M. Riley, receiver in charge of the City National bank here, went to Lincoln, Neb., Saturday evenimg where he was called as a witness in a bank case now being in court there. He will be away a week or 10 days.
15.
May 17, 1927
The Bismarck Tribune
Bismarck, Mandan, ND
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Want Alley Opened The request of property owners to have steps taken to open a 20-foot alley running north and south in block 118, original plat, and block 22. Northern Pacific addition, was referred to the city auditor, who will interview some of the property owners affected. The proposed alley would be in the block between Rosser avenue and Avenue A, and Second and Third streets. An amendment to the zoning ordinance, making certain changes in the boundaries of the city's industrial district to include some of the land adjoining the Soo line tracks, was introduced at the meeting Monday night. The commissioners accepted as to surety the bond of J. C. Young for $1,000. covering the construction of sidewalks in the city. Sidewalk Ordered In A petition signed by John George Gussner and others for the construction of a sidewalk on the north side of Thayer avenue, between Twelfth and Thirteenth streets, was read, and the sidewalk was ordered built. Request of John Nathan and others for a street light at the corner of Avenue F and Eleventh street was referred to Commissioner French. The request of W. P. Lomas for permission to erect gasoline pumps at the corner of Main avenue and Ninth street was given further discussion, but action thereon was deferred. city auditor was instructed to motify owners of business places that there must be a clearance of seven reet between the sidewalk and all awnings, and that those which are at present too low must be raised. Magistrate's Books Audited W. S. Casselman, former police magistrate, collected fines due the city amounting to $714.80 'between the date of the last previous audit and April 30, when his term expired, according to a report presented to the commission by City Auditor M. H. Atkinson and City Treasurer A. J. Arnot, who audited his books. The audit was made from Casselman's check book register, the report said. The former police magistrate turned over to the city treasurer a check for $441.50, and said that there was on deposit in the closed City National bank the sum of $253.30, which consisted of fines he had collected, the report stated. This leaves a discrepancy of $20 in the amounts shown on the check book register and the amounts on deposit in the two banks, according to the auditors. The report was accepted and the auditor instructed to secure from Gasselman the balance due the city, after City Attorney C. L. Young ruled that the former official was liable for the amount on deposit in the closed bank, since he had no authority to deposit money there in the name of the city.
16.
May 18, 1927
The Bismarck Tribune
Bismarck, Mandan, ND
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# A Real Community Service
Col. C. B. Little, through the agency of the First National bank, has performed a real community service in connection with the partial liquidation of the affairs of the City National Bank. Together with W. H. Webb, and others, he devised a feasible scheme to thaw out the best of the defunct bank's assets.
It was no easy task to procure some $490,000 and those serving at first on the depositors' committee and now as a holding company worked earnestly to make available 60 per cent of the depositors' money.
The operation of a strong financial institution such as the First National Bank has come home forcibly to many who take the service of a bank as a matter of course, but it always takes a crisis to emphasize the value of an institution with reserves and conservative management.
When the matter of partial liquidation was first broached, Col. Little extended every personal facility at his command to expedite the settlement. His acquaintance in Washington, D. C., especially with the treasury department, materially aided, and a trip to the national capital by Col. Little smoothed over many of the obstacles encountered in the early stages of the negotiations.
With 60 per cent of the deposits now available, relief comes to many who were pinched by the closing of the City National Bank. With good crops and the careful husbanding of other resources and collateral, another dividend should materialize later, but, of course, that is problematical.
Had the receivership been continued and the bank's affairs wound up under such a regime, the depositors would have received much less than is being paid out today over the counters of the First National Bank. Some banks with resources as great as the City National's at the time of closing have paid as little as 25 per cent, many even less. If the depositors take the trouble to investigate, they can consider that the arrangement made was especially good and that it was done through the cooperation of such citizens as Col. Little and Mr. Webb, who took a deep interest in saving every possible cent for the City National Bank depositors.
17.
August 17, 1927
The Bismarck Tribune
Bismarck, Mandan, ND
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JUDGE CLOSES SWETT ACTION Coffey, at Jamestown, Dismisses Case Against Kidder County Man Jamestown, N. D., Aug. 17.-Judge J. A. Coffey, in district court here Tuesday sustained a demurrer in the case of the Depositors Holding company of the closed City National bank, Bismarck, against Herman Swett, Nonpartisan floor leader in the last session of the legislature, when the case came up for hearing. This will close the case unless an appeal to the state supreme court is taken. The court, in dismissing the action, held that informations filed against Swett do not state a criminal cause for their issuance. Sweet made an assignment in writing of an insurance policy and the policy never had been delivered to the bank. Later, the policy was surrendered to the life insurance company and Swett received $260, it is alleged. The court held that no statute had been perfected to govern assigned property and no violation of the law against the disposal of property with a lien against it was shown. The most the action amounted to, Judge Coffey declared, was a breach of contract.