12124. First Security Bank (Carpio, ND)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
December 27, 1920
Location
Carpio, North Dakota (48.443, -101.715)

Metadata

Model
gpt-5-mini
Short Digest
e70b5a35

Response Measures

None

Description

The First Security Bank of Carpio voluntarily closed Dec 27, 1920 citing insufficient cash reserves because farmers refused to sell grain (local agricultural shock). Shareholders initially planned to reopen in January 1921, but a receiver was appointed in April 1921 and the bank was treated as insolvent, indicating permanent closure. Bank type not specified in articles.

Events (4)
1. December 27, 1920 Suspension
Cause
Local Shock
Cause Details
Shortage of cash reserve traced to farmers refusing to sell grain and pay indebtedness, reducing liquidity and forcing voluntary closure.
Newspaper Excerpt
The First Security Bank of Carpio, owned by the same trust company, also closed ... the bank closed voluntarily because of a shortage of cash reserve which condition is traceable to the refusal of farmers to sell their grain and pay indebtedness to the bank.
Source
newspapers
2. January 4, 1921 Other
Newspaper Excerpt
The annual meeting ... shareholders were unanimously in favor of proceeding with the re-opening of the two banks and pledged their combined resources ... they were very hopeful of reopening the two banks about January 15. Shareholders pledged $10,000, raising more than half of that amount that day.
Source
newspapers
3. April 19, 1921 Receivership
Newspaper Excerpt
G. R. Van Sickle ... was notified ... that he has been appointed receiver for the First Security Bank of Carpio.
Source
newspapers
4. January 26, 1922 Other
Newspaper Excerpt
Depositors Receive 40% Dividend On Closed Carpio Bank ... receiver ... has succeeded in declaring a dividend of 40% for the depositors of the latter institution.
Source
newspapers

Newspaper Articles (15)
1. December 27, 1920 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, December 27, 1920

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TWO MOREN.D. BANKS CLOSED Institutions at Minot and Carpio Report Insufficient Cash Reserve. Minot. Dec. 27.-The First Farmers Bank of Minot. capitalized at $50.000 with $5,000 surplus. owned by the Savings Loan and Trust company of which Anthony Walton is president, and G. A. Ebbert, general manager, closed voluntarily today. The First Security Bank of Carpio, owned by the same trust company, also closed and G. A. Ebbert instructed the American Exchange Bank of Watford City, also owned by the-Savings Loan and Trust company to remain. open unless depositors institute a run on the institution. Up to a late hour this afternoon no information has been received as to whether Watford City Bank had closed or not. According to a statement made by Mr. Ebbert the bank closed voluntarity because of a shortage of cash reserve which condition is traceable to the refusal of farmers to sell their grain and pay indebtedness. to the bank. O. E. Lofthus, state bank examiner, is in this section of the state and is expected to arrive in Minot tonight and take charge of the bank. The annual meeting of the Savings Loan and Trust company will be held January 4 and at that time the matter of the farmers' liquidating their paper with the bank will be considered and an ample cash reserve created to enable the bank to reopen in the very near future, Mr. Ebbert states. The other banks of the trust company will reopen when the Minot bank secures a sufficient cash reserve. The banks were organized by Grant C. Youmans, former Minot banker and now of Minneapolis. He resigned as president of the trust company and banks more than a year ago.

2. December 28, 1920 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, December 28, 1920

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CHICAGO BANK CLOSED; PRESIDENT IS MISSING Chicago, Dec. 28.-Depositors of the Dressel Commercial and Savings Bank waited in vain for its doors to open vesterday and when the president Andrew Dressel, could not be found, creditors petitioned Judge Carpenter in Federal District Court to adjudge the bank bankrupt. The Chicago Tile and Trust Company was appointed receiver, Other bank officials said the Dressel bank's funds had been depleted through the operations of hold un men and burglars during the past two years. Minot. N. D., Dec. 28.-The First Farmers' Bank of Minot was closed yesterday. Depleted reserve was given as the reason. The First Security Bank of Carpio, N. D., associated with the First Farmers of Minot, was closed yesterday afternoon. The closing of the People's State Bank at Hatton, N. D., was announced in Fargo. Princeville, Ore., Dec. 28.-The Crook County State Bank. of this place. failed to open its doors yesterday Shrinkage of values of cattle and sheep on which the institution had made loans was said to have been responsible.

3. December 29, 1920 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, December 29, 1920

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Receiver Named For Minot Bank; Probably Will Open In January Minot, N. D., Dec. 29.-O. E. Lofthus, state bank examiner, arrived in Minot Monday night and placed Ole Lovik of the state bank examiner's office in charge of the First Farmers Bank of Minòt which closed yesterday. Mr. Lovik is checking up the institution. Mr. Lofthus remained in Minot until early Tuesday morning, going from here to Mohall. He expects to return to Bismarck Tuesday night. G. A. Ebbert, general manager of the Savings Loan and Trust Co., which owns the First Farmers Bank of Minot, the First Security Bank of-Carpio, which also closed and the American Exchange bank at Watford City, stated today that the Watford City institution has not closed and will remain open. The opinion is generally expressed by those connected with the trust company that the Minot and Carpio banks will re-open the fore part of January. The shareholders of the company hold their annual meeting in Minot January 4.

4. December 29, 1920 Every Evening, Wilmington Daily Commercial Wilmington, DE
Article from Every Evening, Wilmington Daily Commercial, December 29, 1920

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CHICAGO BANK CLOSED. Three in North Daketa Also Forced to Shut Doors. Chicago, Dec. 29.-Depositors of the Dressel Commercial and Savings Bank waited in vain for its doors to open Monday and when the president. Andrew Dressel. could not be found. creditors petitioned Judge Carpenter in Federal District Court to adjudge the bank bank rupt. The Chicago Title and Trust Company was appointed receiver Other bank officials said the Dressel bank's funds had been depleted through the operations of hold-up men and burglars during the past two years. Minot. N D. Dec. 29.-The First Farmers Bank of Minot was closed Monday Depleted reserve was given as the reason The first Security Bank of Carpio, \ D., associated with the First Farmers of Minot. was closed Monday afternoon. The closing of the People's State Bank of Hatton. N. D., was announced in Fargo.

5. December 30, 1920 The Ward County Independent Minot, ND
Article from The Ward County Independent, December 30, 1920

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Institution Owned by Savings Loan and Trust Co. Expects to Reopen Soon-Security Bank at Carpio Also Closed. The First Farmers Bank of Minot, capitalized at $50,000 with $5,000 surplus, owned by the Savings Loan and Trust Co., of which Anthony Walton is president and G. A. Ebert general manager, closed voluntarily Monday. The First Security Bank of Carpio owned by the Savings Loan and Trust Co., also closed, but Manager Ebert stated that the American Exchange Bank at Watford City, N. D., a kindred institution, would remain open unless the depositors made a run on the bank. Mr. Lovik, a state bank examiner, who resides in this city, is now in charge of the affairs of the bank. Altho there is a sign on the front of the bank notifying the public that the institution has been temporarily closed, the Savings Loan and Trust Co. is still doing business in the building occupied jointly with the bank. A representative of the Independent interviewed Mr. Walton Tuesday. He stated that the reopening of the bank would depend largely upon the decision of the stockholders who will hold their annual meeting Jan. 4. Mr. Walton explained that poor collections during the fall made it necessary to close the bank temporarily at least. While there are over $300,000 bills receivable, very little money has been paid in during the fall, he said. Money kept going out, and little came in, consequently it was decided to close until conditions could be re-adjusted. The checking account was very light at the time the bank closed, something like $20,000. There were 171 depositors with an average checking account of less than $5.00, Mr. Walton stated. Since the bank closed many of the stockholders have asked Mr. Walton if $100 each from them would be of any assistance in re-opening the institution and he states that an attempt will probably be made at the annual meeting to raise enough money so the affairs of the institution may be carried on. Mr. Walton stated that since closing the bank, he has been figuring up the bills receivable and finds there is over $300,000 of this kind of paper. "Our bills are considered good, only we cannot realize on them at this time," he said. The Trust Co. has an equal amount of assets. The Trust Co. has thirty houses all bringing in rent and will keep on doing business just the same." The following statement was given out by Mr. Ebbert: "The closing of the First Farmers Bank of Minot was due to the simple

6. January 6, 1921 The Ward County Independent Minot, ND
Article from The Ward County Independent, January 6, 1921

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The annual meeting of the stockholders of the Savings Loan and Trust Co. was held at the hall in the Farmers store building on the afternoon of Tuesday, Jan. 4, and the question of re-opening the First Farmers Bank of Minot and the First Security Bank of Carpio, closed voluntarily on Dec. 27, for lack of sufficient cash reserve, was taken up. The meeting was at tended by fully 200 shareholders and after the matter had been thoroly discussed by G. A. Ebert, general manager, and Anthony Walton, president of the Savings Loan and Trust Co., the shareholders were unanimously in favor of proceeding with the re-opening of the two banks and pledged their combined resources, if necessary, in order that the institutions may be reopened. An Independent representative who called at the bank the following day and interviewed Messrs. Walton and Ebert, was informed by those gentle> men that they were very hopeful of reopening the two banks about January 15. At Tuesday's meeting, the shareholders pledged $10,000, raising more than half of that amount that day. Committees were appointed to work in the various townships in Northwestern North Dakota and assistance is even forthcoming from sections of eastern North Dakota. Among some of the items offered Tuesday's meetings was a $600 hail insurance warrant, railroad pay checks, Liberty Loan bonds, Thrift Stamps, and cash running in amounts

7. April 20, 1921 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, April 20, 1921

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NAMED RECEIVER OF SECOND BANK Minot, N.ID., April 19.-G. R. Van Sickle, appointed receiver for the First Farmers' Bank of Minot two weeks ago, today was notified by Bank Examiner O. E. Lofthus that he has been appointed receiver for the First Security Bank of Carpio. The Carpio institution: is owned by the Savings Loan &Trust Co. of Minot which also owns the First Farmers' Bank.

8. April 21, 1921 The Ward County Independent Minot, ND
Article from The Ward County Independent, April 21, 1921

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NOTICE TO CREDITORS In the matter of the insolvency of. The First Security Bank of Carpio, Carpio, N. Dak: To the creditors of the First Security Bank of Carpio: Notice is hereby given to the. creditors of the above named insolvent bank that the time for presenting claims against said bank will expire on October 22nd, 1921, and you are hereby notified that any claim against said insolvent bank must be filed with the Receiver before that date. Dated at Minot, North Dakota, April 22, 1921. G. R. VAN SICKLE, 4/21-2t Receiver.

9. April 21, 1921 The Ward County Independent Minot, ND
Article from The Ward County Independent, April 21, 1921

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G. R. Van Sickle Receiver of Security Bank of Carpio G. R. Van Sickle, who was appointed receiver of the First Farmers Bank of Minot recently, returned from Bismarck Saturday night where he conferred with the state banking department. Mr. Van Sickle has been appointed receiver of the First Security Bank of Carpio, a bank allied with the First Farmers Bank of Minot, which closed at about the same time as the Minot institution closed. Mr. Van Sickle found the roads ideal for motoring, making the return trip in 4 1/2 hours.

10. April 28, 1921 The Ward County Independent Minot, ND
Article from The Ward County Independent, April 28, 1921

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NOTICE TO CREDITORS In the matter of the insolvency of The First Security Bank of Carpio, Carpio, N. Dak: To the creditors of the First Security Bank of Carpio: Notice is hereby given to the creditors of the above named Insolvent bank that the time for presenting claims against said bank will expire on October 22nd, 1921, and you are hereby notified that any claim against said insolvent bank must be filed with the Receiver before that date. Dated at Minot, North Dakota, April 22. 1921. G. R. VAN SICKLE 4/21-2t Receiver.

11. August 11, 1921 The Ward County Independent Minot, ND
Article from The Ward County Independent, August 11, 1921

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Motion carried. Upon motion duly seconded the board adjourned at 12 o'clock to meet again at 2 P. M. Afternoon- Session The Board met at 2 P. M., as per adjournment with the following members present: Commissioners Toftner, Spicher, Haldi and Krantz. Com. Krantz in the chair and Com. Vandenoever absent. Moved by Com. Haldi seconded by Com. Spicher that the board adjourn as a board of equalization to meet at a future date, for the reason that the books are not all ready, and meet as county commissioners. Motion carried. July 27th, 1921 The Board of Equalization met as per adjournment, at 2 o'clock P. M., July 27th, with Commissioners Vandenoever, Toftner, Haldi and Krantz present. Com. Spicher absent and Com. Krantz in the chair. Moved by Com. Vandenoever, seconded by Com. Toftner that the county auditor be instructed to place on the assessment rolls for the year 1921, Clothing, Diamonds, Jewelry, Books, Firearms, Bicycles and other personal belongings in the amount of $60,802, which escaped taxation for the year 1920 in the city of Minot, and that such assessment be charged on the tax lists for 1921, against the parties as shown by the escaped taxation records in the office of the county auditor. Motion carried. Moved by Com. Vandenoever seconded by Com. Haldi that the following schedule be used in equalizing bank stock in the various banks of Ward county, to be in accordance with the tentative assessment as recommended by the State Tax Commissioner: Location and Name Assessment Aurelia-State Bank of Aurelia $ 11,000.00 Berthold-State Bank of Berthold 15,515.70 Berthold-Bank of Berthold_ 12,086.80 Burlington-American State Bank 42,457.81 Burlington-First State Bank 8,000.00 Carpio-First National Bank 26,273.96 Carpio-First Security Bank (in hands of receiver) Des Lacs-FarmersState Bank 5,800.00 Des Lacs-State Bank of Des Lacs 15,217.77 Donnybrook Donnybrook State Bank( in hands of receiver.) Douglas-Citizens State Bank 9,290.83 Douglas-Douglas State Bank 10,141.76

12. January 10, 1922 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, January 10, 1922

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NEW PLAN FOR RECEIVERSHIPS SAVES MONEY Twenty-five Per Cent Saving in Salaries Has Already Been Accomplished. Bismarck, N. D., Jan. 10.-Reduction of 25 per cent in the salaries paid receivers of closed banks in North Dakota already has been accomplished through consolidation of receiverships, it is said. With the announcement by the banking board of the appointment of three more receivers for groups of banks, there remains but two or three more groups in the state for which receivers will be named under the consolidated plan. The consolidation has not been carried to its full extent because of the fact that some receivers obtained confirmation of their appointments try courts and have refused to resign. The question of whether the court or state examiner, with approval of the state banking board, shall have power to name receivers will be settled through an appeal of a Dickinson case to the supreme court. W. E. Burgett, of Flaxton, president of the Citizens State bank of that city, has been named receiver for closed banks at Greene, Tolley, Fortuna. Columbus, Loraine and for the Security State of Mohall. G. R. Van Sickle, of Minot. has been appointed receiver for the Williston State bank of Williston. He also is receiver for the First Farmers bank of Minot and the First Security of Carpio. J. W. Lee, of Rhame, has been named receiver for closed banks at Haynes, Marmarth and for the First State bank of Amidon. He has been receiver for the Farmers State of Rhame and continues to act as receiver for that institution.

13. January 26, 1922 The Ward County Independent Minot, ND
Article from The Ward County Independent, January 26, 1922

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be mainained in very good shape. Bids are to be opened on Feb. 6. Depositors Receive 40% Dividend On Closed Carpio Bank G.R. Van Sickle, who has been acting as receiver for the First Farm-, ers Bank of Minot and the First Security Bank of Carpio, has succeeded in declaring a dividend of 40% for the depositors of the latter institution. He reports that the affairs of the Carpio bank are not in bad condition and he believes that with a little careful work, that bank never would have needed to close. Mr. Van Sickle was recently made receiver for the Williston State Bank and is now having the records of that institution forwarded to Minot, so that the work of closing up the affairs of the three banks can be done most economically.

14. August 24, 1922 The Ward County Independent Minot, ND
Article from The Ward County Independent, August 24, 1922

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One year old, $12.00; one year old and under two, $20.00; two years old and under three, $30.00; three years old and over, $45.00. Stallion, O. K. Item 9, Cattle Under one year old, $5.00; one year old and over two, $10.00; two years old and under three, $16.00; cows, $25.00; bulls, $30.00. On Items 15, 16, 17 and 18, the following increase or decrease be made: Minot City: Item 15, O. K.; Item 16, Plus 43%; Item 18, Plus 23%. Kenmare City, Item 15, O. K.; Item 16, O. K.; Item 17, Plus 20%; Item 18, O. K. Berthold City, Item 15, Plus 6%; Item 16, O. K.; Item 17, O. K. Carpio Village: Item 15, Plus 56%; Item 16, Plus 70%; Item 17, O. K.; Item 18, O. K. Donnybrook Village: Item 15, O. K.; Item 16, Minus 11%; Item 17, O. K.; Item 18, O. K. Des Laos Village, Item 15, Plus 30%; Item 16, Plus 51%; Item 17, O. K. Douglas Village: Item 15, Minus 20%; Item 16, Minus 20%; Item 17, O. K. Makoti Village: Item 15, Plus 38%; Item 16, O. K.; Item 17, O. K. Ryder Village: Item 15, O. K.; Item 16, Minus 26%; Item 17, O. K.; Item 18, O. K. Sawyer Village: Item 15, O. K.; Item 16, O. K.; Item 17, O. K.; Item 18, C. K. Motion carried. Moved by Com. Spicher, seconded by Com. Haldi, that the following schedule be used in equalizing bank stock in the various banks of Ward County to be in accordance with the tentative assessment as recommended by the State Tax Commisison: Assessment Name of Bank, Location $ 2,500 State Bank of Aurelia, Aurelia 8,437 Bank of Berthold, Berthold State Bank of Berthold, Berthold 5,754 American State Bank, Burlington 18,717 4,180 First State Bank, Burlington 13.836 First National Bank, Carpio First Security Bank, Carpio (In hands of receiver) Farmers State Bank, Des Lacs 3.379 State Bank of Des Lacs, Des Lacs 5,732 Donnybrook State Bank, Donnybrook (In hands of receiver) Peoples' State Bank, Donnybrook 2,379 Citizens State Bank, Douglas 4,836 Douglas State- Bank, Douglas Foxholm State Bank, Foxholm 10,204 3,196 Hartland State Bank, Hartland Farmers & Merchants State Bank, Kenmare (In hands of receiver) First National Bank, Kenmare 17.103 Kenmare National Bank, Kenmare 15,654 2,342 First State Bank, Lone Tree The First National Bank, Makoti 13,654 Reservation State Bank, Makoti Citizens Bank of Minot, Minot 11,000 First Farmers Bank, Minot (In hands of receiver) First International Bank, Minot_ 11,829 Scandinavian American Bank, Minot 5,591 The Second National Bank, Minot 59,937 The Union National Bank, Minot 24,050 Farmers & Merchants State Bank, Niobe 8,215 The First National Bank, Ryder 20,955 First State Bank, Ryder 8,810 First State Bank, Sawyer 10,156 Sawyer State Bank, Sawyer (In hands of receiver) First State Bank, Surrey 4,016 Motion carried. At 3 o'clock it was moved by. Com. Haldi, seconded by Com. Toftner that we adjourn as a Board of Equalization and meet as a Board of County Commissioners. Motion carried. August 3, 1922 The Board met at 2 P. M., as per adjournment, as a Board of Equalization, with the following members present: Commissioners Toftner, Spicher, Haldi and Krantz. Com. Krantz in the chair and Com. Vandenoever absent. Moved by Com. Spicher, seconded by Com. Haldi that the auditor be instructed to reduce the assessed valuation of the Standard Oil Co., in the City of Kenmare, to $2,775, as figures given by the City Assessor. Motion carried. Moved by Com. Spicher, seconded by

15. May 22, 1923 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, May 22, 1923

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# LEAGUE NOTE # SUIT SUBJECT Minot, N. D., May 22.- Depositions of the testimony of Grant S. Youmans, formerly of Minot, where he was engaged in business, in an action brought by G. R. Van Sickle as receiver of the First Security bank of Carpio against Ed. Kloster, Lisbon, N. D., farmer, were taken by Attorney B. H. Bradford of Minot, representing the plaintiff, who has just returned from Minneapolis. The lawsuit has been brought to collect on a $102 note, given by Kloster originally to the Publisher's National Service bureau, and later transferred by the bureau to the Carpio bank as collateral on a loan. A decision in this case will similarly affect about 40 other cases, it is said where the defendants in each instance allege that they have received no consideration for the notes which they made. Kloster, in his answer to the plaintiff's complaint, alleges that the promoters of the bureau agreed to establish a Nonpartisan league paper at Lisbon, and that the note was to be used in the financing of the institution. The paper was never established, it is contended, and consequently Kloster claims that there was a lack of consideration. The Carpio bank receiver asserts that the institution took the note in good faith, and that therefore the plaintiff should be given judgment. Much in the case hinges on whether W. W. Liggett of the service bureau had the authority to negotiate the paper on which the bank is now trying to collect.