12134. First National Bank (Casselton, ND)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: national
Bank ID: 2792
Charter Number: 2792
Start Date: December 6, 1915
Location: Casselton, North Dakota (46.901, -97.211)

Metadata

Model: gpt-5-mini
Short Digest: 60e699dc

Response Measures

None

Description

Bank closed Dec 6, 1915 due to alleged embezzlement/falsification by its president and cashier; federal examiner/receiver took charge. Directors reorganized and reopened the bank March 15, 1916, pledging funds and promising dollar-for-dollar payment to creditors.

Events (2)

1. December 6, 1915 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Closed after alleged embezzlement and falsification of accounts by president R. C. Kittel and cashier W. F. Kittel; federal examiner/receiver took charge.
Newspaper Excerpt: the First National bank at Casselton, which closed its doors Dec. 6, 1915, due to the alleged embezzlement of funds by R. C. Kittel, former president, and W. F. Kittel, cashier
Source: newspapers

2. March 15, 1916 Reopening

Newspaper Excerpt: First National bank at Casselton ... re-opened for business yesterday morning ... creditors of the institution would be paid dollar for dollar.
Source: newspapers

Newspaper Articles (12)

1. December 16, 1915 The Weekly Times-Record Valley City, ND

Article from The Weekly Times-Record, December 16, 1915

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Kettel and W. F. Kettel, ex-president and cashier respectively of the closed First National bank of Casselton to trial on the charges that have been preferred against them by the United States at the term of the federal court which will open here on Jan. 4. Col. M. A. Hildreth, United States district attorney, ,returned from the court session at Grand Forks recently, and when asked about the Casseiton case said that ne had no comment to make on the proposition other than that there wou"d be a term of court here beginning Jan. 4. Other than this Colonel Hildreth refused to comment. "I am like Poe's raven," said Colonel Hildreth, "I will say this and nothing more. There will be a term of the United States district court beginning Jan. 4." It is believed from this that the two Casselton bankers will be given a hearing on the charges of embezzlement and falsification af accounts on which they waived preliminary hearing before United States Commissioner Cupler and were bound over in the sums of $10,000 and $5,000 respectively. There have been many new develop ments made public in the affairs of the Casselton bank. Examiner C. H. Anheier is still on the job at Cassel. ton. There are indications that temporary receiver will be appointed by the comptroller of the currency to take charge of the affairs of the bank until it is known whether it will be reorganized or not. It is stated that reorganization will be effected at the earliest time possible.

2. February 15, 1916 The Fargo Forum and Daily Republican Fargo, ND

Article from The Fargo Forum and Daily Republican, February 15, 1916

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Now Seems Certain Casselton Bank will be Reopened and the Shortage Made Good It now seems absolutely certain that the First National bank of Casselton will be reorganized. At a meeting of the directors of the closed institution, held yesterday afternoon in Casselton, the directors agreed to reopen the bank and to make up the shortage that is necessary in order to take the bank out of the hands of the federal examiner as receiver. Another meeting of the directors will be held within the next few days and it will probably be at this time that a date will be set for the opening of the institution. About $175,000 will have to be advanced in order to reorganize, this covering the shortage and slow paper that is being carried by the bank. At the meeting yesterday the directors were unanimous for the making up of this deficit and the opening of the bank at the earliest possible time and practically all that has to be done now is to put up the money that is necessary to take the institution out of the hands of the federal examiner.

3. March 16, 1916 The Fargo Forum and Daily Republican Fargo, ND

Article from The Fargo Forum and Daily Republican, March 16, 1916

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Deposits Growing in Casselton's Reopened First National Bank The First National bank of Cassellooked as though it might be lost to the community, and would probably ton is again doing business, having have been at least partially lost had been reorganized with the best of not the directors of the institution backing, and is now paying 100 cents come to its rescue. on the dollar to its depositors. Deposits Grow. Backed by some of the strongest This afternoon National Bank Exfinancial men of the state, who came aminer C. H. Anheier, who is on the to the rescue of the institution, which ground until the institution gets fairly was closed on December 6, last, and started on its work, stated that the who have put in $25,000 each with the bank opened this morning and was doexception of one, who put up $30,000, the reorganized institution is now on ing a good business. "The business is as solid a foundation as any bank in running along as though nothing had the state of its size. happened," said Mr. Anheier, "and there is more money coming in than The reorganization of the First National bank of Casselton means the going out." keeping of a lot of money in that

4. March 16, 1916 The Hope Pioneer Hope, ND

Article from The Hope Pioneer, March 16, 1916

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N. D. News Important Doings of Past Few Days Throughout the State. Edited and Arranged for Our Readers. Fargo.-It's a crime to get drunk in Fargo. The city commission pass ed an order defining drunkenness as a misdemeanor. Fargo.-Great political interest is at tached to the two-day gathering of far mers interested in the Nonpartisan league which will be held in Fargo March 31 and April 1. Minot.- August A. Olin, a farmer working in a straw pile was suffocated when a portion of the stack toppled over on him. Farm laborers found him dead after fifteen minutes' rescue work. Oakes-It costs $37.50 for failing to commit suicide in Dickey county That fee, in the form of a fine in dis trict court, was assessed against Charles Shortall, who was found guilty of attempted suicide. Anamoose.-George Dockter, 7 years old, was burned to death and his 9-year-old brother was saved from a similar death by Mrs. Docktor, who threw the boy, with his clothes afire, into a water tank near their home. Fargo.-Frederick C. Howe, United States commissioner of imigration at Ellis island, New York, will address the graduating class of the North Da. kota agricultural college at the short course commencement March 19 and 20. Bismarck.-An organization has been formed under the name of Taxpayers' Protective association, composed of those interested in combating the effort being made to remove the state capitol from Bismarck to New Rockford. Fargo.-Merrit Kimball, a Fargo high school graduate who served with the Canadian troops in France, has been made a commissioned officer, according to word received by his father, Porter Kimball, of Luverne, this state. Fargo.-City Commissioner Alex Stern has been elected president and a director of the Dakota Trust Company of Fargo, to fill the vacancy created by the death of his brother, Max Stern, reputed one of Fargo's wealthiest citizens. Bottineau.-The gentle art of killing gophers is being taught to Bottineau county farmers by A. J. Henderson and J. M. !umphreys, agents in this county of the state experiment station and the United States Department of agriculture. Fargo.-An increase from $100,000 to $500,000 in the capital stock of the Equity Co-operative exchange of St. Paul, is to be authorized at a special meeting of the stockholders called for May 15. Official notification of the meeting has just been issued. Fargo.-J. H. Worst, former president of the State Agricultural college, has announced acceptance of the post of editor of the North Dakota Farmer, published at Lisbon, N. D. It formerly was edited by E. F. Ladd, new pesident of the Agricultural college. Fargo.-Bankers in small towns or suburban districts should place matches, a candle and a strong screw-driver, in the vaults, according to the secretary of the North Dakota Bankers' association in a pamphlet just issued to bankers giving instructions as to what to do in case of a hold-up. Williston.-A pontoon bridge across the Missouri river, making a large territory south of Williston convenient to the city and opening this territory to local merchants, coupled with an active building campaign and the installation of a "white way" lighting system, are features of the development promised Williston this summer. Hankinson.-Leaping from an upper window of his home near here, gained considerable headway, H. N. Stern saved his own life and the lives of his father and mother. Stern broke a downstairs window and wakened his paients, who escaped through the window. All members of the family suffered from exposure. The house was destroyed. Fargo.-Automobile highways were to receive first place in Fargo at the meetings of the Red Trail and the Jefferson Highway Associations The Jefferson highway meeting has been called to agitate the removal of that road from the present route through Central Minnesota to the Red river valley. This road runs from the Gulf of Mexico to Winnipeg. Fargo.-It has been announced officially here that the First National bank of Casselton will be re-opened

5. March 17, 1916 Grand Forks Daily Herald Grand Forks, ND

Article from Grand Forks Daily Herald, March 17, 1916

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BANK IS GIVEN ALL CONFIDENCE Fargo, N. D., March 7.--That the people of Casselton are entirely confident of the ability of the new organization in charge of the re-opened First National bank, closed several months ago through alleged defalcations totalling over $100,000, is evidenced by the fact that the deposits made since the bank re-opened, have been in excess of the sum of money paid out. Approximately $300,000 was restored to the people of Casselton by the re-opening of the bank. made possible through the fact that six directors personally pledged a. total of $155,000 to the institution to keep it in operation. Under the reorganization of the bank: Matt Runck is president.

6. March 23, 1916 The Weekly Times-Record Valley City, ND

Article from The Weekly Times-Record, March 23, 1916

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First National Bank at Casselton Is Reopened Fargo, March 15.-The First National bank at Casselton, which closed its doors Dec. 6, 1915, due to the alleged embezzlement of funds by R. C. Kittel, former president, and W. F. Kittel, cashier, and which was one of the most sensational bank failures in the northwest, re-opened for business yesterday morning with the announcement that the creditors of the institution would be paid dollar for dollar. At a meeting of the directors last night Math Runch was elected president; M. G. Straus, first vice president; N. J. Ford, second vice president, and J. A. Krich, cashier. The board of directors is composed of O. F. Gray, F. G. Johnson, John Dittner, Math Runck, M. G. Straus, N. J. Ford and J. A. Krick. The capitalization remains at $50,000, the same as prior to the closing. The reorganization of the institution was affected by each of the directors putting up $25,000 with the exception of one, who put in $30,000 to cover the alleged shortage and slow paper which resulted in the indictment of the Kittels by a federal grand jury on complaints filed by United States District Attorney Hildreth before United States Commissioner Cuyler, charging embezzlement of funds and the falsification of accounts. At present R. C. Kittel is at liberty on $10,000 bail bonds, and W. F. Kittel on $5,000 bonds. According to a report from Casselton last night business men and farmers were rejoicing yesterday when the institution opened its doors. The new officers are well known in banking circles of the state. Since the closing of the institution, National Bank Examiner Anheier of Fargo, has been adjusting the affairs of the bank with a view of bringing about a complete reorganization. The announcement of the re-opening was made by the bank examiner yesterday morning.

7. March 23, 1916 The Ward County Independent Minot, ND

Article from The Ward County Independent, March 23, 1916

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An enthusiastic baseball meeting attended by players and fans was held at the State Bank of Hannah. It was decided to hire a good pitcher and perhaps an infielder. A number of new players have come to town and prospects for a good, fast team are bright. Saturday afternoon the current was turned on for the electric lights in Plaza. The plant is one of the latest type, consisting of two dynamos and two gasoline engines, a ten and a twenty-five horse power, and switchboard. The current furnished is 110 volts and makes a very bright light. It can also be used to run motors, electric irons, etc. Great flocks of prairie chickens are traveling into the Turtle mountains woods from many miles around. The deep snow is the cause, having covered everything in the open country in the way of food. They find food in the woods, such as the bark of trees, buds, dead worms, and a thousand and one things they can pick up. Farmers complain that on the open prairie they are literally eating up the strawstacks. The First National Bank of Casselton, which closed its doors on December 6, 1915, on account of alleged embezzlement of funds by R. C. Kittel, former cashier, reopened for business March 15, with the following officers: President Marth Runck; first vice president, M. G. Straus; second vice president, N. J. Ford, and cashier, J. A. Krick. Board of directors, O. F. Gray, John Dittmore and F. G. Johnson, of Casselton. The bank will liquidate creditor claims dollar for dollar, so it is said. Albert Ashley was arrested for the theft of a 45 bushel load of wheat from Chas. Green, who resides six miles north of Alexander. In the preliminary examination before Justice of the Peace Robert Hinman, he admitted his guilt and will be taken before District Judge Frank Fisk at Williston, to enter his plea and receive sentence. Ashley had been stopping with Chas. Green this winter, assisting him with the chores and hauling grain. The latter part of February Mr. and Mrs. Green went to Grand Forks to attend the Grain Dealers con-

8. March 31, 1916 Bismarck Daily Tribune Bismarck, ND

Article from Bismarck Daily Tribune, March 31, 1916

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rier at Alexander, Heil and St. Joseph, N. D. * * * Presidential postmasters have been appointed for North Dakota as follows: Minnie Clabaugh, Fairmount, in place of Charles Leathart, and Francis X. Mueller, Schefield. A civil service examination will be held on April 21, for postmasters at Basto, Keene, Roseglen and Walum, N. D. * * * The comptroller of the currency has received an application to organize "The Farmers National Bank of Portland, N. D.," with a capital of $25,000. *** During the month of February, 1916, the secretary of the interior approved fourteen orders of designation, the effect being to increase by more than 2,000,000 acres the area of lands classified as nonirrigable in character and therefore enterable by homesteaders in tracts of 320 acres each instead of in ordinary homesteads of 160 acres each. The states affected by this action are Arizon, California, Colorado, Kansas, Montana, North Dakota, Oregon, 'South Dakota and Wyoming. In North Dakota more than 250,000 acres of land in 17 counties were classified as nonirrigable. General areas were designated in the following counties: Morton, 100,000 acres; Adams, 40,000 acres; Ward, 34,000 acres; Hettinger, 20,000 acres: Oliver, 9,000 acres. * * * The First National Bank of Casselton, N. D., capital $50,000, formerly in the hands of a receiver, has been restored to solvency and was on March 15, 1916, permitted to resume business. * * * Wallace W. O'Hara has appointed postmaster at Neche, N. D., in place of Charles N. Murphy.

9. September 2, 1916 The Fargo Forum and Daily Republican Fargo, ND

Article from The Fargo Forum and Daily Republican, September 2, 1916

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Notice of Mortgage Sale by Advertisement. Notice is hereby given, that that certain mortgage, executed and delivered by Mark Norton and Frances E. Norton, husband and wife, mortgagors, to C. H. Anheier, as receiver of the First National Bank of Casselton, North Dakota, mortgagee, dated the first day of February, A. D. nineteen hundred and sixteen, and filed for record in the office of the Register of Deeds of the County of Cass, and State of North Dakota, on the first day of March, A. D. 1916, and recorded in Book 144 of Mortgages, at page 66, and assigned by said mortgagee by an instrument in writing to The First National Bank of Casselton. North Dakota, dated the 22nd day of April, A. D. 1916, and filed for record in said office of the Register of Deeds on the 10th day of August, 1916, and recorded in Book 142 of Mortgages, on page 228, will be foreclosed by a sale of the premises in such mortgage and hereinafter described, at the front door of the Court House in the City of Fargo, in the County of Cass, and State of North Dakota, at the hour of two o'clock p. m., on the 30th day of September, 1916, to satisfy the amount due upon said mortgage on the day of sale. The premises described in said mortgage and which will be sold to satisfy the same, are those certain premises situated in the County of Cass, and State of North Dakota, and described as follows, to-wit: The North Half of Section Twentyeight (28) in Township One Hundred Forty-two (142) North, Range Fiftytwo (52), West of the Fifth Principal Meridian, containing Three Hundred Twenty Acres (320A) more or less according to the United States Government Survey thereof. There will be due on such mortgage at the date of sale the sum of Five Thousand Eight Hundred Thirty-eigat and 65-100 ($5,838.65) Dollars. FIRST NATIONAL BANK OF CASSELTON, N. D., Assignee of Mortgagee. Lawrence & Murphy, attorneys for assignee, Fargo, North Dakota, Fargo National Bank Building. (Aug, 19-26, Sept. 2-9-16-23, 1916.)

10. October 18, 1916 The Fargo Forum and Daily Republican Fargo, ND

Article from The Fargo Forum and Daily Republican, October 18, 1916

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TWO BIG CASES ON BOARDS Jury Term of Federal Court Opens Tomorrow-Morris to Preside IMPROVEMENT AFFAIRS UP Will Be Aired in Prosecution of Former Officials of the Company A jury term of the U. S. district court will be opened in Fargo tomorrow, two of the most important cases that have been in the court for some time heading the calendar. These are the cases known as the North Dakota Improvement case and the Kittel cases from Casselton. The North Dakota Improvement Co.'s case will be the first one called for trial and the selection of a jury tothis hearing will be started morrow. for This case is the outgrowth Im- of the failure of the North Dakota the provement Co., which went into later hands of a receiver and was reorganized as the Western Realty The North Dakota Improvement Co. owned a large amount of properties Co. in Fargo, Valley City, Grand Forks and Devils Lake. As a result of the failure of the action was brought against W. M. company A. Baldwin, E. A. Wilson and H. Farmer as officers of the company, which they were charged with fraudulent in methods in the conduct of business and of having conducted the a the portion of this business through mails, The second case scheduled for trial the before the federal jury here is against R. C. and F. W. Kittel, the formerly case president and cashier of both First National bank of Casselton, whom are charged with the misappropriation of of funds, embezzlement the and false report as officers of bank. This case has been the outgrowth of closing of the doors of the Casthe selton bank for a short time. This bank failed to open on the morning in- of December 6, 1915 as a result of an the of its condition and on of the same day the arrested and vestigation afternoon Kittel were brought this Messrs. city. before a U. S. commissioner in They gave bonds and were indicted before a grand jury called shortly afterward to consider this and other then demanding attention. that these cases considerable cases will It is occupy expected time two in the in both there will a vast of evidence to present are other jury. amount court There as criminal be and cases to some the to be brought up at the term civil actions are also on the calendar. M. A. Hildreth, U. S. district attorney, and his assistant, Judge John for Carmody, have been very busy weeks getting ready for this many term of the court. Today their office is a very busy place arranging the final details before beginning the $ prosecution of the several cases scheduled for trial.

11. November 14, 1916 The Fargo Forum and Daily Republican Fargo, ND

Article from The Fargo Forum and Daily Republican, November 14, 1916

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Tell Seven Witnesses of Business Methods In Casselton Bank Further attempts by the government 000 turned over to the bank by the Frank Lynch Co. for investment. to show up the alleged inconsistency in the business methods of R. C. and Representatives of corresponding banks yesterday testified that the First W. F. Kittel, both of Casselton, chargNational bank of Casselton did not ed with embezzlement and falsifying have amounts to its credit as shown of accounts in connection with the affairs of the First National bank of by the books in that institution. J. L. Wire, attorney for the City that city, were continued in federal National bank of Chicago, testified court before Judge C. F. Amidon this that the First National bank of Casselmorning. Seven witnesses, all of whom testiton had no credits with his bank, while the bank's books showed $25,000. His fied to their business relations with the First National bank, and the testimony was corroborated by George L. Weiss of the same institution. Northern Trading company through F. W. Gann, cashier of the First Nathe Kittel brothers, were put on the tional bank at Watertown, Wis., testistand. The eighth, R. T. Torrence, fied that the Casselton bank had no bookkeeper, for the Frank Lynch Co. credit with his institution, and had not at Casselton, was put on the stand shortly before the adjournment for had for nearly six years, though the luncheon, his examination to be conbank's books showed a credit of $6,000. tinued this afternoon. Others to testify were C. O. SimT. J. Cummings of Towner, J. G. mons, cashier of the Grandin State Robertson of Rushford, Minn., Dr. W. P. Baldwin of Casselton, M. A. Grombank, O. J. Bagley, receiver for the mesch of Casselton, Gustav Schur of Towner State bank, T. J, Tonner, cashier of the same bank. Their testiArthur, Otto Werner of Davenport, mony also related to credits. and R. D. McKonn of Atlanta, III., were those to testify, their testimony R. S. Wilson of Boston, Mass., was on the stand when court adjourned for relating to the handling of farm and real estate loans, and renewals. the afternoon. His testimony related to loans he had made in this state, Through Mr. Torrence's testimony an attempt is being made to trace $15,and handled through the Kittels.

12. November 16, 1916 The Weekly Times-Record Valley City, ND

Article from The Weekly Times-Record, November 16, 1916

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Damaging Testimony Features Kittel Trial Fargo, Nov. 14.-Several witnesses from points as far east as Boston, Mass., were on the stand yesterday in the trial of R. C. and W. F. Kittel, president and cashier respectively of the First National bank of Casselton, which closed its doors Dec. 6, 1915. They were called by the prosecution, most of them for the purpose or showing the standing of accounts of the defunct institution with various banks. L. E. Correll, who had been on the stand since Friday noon, concluded yesterday morning. His testimony consisted mainly of identifying records and entries in the books of the Casselton bank of which he was cashier. J. L. Wire, attorney for the City National bank of Chicago, testified that the bank which he represented had no credit for the First National bank of Casselton at the time the books of the defunct institution showed that it had deposits totalling $25,000 in the City National bank of Chicago. Geo. L. Wiess, also of the City National bank, likewise testified. Geo. L. Ratt, bookkeeper for the Drexell State bank of Chicago, testified to the same effect. C. C. Boyen, of the First Security bank of Minneapolis, similarly testified the closed bank did not have credits at his institution as its books showed. F. W. Gann, cashier of the First National bank of Watertown, Wis., declared the First National bank of Casselton had had no account at his bank for six years when, on Aug. 1; 1914, it is charged, defendants had made a sworn statement that their bank had $6,000 due it from the Wisconsin institution. other witnesses called by the prosecution yesterday were C. O. Simmons, cashier of the State Bank of Grandin; O. J. Bagley, receiver for the Towner State bank; T. J. Tonner, cashier of the same, all testifying to accounts carried for the Casselton institution. R. S. Wilson, of Baston, Mass., was on the stand when court adjourned. His testimony related to loans he had made in the state and handled by the defendants. Judge John Carmody, assistant district attorney, conducted the examination yesterday for the prosecution, District Attorney M. A. Hildreth not having entirely recovered from his indisposition of Saturday. He is able to be present in the court room, however.