12121. Buttzville State Bank (Buttzville, ND)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
July 25, 1910
Location
Buttzville, North Dakota (46.508, -97.630)

Metadata

Model
gpt-5-mini
Short Digest
a17e81be

Response Measures

None

Description

The bank was closed by the State Bank Examiner in July 1910 (government action). It did not reopen; by spring 1911 the bank is described as having failed and a receiver is handling matters. 1912 articles discuss settlement with surety company for state deposits. No evidence of a depositor run.

Events (3)
1. July 25, 1910 Suspension
Cause
Government Action
Cause Details
Closed by State Bank Examiner Oliver Knutson following an examination that found insolvency, unpaid capital, worthless Chicago paper, and irregularities.
Newspaper Excerpt
The Buttzville State bank was closed Tuesday by State Bank Examiner Oliver Knutson, pursuant to an examination of that institution.
Source
newspapers
2. March 1, 1911* Receivership
Newspaper Excerpt
During the spring of 1911 the Buttzville State bank failed ... Roy A. Nelson, deputy bank examiner, is now in charge pending the appointment of a receiver. (Articles state the bank failed in spring 1911 and a receiver handled assets.)
Source
newspapers
3. February 13, 1912 Other
Newspaper Excerpt
The Dakota Trust company of Fargo was surety for the bank and an action commenced immediately by the attorney general for the recovery of the deposit and the trust company has just settled for the full amount of principal and interest ... the matter will be settled by Judge Allen at Lisbon February 17th.
Source
newspapers

Newspaper Articles (4)
1. July 26, 1910 Bismarck Daily Tribune Bismarck, ND
Article from Bismarck Daily Tribune, July 26, 1910

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Article Text

BANK CLOSED AT BUTTZVILLE ACCOUNT POOR MANAGEMENT Sheldon, N. D., July 25.-The Buttzville State bank was closed Tuesday by State Bank Examiner Oliver Knutson, pursuant to an examination of that institution. The bank was started about a year ago with a man from Chicago owning a controlling interest, and the balance of the stock being held mostly by stockholders in Lisbon. The recent examination disclosed the fact that but little of the capital stock, which was $10,000, had been paid in, the balance being in the form of notes payable to the bank which had never been taken care of. It is also said that the expense account was twelve or fifteen hundred dollars in excess of the profits, and that the bank building and fixtures were held on the books at an inflated value, the two items taken together placing the bank in an insolvent condition. Besides this, it is claimed that other irregularities were found, among them being several thousand dollars worth of worthless Chicago paper in their assets. The deposits of the bank amounted to only about $6,000, $2,000 of which was a state deposit, so that the loss to depositors will be small. Roy A. Nelson, deputy bank examiner, is now in charge pending the appointment of a receiver.

2. July 28, 1910 The Fargo Forum and Daily Republican Fargo, ND
Article from The Fargo Forum and Daily Republican, July 28, 1910

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Article Text

LOSSES ARE LIGHT. Deposits in Bank That Was Closed Were Very Small. Lisbon, N. D., July 28.-Only small losses will be sustained at Buttzville by reason of the closing of the Buttzville State bank recenely by State Examiner Knudson. The bank's total deposits are not more than about $6,000, and of that amount $2,000 was state money which is protected by a bond. Roy A. Nelson, deputy bank examiner, is now in charge of the institution and is cleaning up the books and putting things in shape for the receiver when one is appointed.

3. February 13, 1912 Bismarck Daily Tribune Bismarck, ND
Article from Bismarck Daily Tribune, February 13, 1912

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Article Text

SURETY COMPANY SETTLED. During the spring of 1911 the Buttzville State bank failed and at the time of the failure there was on deposit in that bank $1,213.98 of state funds. The Dakota Trust company of Fargo was surety for the bank and an action commenced immediately by the attorney general for the recovery of the deposit and' the trust company has just settled for the full amount of [principal and interest which amounts to $1,271.13. The Trust company raises an interesting question as to whether or not the state was a preferred creditor at the time of the failure. maintaining that it was while the receiver of the bank holds that the state was not. The matter will be settled by Judge Allen at Lisbon February 17th. There is a sim.ar case at Lakota where the Peoples state bank had some county deposits on hand at the time of failure, and the received held that the county was not a deferred creditor. That case was argued a few days ago in the supreme court. In the case of the Buttzville bank if it is decided that the state was a preferred creditor, then the trust company will be reimbursed in full before any of the individual depositors.

4. February 15, 1912 The Evening Times Grand Forks, ND
Article from The Evening Times, February 15, 1912

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Article Text

MAKE SETTLEMENT Bismarck, N. D., Feb. 15.-During the spring of 1911 the Buttzville State bank failed and at the time of the failure there was on deposit in that bank $1,213.98 of state funds. The Dakota Trust company of Fargo was surety for the bank and an action commenced immediately by the attor: ney general for the recovery of the deposit and the trust company has just settled for the full amount of principal and interest which amounts to $1,217.13. The trust company raises an interesting question as to whether or not the state was preferred creditor at the time of the failure, maintaining that it was while the receiver of the bank holds that the state was not. The matter will be settled by Judge Allen at Lisbon February 17. There is a similar case at Lakota where the People's State bank had some county deposits on hand at the time of failure, and the receiver held that the county was not a preferred creditor. That case was argued a few days ago in the supreme court. In the case of the Buttzville bank it is decided that the state was a preferred creditor ,then the trust company will be reimbursed in full before any of the individual depositors.