12234. National Bank (Fargo, ND)

View Charter #4256 on SPMC

Bank Information

Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
4256
Charter Number
4256
Start Date
May 9, 1893
Location
Fargo, North Dakota (46.877, -96.790)

Metadata

Model
gpt-5-mini
Short Digest
63d88e80

Response Measures

None

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1893-06-06
Date receivership terminated
1895-09-16
OCC cause of failure
Fraud
Share of assets assessed as good
6.2%
Share of assets assessed as doubtful
92.8%
Share of assets assessed as worthless
1.0%

Description

The National Bank of North Dakota at Fargo was closed by the Comptroller/examiner on May 9, 1893 (a regulatory suspension), a receiver was appointed in June 1893, and stockholders voted to end the receivership and reorganize in July 1895. The articles do not describe a depositor run or heavy public withdrawals prior to the regulator closure; closure appears to be government action due to inability to realize securities and questionable management by E. A. Mears.

Events (7)
1. March 12, 1890 Chartered
Source
historical_nic
2. May 9, 1893 Suspension
Cause
Government Action
Cause Details
Closed by the National Bank Examiner under orders of the Comptroller of the Currency; cited inability to realize upon securities and problematic loan business under E. A. Mears.
Newspaper Excerpt
The National Bank of North Dakota ... was closed to-day by the National Bank Examiner, under orders from the Comptroller of Currency.
Source
newspapers
3. June 6, 1893 Receivership
Source
historical_nic
4. June 7, 1893 Receivership
Newspaper Excerpt
John D. Benton, of Fargo, has been appointed receiver of the failed National Bank of North Dakota, at Fargo, N. D.
Source
newspapers
5. June 23, 1893 Other
Newspaper Excerpt
JOHN D. BENTON has filed his bond for $50,000 as receiver for the National Bank of North Dakota, at Fargo, and assumed possession.
Source
newspapers
6. January 12, 1894 Other
Newspaper Excerpt
Comptoller Eckles has ordered Receiver Benton to pay a dividend of 40 per cent. to the creditors of the National bank of North Dakota at Fargo.
Source
newspapers
7. July 5, 1895 Reopening
Newspaper Excerpt
At a meeting of the stockholders of the National Bank of North Dakota, held in Receiver Beaton's office, it was voted to end the receivership and J. A. Hanway ... was elected agent to hold the assets while the reorganization is perfected.
Source
newspapers

Newspaper Articles (16)
1. May 30, 1893 The Record-Union Sacramento, CA
Article from The Record-Union, May 30, 1893

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BUSINESS SUSPENDED. Two Banks at Fargo, North Dakota, Closed. FARGO (N. D.), May 9.-The National Bank of North Dakota, of which E. A. Mears is President, was closed to-day by the National Bank Examiner, under orders from the Comptroller of Currency. The First National Bank of Lakota was also closed. The examiner will give out no statement of the assets or liabilities. Cashier Mears announces that the total indebtedness does not exceed $60,000, with assets of five times the amount. The bank officers state that the cause of the trouble is the large loan business and the fact that it is impossible at present to realize upon the securities. Individual deposits at the time of the last statement, May 4th, were only $3,243; demand certiticates, $4,452; time certificates, $14,229; national bank notes outstanding, $45,000; notes and bills rediscounted, $22,114, and bills payable, $16,000. At that time the bank only had as cash on hand $440 in legal tender notes and $49 in fractional currency. The statement was not published in any of the daily papers, but in the Weekly Republican, so few people saw it. Among the resources given were loans and discounts, $184,373; United States bonds, $30,000; stock and securities, $46,769; banking house and furniture, $5,451; real estate and mortgages owned, $34,999. The closing of the bank will have no effect upon the business of the city or county. It was merely a clearing house for a system of loan agencies. It had no depositors to speak of in this city or State, and what little money was there will undoubtedly be paid in full.

2. May 31, 1893 Rock Island Daily Argus Rock Island, IL
Article from Rock Island Daily Argus, May 31, 1893

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ABBREVIATED TELEGRAMS. Francis Bradley, of the well-known Chicago real estate firm of Baird & Bradley, is dead at his home in Evanston, Ill. He was 78 years old. William Henry, a brakeman; Frank Train, of Annapolis; William Mullainey, of Geneva, O.; John S. Layer, of Houtzdale, Pa,, and William Lock, of Newport, Ky., were killed and ten others badly hurt at Altoona, Pa., by the wreck of a circus train. Several lions and tigers got out and 'one of the wounded was bitten by a lion. Ex-Governor Fifer, of Iilinois, delivered the Memorial Day address at Peoria. Mrs. Crosby, who lives near Hazelhurst, Ga., shot a tramp dead who tried to outrage her. The diocesan convention of the Chicago Episcopal diocese is in session. Weaver, Getz & Co., the suspended Chicago coal firm, Assignee D. V. Purington believes, will be able to resume. He thinks also that there is an excellent prospect that the firm will pay 100 cents on the dollar. Henry Mansfield, one of the pioneers of Peoria, Ills., was found dead in his office. Obituary: At Winona, Minn., Philo P. Hubbell, aged 94. At West Bridgewater, Pa., Mrs. Jane Baumgardner. aged 97. Fred Berry, a 19-year-old Chicago boy, committed suicide at Lima, O. Colonel George M. Sternberg is to be surgeon general of the United States army, to succeed General Sutherland, retired. The venerable Journal of Commerce, at New York, has been sold to the proprietors of its younger rival, The Commercial Bulletin. Kansas bankers who have adopted the new rule of the Kansas City Clearing House association to govern charges for drafts and checks on out-of-town banks are now threatened with arrest under state law for going into a trust. The National Bank of North Dakota, at Fargo, and the First National bank, of Dakota, two institutions of the E. Ashley system, have been closed. Frank M. Dorsey, cashier of the First National bank of Ponca, Neb., which recently failed, has been indicted for falsifying the accounts of the bank. The Worley bank at Ellettsville, Ind.. has failed. The liabilities are $35,000 and the assets $50,000. Colonel J. Albert Mills, acculled of embezzling funds of the Victoria mills. of which he was agent, at Newburyport, Mass., and for whom warrants are issued, is believed to have gone to Canada. Oregon papers report the marriage of Miss Grace Penney to William Nickel.

3. May 31, 1893 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, May 31, 1893

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We observe that the National Bank of North Dakota, located at Fargo, and the First National Bank of Lakota, of Lakota, N. D., have both been closed by the Comptroller of the Currency. These banks were both run by E. A. Mears. For some years past Mears has sent circulars east giving a very roseate view of his institutions and soliciting investments. Mears seems to have been the Dwiggins of North Dakota. A lot of little bank were established by him in various parts of that state, Eastern men having been induced to take stock in them by the promise of 12 per cent interest. Since 1891, however, no dividend has been paid. None of these banks had over $30,000 or $40,000 on deposit, and the most of them not so much.

4. June 2, 1893 Bismarck Weekly Tribune Bismarck, ND
Article from Bismarck Weekly Tribune, June 2, 1893

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Article Text

MEARS IN LIMBO. The Fargo Banker, With a Financial System of His Own is Finally Run Down. By Order of the Comptroller of the Currency, Examiner Diamond Closes the Doors. Score of State Banks Depending On the Parent Likely to Follow Suit. Mears' Bank Goes Up. FARGO, May 29.-The National Bank of North Dakota was to-day closed by order of the comptroller of the currency, and is now in the hands of Bank Examiner Diamond. It was controlled by E. Ashley Mears, who manages a dozen other national and state banks in North Dakota. The institution never had the confidence of the people of the state, but drew its patronage from the east. Its failure will not affect Fargo institutions, the other banks of the city not having had any intercourse with the one which failed. The First National Bank of Lakota was also closed to day. This is another Mears bank. Examiner Diamond refuses to make known the assets and liabilities of the institution until the affairs of the network of banks are straightened. .Mears' methods have long been criticized in the state, and it is hinted he will lose nothing by the failure, eastern stockholders being the ones to suffer.

5. June 7, 1893 Evening Journal Wilmington, DE
Article from Evening Journal, June 7, 1893

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RECEIVER FOR FARGO BANK. John D. Benton, of Fargo, Appointed This Morning. WASHINGTON, June 7.-John D. Benton, of Fargo, has been appointed receiver of the failed National Bank of North Dakota, at Fargo, N. D.

6. June 7, 1893 Evening Star Washington, DC
Article from Evening Star, June 7, 1893

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Bank Receiver in Dakota. John D. Benton of Fargo has been appointed receiver of the failed National Bank of North Dakota at Fargo, N. D.

7. June 21, 1893 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, June 21, 1893

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# LOCAL BREVITIES. Weather report: Wednesday and Wednesday night occasional showers. Thursday fair. Dr. J. S. Johnson to-day received a telegram from Janesville. Wis., stating that his brother was not expected to live. He took the 10:30 a. m. train for the east. Auditor Runkel received to-day fifty-five contracts from the state department for those who purchased school lands last spring. The query in his mind is whether they ought to be recorded or not. Pipestone (Minn.) Daily Star, 17: Rev. Flynn, of Madison, and Rev. McNally, of Elkton. were the guests of Rev. F. P. Kervick last evening. Rev. McNally was here on business connected with the erection of his new Catholic church at Elkton. John E. Diamond was returning home from a month's work in North Dakota to-day. He had just closed the National Bank of North Dakota, one of E. Ashley Mears' crazy ventures. He reports Fargo in hard shape and much destitution among the poor and homeless. But with commendable pluck the business men of that city are now beginning rebuilding operations which will soon give work to many of the idle.

8. June 23, 1893 Bismarck Weekly Tribune Bismarck, ND
Article from Bismarck Weekly Tribune, June 23, 1893

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As a blood purifier, the most eminent physicians prescribe Ayer's Sarsaparilla. It is the most powerful combination of vegetable alteratives ever offered to the public. As a spring and family medicine, it may be freely used by old and young alike. THERE have been four escapes from Sing Sing within the past two months, and at latest reports prisoners were still busily getting away. Wauted A capable woman to cook, wash and keep house on a ranch. Wages, $20 per month. Address, A. B. Tribue Office. JOHN D. BENTON has filed his bond for $50,000 as receiver for the National Bank of North Dakota, at Fargo, and assumed possession.

9. November 15, 1893 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, November 15, 1893

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Mears Can Not Resume. W ASHINGTON, Nov, 15.-The fact that the citizens of Fargo, N. D., are about to petition Controller Eckels to allow that Napoleon of finance, E. Ashley Mears, to reopen the National Bank of North Dakota does not produce the shadow of relenting on the part of that official. He adheres rigidly to his previous and oft-expressed determination that E. Ashley Mears can not run a national bank at Fargo or anywhere else as long as James H. Eckels is controller of the currency.

10. November 16, 1893 The Sauk Centre Herald Sauk Centre, MN
Article from The Sauk Centre Herald, November 16, 1893

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Mears Can Not Resume. WASHINGTON, Nov. 15.-The fact that the citizens of Fargo, N. D., are about to petition Controller Eckels to allow that Napoleon of finance, E. Ashley Mears, to reopen the National Bank of North Dakota does not produce the shadow of relenting on the part of that official. He adheres rigidly to his previous and oft-expressed determination that E. Ashley Mears can not run a national bank at Fargo or anywhere else as long as James H. Eckels is controller of the currency.

11. November 25, 1893 The Washburn Leader Washburn, ND
Article from The Washburn Leader, November 25, 1893

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Mears Barred Out. Devils Lake News: The fact that the citizens of Fargo are about to petition Controller Eckels to allow that Napoleon of finance, E. Ashley Mears, to reopen the National Bank of North Dakota. does not produce the shadow of relenting on the part of that official. He adheres rigidly to his previous and oft-expressed determination that E. Ashley Mears cannot run a national bank at Fargo or anywhere else 80 long as James H. Eckles is controllor of the currency. Mr. Eckles said to the Pioneer Press correspondent at Washington, last week : "I have not yet received the petition which I understand has been circulated at Fargo,but I have received a letter from Mr. Mears. He asks me to revoke my former decisston and says that he is afraid that I have been prejudiced against him by ex.parte evidence. I replied that I was most decidedly prejudiced against his business methods and that my opinion was formed by the examination of letters, reports.and other papers which are a part of the official records of my office. No petition can change the facts which these documents present, and I shall not consent to the reopening of this bank if Mr. Mears is to be connected with it in any capacity."

12. January 12, 1894 Bismarck Weekly Tribune Bismarck, ND
Article from Bismarck Weekly Tribune, January 12, 1894

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insane asylum. Between 20 and 30 from that county are still in duress. W. A. Hamilton's four-year term as postmaster of Devils Lake, will expire February 14th, and there are said to be five candidates for the position. At Grafton, the Robertson 'Lumber company, announces that the coal trust is "bust." They sell the best hard coal at $9 per single ton, delivered. Comptoller Eckles has ordered Receiver Benton to pay a dividend of 40 per cent. to the creditors of the National bank of North Dakota at Fargo. Stockmen and ranchmen in the western part of the part are importing stag hounds with which they hope to clean out some of the numerous prairie wolves. Postmasters appointed: Golden Lake, Steele county, J. T. Kolden, vice W. H. Ullensaker, removed; Praha, Walsh county, Felix Ruzicka, vice W. Ruzicka, resigned. The mandamus suit brought by the Fargo Agricultural college board against the state auditor, to compel him to issue warrants for building expenses, has been dismissed. John Bridston, treasurer of Rolette county, has resigned, to engage in business at Grand Forks; The county commissioners appointed W. A Duncan to fill the vacancy. A physician says it is reported, and not exaggerated, that there are a thousand people sick in Grand Forks. It is likely that the water and sewerage have much to do with the epidemic. The authorities of the insane asylum have announced that they cannot receive any more patients at present, as the accommodations will not allow any increase in the present number of patients. Mrs. Hincly, the old lady who made a desperate attempt to suicide a few days ago at Grand Forks, made a second attempt but was again frustrated. She says she will yet take her life, however, at the first opportunity. Mrs. Hansbrough is dangerously ill in New York. A letter received from Senator Hansbrough states that his wife is in precarious condition. Physicians in attendance have notified the senator that her chances for recovery are doubtful. Samuel L. Copeland, the Moorhead bank robber, has pleaded guilty of robbery in the first degree. The penalty prescribed by law is imprisonment in the penitentiary for a term of not less than five years nor more than twenty years. Roxy Reber, a salcon proprieter at St. Paul, and formerly of North Dakota, gave away last week, 1,000 loaves of bread and 1,000 pounds of sausage to 400 unemployed workingmen, who were seeking work under the auspices of the citizens relief committee. The presence of the grand jury at this term of the district court at Jamestown, is causing considerable anxiety among some citizens there, whose absence at this time is noticeable. There are enjoying short holidays in Minneapolis in the neighborhood of Moorhead. Hon. N. G. Larimore, who has recently returned from St. Louis, reports times much harder than in North Dakota. It is his opinion that the people of this state are in much better circumstances and their prospects brighter than the people of any other section of the country. Attorney Charles A. Stanley has been appointed receiver of the Dawson State Bank, and will qualify at once and enter upon the discharge of the duties of the office. The bank affairs are much complicated, and the receiver has hard work in sight. The early west bound Great Northern freight met with a mishap just beyond the Grand Forks yard limits Saturday. By the breaking of a bolt under one of the cars, the car was thrown off the track and with several cars following, were piled up in a demoralized condition. Captain M. L. McCormack of Grand Forks, Hon. W. C. Leistekow, of Grafton, G. G. Beardsley, of McCanna, and E. A. Hendrikson, of Larimore, compose a party in St. Paul bound for the city of Mexico. They will spend a large part of the winter looking over the country and enjoying the agreeable change of climate. Gran d Forks papers say the office force of the North Dakota Milling as sociation has the grippe. Not all of the member are 80 inclined, but enough of them to make the fact apparent on looking into the office. Assistant Manager Holmes is among the unfortunate ones, Manager Turner still remaining insin

13. July 6, 1895 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, July 6, 1895

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ONE OF MEARS' BANKS. National Bank of North Dakota Reorganizing. Special to the Globe. FARGO, N. D., July 5.-At a meeting of the stockholders of the National Bank of North Dakota, held in Receiver Beaton's office, it was voted to end the receivership and J. A. Hanway, of New York city, was elected agent to hold the assets while the reorganization is perfected. This is one of the E. Ashley Mears concerns, and William B. Mears is mostly instrumental in the reorganization. The gentlemen from New York in the city representing the stockholders of the bank are J. A. Hanway, E. Plummer and George Kitman.

14. December 21, 1897 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, December 21, 1897

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Bank Shortage of $10,000. FARGO. N. D., Dec. 20.-The final report of J. A. Hanway, stockholders' agent for the National Bank of North Dakota, which was headquarters for the many institutions run in this State by Banker E. Ashley Mears, which has been under consideration before Judge Amidon, of the United States Court, was to-day declared by the court to show a shortage of $10,000. Judge Amidon ordered that this sum. be repaid at once, and appointed D. B. Holt, United States commissioner. as receiver to turn over the assets- to the stockholders. Hanway was later taken in custody on a criminal charge and placed under $5,000 bond. Hanway was formerly a wholesale manufacturer of dry goods in New York.

15. December 25, 1897 The Diamond Drill Crystal Falls, MI
Article from The Diamond Drill, December 25, 1897

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35,565,000 bushels; corn, 38,539,000 bushels; oats, 14,282,000 bushels; rye, 3,645,000 bushels; barley, 4,605,000 bushels. The internal revenue receipts for November amounted to $13,959,296, an increase as compared with November last year of $1,257,927. The makers of book paper in Wisconsin, Michigan, Indiana and Ohio have formed an association to stop the cutting of prices. No appointments will be made by the president during the holiday recess of congress except in case of emergency. The United States supreme court has djourned to the 3d of January. The consolidation of the three great cracker companies of the United States is now an assured fact, its capitalization being $55,000,000. John Osborne, 12 years ola, and Erwin Warren Oelm, 16 years of age, were drowned while skating on thin ice at Buffalo, N. Y. The Christmas money order business of the New York post office this year greatly exceeds that of any previous year. Leading cotton planters met in Memphis and formed an association to mainrain prices. J. A. Hanway, receiver for the defunct National bank of North Dakota. was arrested in Fargo on a charge of being short $10,000 in his accounts. The Golden Rule dry goods store was burned at Danville, III., the loss being $100,000, and Miss Mary Reed, a clerk, perished in the flames. Three schooners of the Gloucester (Mass.) fishing fleet with 49 men were given up as lost. Mrs. August Radke, of Oshkosh, Wis., gave birth to a 19 pound baby, breaking the record for weight in this country. The exportation of raw cotton from the southern states to Japan is practically double what it was last season. Freezing weather has greatly damaged the orange crop in California. The Southern Express company's office at Columbia, S. C., was robbed of $10,000. Fire destroyed the business portion of Doniphan, Mo. A report as to the penitentiary scandal in Nebraska discloses irregularities aggregating $537,871.87. The Auditorium theater and the Auditorium hotel in Kansas City, Mo., owned by Alexander Fraser, were burned, the loss being $300,000. The Hide and Leather bank in Chicago went into voluntary liquidation and the assets were transferred to the Union national bank. The doors of the First national bank of Pembina, N. D., were closed, with liabilities of $95,000. Leda Charland. 13 years old, George Morin. aged 15, and Frank Waterman, aged 18, were drowned at Gardner, Mars., while skating on thin ice. Three young persons were drowned while skating on a creek at Tonawanda, N.Y. Mrs. Ann Kelly. aged 65 years, and Miss Mary Baird, aged 80 years, died in Plainfield, N. J., from drinking wood alcohol. Engineers J. S. Hodson and L. B. Horton were killed in a railway wreck at Cayuga. Ind. Miss Leila Herbert, aged 30, daughter of ex-Secretary of the Navy Herbert, killed herself while despondent over ill health by jumping from a high window in Washington. Twenty-year-old Peter S. McMahon, crazed by cigarettes, shot and killed himself at Syracuse, N.Y.

16. December 29, 1897 The Ely Miner Ely, MN
Article from The Ely Miner, December 29, 1897

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THE WEEK'S NEWS Happenings of the Past Seven Days in Brief. ROUND ABOUT THE WORLD Casualties and Fires, Personal and Political Notes, Business Failures and Resumptions, Weather Record. INTELLIGENCE FROM ALL PARTS DOMESTIC. The consolidation of the three great cracker companies of the United States is now an assured fact, its capitalization being $55,000,000. John Osborne, 12 years old, and Erwin Warren Oelm, 16 years of age, were drowned while skating on thin ice at Buffalo, N. Y. The Christmas money order business of the New York post office this year greatly exceeds that of any previous year. J. A. Hanway, receiver for the defunct National bank of North Dakota, was arrested in Fargo on a charge of being short $10,000 in his accounts. The Golden Rule dry goods store was burned at Danville, III., the loss being $100,000, and Miss Mary Reed, a clerk, perished in the flames. Three schooners of the Gloucester (Mass.) fishing fleet with 49 men were given up as lost. Mrs. August Radke, of Oshkosh, Wis., gave birth to a 19 pound baby, breaking the record for weight in this country. The exportation of raw cotton from the southern states to Japan is practically double what it was last season. Freezing weather has greatly damaged the orange crop in California. The Southern Express company's office at Columbia, S. C., was robbed of $10,000. Fire destroyed the business portion of Doniphan, Mo. A report as to the penitentiary scandal in Nebraska discloses irregularities aggregating $537,871.87. The Auditorium theater and the Auditorium hotel in Kansas City, Mo., owned by Alexander Fraser, were burned, the loss being $300,000. The Hide and Leather bank in Chicago went into voluntary liquidation and the assets were transferred to the Union national bank. The doors of the First national bank of Pembina, N. D., were closed, with liabilities of $95,000. Leda Charland. 13 years old, George Morin, aged 15, and Frank Waterman, aged 18, were drowned at Gardner, Mars., while skating on thin ice. Three young persons were drowned while skating on a creek at Tonawanda, N.Y. Mrs. Ann Kelly, aged 65 years, and Miss Mary Baird, aged 80 years, died in Plainfield, N. J., from drinking wood alcohol. Engineers J. S. Hodson and L. B. Horton were killed in a railway wreck at Cayuga, Ind. Miss Leila Herbert, aged 30, daughter of ex-Secretary of the Navy Herbert, killed herself while despondent over ill health by jumping from a high window in Washington. Twenty-year-old Peter S. McMahon, crazed by cigarettes, shot and killed himself at Syracuse, N. Y. Burts Scrafford and Charlie Clifford were blow to pieces by an explosion of dynamite at Clearwater. N. Y. The United States training ship Alliance has arrived in New York after an extended cruise. Mrs. Barney Picker, aged widow, died in want at Lima, O., and the administrator found over $10,000 in cash and $6,000 in notes secreted in an old bonnet. In Milwaukee Walter C. Sanger broke his own world's indoor bicycle record for half a mile, unpaced, riding the distance in one minute flat. A loss of $150,000 was sustained by a fire which consumed the A. H. Andrews corapany's furniture factory in Chicago. Postmaster-General Gary has decided to order a special issue of stamps commemorative of the holding of the transMississippi exposition at Omaha the coming year. The school board of Iron Mountain, Mich., has forbidden its teachers to attend dances or parties on evenings preceding school days. The reciprocity negotiations between the United States and Germany are practically suspended. A train struck a stage coach at a crossing near Passaic, N. J., and 20 persons were injured. three fatally. Charles E. Stubbs has been sent to this to encour-