Cogswell State Bank - Cogswell, ND

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: December 22, 1921
Location: Cogswell, North Dakota (46.107, -97.782)

Metadata

Model: gpt-5-mini
Short Digest: 2a8ed530

Response Measures

None

Description

Article reports the Cogswell State Bank closed on Dec. 22, 1921; a receiver (K. C. Nelson) was appointed and assets were sold. No mention of a depositor run — closure appears to be by banking board action and followed by receivership and asset sale; stockholders have sued to set aside the sale.

Events (3)

1. December 22, 1921 Receivership

Newspaper Excerpt: Suit to set aside sale of the assets of the closed Cogswell State Bank ... against the bank, K. C. Nelson as receiver, R. W. Craig, Gilbert Semingson as state examiner, members of the banking board and depositors guaranty fund commission.
Source: newspapers

2. December 22, 1921 Suspension

Cause: Government Action
Cause Details: Closed by the banking board / state examination leading to receivership and sale of assets.
Newspaper Excerpt: The Cogswell State Bank, Sargent county, closed Dec. 22, 1921.
Source: newspapers

3. January 24, 1923 Other

Newspaper Excerpt: Stockholders of Cogswell State Bank Begin Court Action Suit to set aside sale of the assets of the closed Cogswell State Bank has been inaugurated by J. H. Shannon ... The Cogswell State Bank, Sargent county, closed Dec. 22, 1921.
Source: newspapers

Newspaper Articles (1)

1. January 24, 1923 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, January 24, 1923

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Article Text

ASK SALE OF DEFUNCT BANK BE SET ASIDE Stockholders of Cogswell State Bank Begin Court Action Suit to set aside sale of the assets of the closed Cogswell Stat Bank has been inaugurated by J. H. Shannon, H. C. Hoffman, Geo. F. Vanderlaan, T. J. Bell and John M. Masengarb against the bank, K. C. Nelson as receiver, R. W. Craig, Gilbert Semingson as state examiner, members of the banking board and depositors guaranty fund commission. Issuing an order to defendants to show cause why the injunction should not issue, District Judge Frank P. Allen has set the case for hearing at Wahpeton on February 1. Papers were served here today. The plaintiffs ask that the sale of assets as made by the banking board and guaranty fund body be declared null and void, the defendants be enjoined from further carrying out the terms of the sale, and the defendants be required to turn over to a receiver appointed by the court all of the assets of the bank. The Cogswell State Bank, Sargent county, closed Dec. 22, 1921. The plaintiffs claim assets total $375,000, and that "said loans and discounts properly and carefully handled would be sufficient to pay depositors and creditors, not including stockholders, dollar for dollar and the bank was insolvent only in that it would not pay immediate demands." The suit set out that Ray Craig submitted a bid of $155,000 for the assets of the bank on the condition that "we assume bills payable and pay the guarantee fund commission the difference in certificates of deposit on new banks to be opened at those points (the bid including Crete bank.) the certificates payable in four and five years from date, to bear interest at the rate of 5 per cent" and second that the bid be accepted in one week and approved by attorneys. The bid was accepted, the suit says, after ll'cash and amounts due from banks, as well as stockholders. liability, was excluded. Craig and associates established the bank of Cogswell, it is set out, to handle the assets. The suit alleges that the assets, which were sold for $155,000 were worth $300,000.