12321. Farmers State Bank (Havelock, ND)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
December 20, 1921
Location
Havelock, North Dakota (46.475, -102.744)

Metadata

Model
gpt-5-mini
Short Digest
df98d9f3

Response Measures

None

Description

Articles (Dec 1921) report the Farmers State Bank at Havelock was closed by the state banking department and placed in receivership; stockholders sought to remove receivers. No run or depositor agitation is mentioned. The closure is by state authority (government action); the bank remains in receivership/closed in these reports. Hearing scheduled Dec 20, 1921.

Events (3)
1. December 20, 1921 Other
Newspaper Excerpt
hearing in the matter will be held in the court chambers in Dickinson on December 20. Judge Thomas H. Pugh will conduct a hearing here December 20. C. L. Merrick ... has begun action demanding the removal of receivers appointed by O. E. Lofthus, and asking that the closed institutions be placed under court supervision with new receivers appointed. The Bank of North Dakota is intervening ... The Guaranty Fund Commission will be represented ... .
Source
newspapers
2. * Receivership
Newspaper Excerpt
receivers appointed by the guaranty fund commission for the Security State bank of New England, Slope county Bank of Amidon, and Farmers State bank of Havelock and appoint other receivers.
Source
newspapers
3. * Suspension
Cause
Government Action
Cause Details
Closed by the state banking department and placed under the control of the Guaranty Fund Commission/state banking board; receivers appointed by state examiner/board; stockholders contesting receivership in court (hearing Dec 20, 1921).
Newspaper Excerpt
the Farmers' State Bank at Havelock, N. D., all of which were closed during the last year
Source
newspapers

Newspaper Articles (6)
1. December 5, 1921 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, December 5, 1921

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Article Text

Stockholders Demand Removal Of Receivers Appointed By Lofthus Dickinson. N. D., Dec. 5.-C. L. Merrick of Minneapolis, representing the majority of the stockholders and creditors of the Security State Bank of New England, the S'ope County State Bank at Amidon and the Farmers' State Bank at Havelock, N. D., all of which were closed during the last year, has begun action demanding the removal of receivers appointed by O. E. Lofthus, and asking that the closed institutions be placed under court supervision with new receivers appointed. Judge .Thomas H. Pugh will conduct a hearing here December 20. The Bank of North Dakota is intervening on the ground that stockholders and other creditors have no right to intervene in the matter and should abide by the decision of the state banking board. The state guaranty of fund commission, consisting a leaguers, would intervene from standpoint of protection to the depositors and creditors.

2. December 5, 1921 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, December 5, 1921

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Article Text

ASKS COURT TO NAME RECEIVERS C. L. Merrick, of Minneapolis, Brings Suit in Case in Stark Co. Dickinson, N. D., Dec. 5-C. L. Merrick of Minneapolis, represent ing the majority of the stockholders and creditors of the Security State bank at New England, the Slope County State bank at Amidon and the harmers State bank at Havelock, all of which have been closed by the state banking department during the past year, this week through his at torney, Ctto Thress, brought action asking that the affairs of the banks be placed under court supervision and demanding the removal of receivers now in charge of the closed institutions and new appointees placed in their stead. A hearing in the matter will be held in the court chambers in Dickinson on December 20, before Judge Thomas H. Pugh. The Guaranty Fund Commission will be represented at the hearing by the attorney general's department. while the Bank of North Dakota will be represented by L. A. Simpson. The Bank of North Dakota as one of the minor creditors of the closed banks claims that the stockholders and other creditors have no right to intervene in the matter and should abide by the decision of the state banking board, it was said. This point the stockholder creditors question. The Guaranty Fund commission is intervening from a standpoint of protection to the depositors and creditors. This, the majority creditors claim, would be acceptable to them. They further state that all they ask is a strict business management accounting of the affairs of the bank by those in charge.

3. December 10, 1921 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, December 10, 1921

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Article Text

DENY RIGHT OF COURT TO NAME BANK RECEIVER Answer of State Boards Hold That Under Law Courts Are Without Power CASE IN DICKINSON The policy of the Guaranty Fund Commission toward administration of closed banks in the state is outlined in an answer filed in the Stark cirC. L. Young, for the marck, cuit court attorney by commission. of Bisis in the name the Fund Guaranty The answer Commission, North of State Da Board and state in cases in kota Banking as intervenors the of which G. L. Merrick, of Minneapolis, asked the court to remove receivers of three banks appointed by the banking board and to appoint receivers. It is contended, Mr. Young said, that the courts have no power to interfere with the administration of insolvent the banks in under_ circumstances held that exist- the ing these cases. It is supervision is under the Guaranty Fund Commission and the State Bank ing Board. Proposal on Receivers. The proposal of the state boards for the consolidation of receiverships also is discussed in the answer. It states that the boards as constituted with changes made in the election have "determined to group insolvent banks, where a grouping thereof shall be possible and place in charge of several of such banks conveniently located a single receiver qualified by practical experience as a banker and business ability to manage the affairs of said banks in a proper and businesslike manner." It is further stated that under the proposed grouping, made public a few days ago in which the number of receivers would be reduced half or more, to group the three banks involved under one receiver. The three banks are the Security State of New England. Slope County Bank of Amidon, and Farmers State Bank of Have lock. Purpose in Future. The answer of the intervenors sets out that at the time the banks became insolvent the state examiner then in office was appointed a receiver for each and his appointment in each case was approved by the state banking board. The Guaranty Fund Com mission has levied assessments since the failures began last year and will in due course pay the depositors. The commission under the law is the principal creditor of each bank. It sets out that the change of administration has caused a change in the personnel of the guaranty fund board and banking board and that a new state examiner is in office. It declares that under the direction and supervision of the Guaranty Fund Commission and Banking Board as now constituted the affairs of the banks will be handled so as to protect all creditors and stockholders and all parties interested. The case is scheduled to be heard in Dickinson Dec. 20. The Guaranty Fund Commission will also, it is announced, ask Judge Lembke to vacate an order appointing a receiver for the Slope County bank. The commission was informed that upon representations by Leslie Simpson. as attorney for creditors, Judge Lembke did name a new receiver for this bank.

4. December 12, 1921 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, December 12, 1921

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Article Text

RECEIVERSHIP PLAN UPHELD BY ATTORNEY Fund Commission and Banking Board Control Insolvent Banks, Says Counsel, Bismarck. N. D., Dec. 10.-The policy of the Guaranty Fund Commission toward administration of closed banks in the state is outlined in an answer filed in the Stark circuit court by C.L. Young. of Bismarck. attorney for the commission. The answer is in the name of the Guaranty Fund Commission. State Banking Board and State of North Dakota as intervencrs in the case in which C. L. Merrick of Minneapolis, asked the court to remove receivers of three banks appointed by the banking board and to appoint receivers. It is contended. Mr. Young said, that the courts have no power to in terfere with the administration of insolvent banks under the circumstances existing in these cases. It is held that the supervision is under the Guaranty Fund Commission and the State Banking Board. The proposal of the state boards for the consolidation of receiverships also is d'scussed in the answer. It states that the boards as constituted with changes made in the election have 'determined to group insolvent banks, where a grouping thereof shall be possible and place in charge of séveral of such banks conveniently 10. cated a single receiver qualified by practical experience as a banker and business ability to manage the affa rs of said banks in a proper and business-like manner.' It is further stated that under the proposed grouping. made public a few days ago in which the number of receivers would be reduced half or more, to group the three banks in volved under one receiver. The three banks are the Security State of New England. Slope County Bank oi Ami don and Farmers State Bank of Have. lock. The answer of the intervenors sets out that at the time the banks became inslovent the state examiner then in office appointed a receiver for each and his appointment in each case was approved by the state bank. ing board. The Guaranty Fund Com. mission has levied assessments since the failures began last year and will in due course pay the depositors. The commission under the law is the principal creditor of cach bank. It sets out that the change of administra tion has caused a change in the per. sonnel of the guaranty fund board and banking board and that a new state examiner is in office. It declares that under the direction and supervision of the Guaranty Fund Commission and Banking Board as now constituted the affairs of the all creditors and stockholders and all parties interested. The case is scheduled to be heard in Dickinson December 20. The Guaranty Fund Commission will also is announced. ask Judge Lembke to vacate an order appointing a receiver for the Slope county banks. The commisson was informed that upon representations by Leslie Simpson, as attorney for creditors, Judge Lembke did name a new receiver for this bank.

5. December 21, 1921 The Bemidji Daily Pioneer Bemidji, MN
Article from The Bemidji Daily Pioneer, December 21, 1921

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Article Text

POWER OVER INSOLVENT BANKS BEING TESTED (By United Press) Dickinson, N. D., Dec. 21.-Powers of the guaranty fund commission, state banking board and courts as regards insolvent banks are expected to be clearly defined as the result of a case here today before Judge Lemke in Stark county circuit court. C.L. Merrick of Minneapolis asked the court to remove receivers appointed by the guaranty fund commission for the Security State bank of New England, Slope county, Bank of Amidon, and Farmers State bank of Havelock and appoint other receivers. The state, the banking board and guaranty fund commission hold through their attorney, C. L. Young, of Bismarck, that this not within the power of the court and that the board and commission have complete control of insolvent banks. The commission will also ask Judge Lemke to remove a receiver which he appointed on request of attorney for creditors for Slope county bank. The answer field by the commission whose personnel was changed through the recall election, reveals the intention of the commission to group several of the closed banks under one receiver, thus reducing by about onehalf the number of receivers in state banks in North Dakota.

6. December 23, 1921 The Mankato Free Press Mankato, MN
Article from The Mankato Free Press, December 23, 1921

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Article Text

HEARING BANK CASE Important Question Expected In Trial at Dickenson, N. D. Dickenson, N. D., December 21.Powers of the guaranty fund commission, state banking board and courts as regards insolvent banks are expected to be clearly defined as the result of a case here today before Judge Lembke in Start county circuit court C.-L. Merrick of Minneapolis asked the court to remove receivers appointed by the Guaranty fund commission for the Security State Bank of New England, Slope county Bank of Amidon, and farmers State Bank of Havelock and appoint other receivers. The state, the banking board and guaranty fund commission hold through their attorney, C. L. Young, of Bismarck, that this is not within the power of the court and that the board and commission have complete control of insolvent banks. The commission will also ask Judge Lembke to remove a receiver which he appointed on request of attorney for creditors for Slope County bank. The answer filed by the commission whose personnel was changed through the recall election, reveals the intention of the commission to group several of the closed banks under one receiver thus reducing by about one half number of receivers in state banks in North Dakota.