12386. First National Bank (Lakota, ND)

View Charter #4143 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
4143
Charter Number
4143
Start Date
May 29, 1893
Location
Lakota, North Dakota (48.043, -98.336)

Metadata

Model
gpt-5-mini
Short Digest
e70f96fe

Response Measures

None

Receivership Details

Depositor recovery rate
30.0%
Date receivership started
1893-06-13
Date receivership terminated
1904-05-07
OCC cause of failure
Excessive lending
Share of assets assessed as good
18.8%
Share of assets assessed as doubtful
77.7%
Share of assets assessed as worthless
3.4%

Description

The First National Bank of Lakota was closed by order of the Comptroller of the Currency in late May 1893 (reports cite May 29 and May 9 datelines). Closure was an administrative action due to insolvency and reported violations by the manager E. Ashley (E. A.) Mears; a federal receiver was appointed in mid-June 1893. No contemporaneous article describes a depositor run prior to suspension.

Events (4)
1. October 23, 1889 Chartered
Source
historical_nic
2. May 29, 1893 Suspension
Cause
Government Action
Cause Details
Closed by order of the Comptroller of the Currency (bank examiner enacted closure due to insolvency, law violations and inability to realize upon securities; management by E. A. Mears implicated).
Newspaper Excerpt
the First National band of Lakota, as Lakota. N. D., were closed to-day on orders issued by the comptroller of the currency.
Source
newspapers
3. June 13, 1893 Receivership
Source
historical_nic
4. June 13, 1893 Receivership
Newspaper Excerpt
Charles M. Wilson, receiver of the First National Bank of Lakota, North Dakota.
Source
newspapers

Newspaper Articles (13)
1. May 30, 1893 The Record-Union Sacramento, CA
Article from The Record-Union, May 30, 1893

Click image to open full size in new tab

Article Text

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 30, 1893 The Helena Independent Helena, MT
Article from The Helena Independent, May 30, 1893

Click image to open full size in new tab

Article Text

IN THE FAMILY. The Way in Which the Mears Family Or. gauised Banka WASHINGTON, May 29.-The National Bank of North Dakote, as Fargo. N. D., and the First National band of Lakota, as Lakota. N. D., were closed to-day on orders issued by the comptroller of the currency. Both were organized by E. Ashley Mears, who was also organizer of other national banks and many state banks and other institutions. His plan. sayn the comptroller, appears to have been to make loans to various institutions subscribing to the stock of the two national banks in amounts which, in some cases, exceeded the amount of stock subscribed to by them. The management of Faigo bank was ostensibly conducted by n board of five directors, consisting most of the time of E. Ashley Mears, Mrs. W. B. Mears, Mrs. D. C. Meais and Miss L. D. Mears, respectively wife, mother and sister of the president, and one other director who was not a member of the Mears family. This bank owes the treasurer of she United States about $14,000 for moneys expended br the treasurer in the redemption of circuiating notes of the bank coming into the treasury for redemption, and for which the bank has failed to reimburse the treasurer. The comptroller says he ordered Examiners Brush and Diamond to close these banks because of reveated violations of law on the part of the management and refusal of assossments, thereby producing a condition rendering them insolvent and dangerous as banks of deposit. OTTUMWA. Iowa, May 29. Wells & Garretson, private bankers at Fairfield. suspended payment to await the result of collection. Their total liabilities are about $50,000 and $80,000. The senior member of the firm is C. A. Garretson, a millionaire, formerly of Musoatine and Bioux City. and now of San Diego, Cal. He has no immediate part in the management. Wells saye they will probably resume payment as soon as reply can be had from Garretson, or sooner. if collections can be made on matured paper in the bank. CHICAGO, May 29.-An assignment was filed in the cours this morning by Weaver, Gaetso & Co., one of the largest coal dealing firms in the city. The liabilities are scheduled at $250,000. and the assets $200,000.

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

Click image to open full size in new tab

Article Text

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 1, 1893 Belmont Chronicle Saint Clairsville, OH
Article from Belmont Chronicle, June 1, 1893

Click image to open full size in new tab

Article Text

GENERAL NEWS NOTES. Items of Interest Gathered From Various Quarters. s Lewis Abbott, aged 17, shot himself at Atlanta, Ga., because his father told him to quit thinking about the girls. S. M. Wheeler, proprietor of a hotel y at Orrville, is missing. Commissioner Massey, of Delaware, has resigned from the World's Fair 1 Board because the gates were voted open on Sunday. t Two coal operators at Lancaster have brought suit against the Hocking Valley Railroad because the latter cars to their furnish the former ship would not coal. Carnet, Kas., was struck by a tornado on Thursday. The United Presbyterian General Assembly is in session at Monmouth, Ill. The North Baltimore Furniture Co. has gone to the wall for $50,000. Adam Kapple was killed at Mummaville by being jerked off his feet by a cow which he was leading, and falling so as to break his neck. Believing his wife to be unfaithful, John Simison, proprietor of the hotel at New Waterford, Columbiana county, swallowed two ounces of laudanum and will hardly recover. Misses Ethel May Sellers and Carrie Logan, both of respectable parents, are mysteriously missing from their homes at Lebanon, and their friends are much concerned over their absence. Daniel Wynohan, publisher of the Toledo Public Record, was thrown in front a car a barof moving electric by tender named Charles Strohmeir and almost killed, the result of asaloon row. Ex-Governor Foster has assigned for the benefit of creditors. Liabilities $800,000; assets much less. years has as a one Fred lived Matthews, hermit, who allowing for thirty no to enter his hut, died near Ashland. An injunction to restrain the World's Fair managers from opening the gates on Sunday, has been asked for. Hoke Smith has issued an order in regard to pensions requiring the disability, not of service origin, to be such as to prevent the applicant from earning a support by manual labor. At Roanke, Ind., Christian Haberkers killed his wife because she was a Catholic, set fire to his house and then killed himself. A colony of Mohammedans are arranging to Bettle in Georgia. F. H. Milburn, a son of the blind chaplain of the U.S. Senate, committed suicide at the Saratoga Hotel, Chicago. The World's Fair was opened on Sunday. About 173,000 people attended. Cholera has again made it appearance in Hamburg. Frederick Berry, an orphan boy at Lima, committed suicide because he was sick. A number of gate keepers at the World's Fair have been discharged for withholding tickets. The Comptroller of the Currency has ordered closed the First National Bank at Fargo, N. D., and the First National Bank at Lakota, N. D. John Hoy butchered his wife and two children at New Haven, Pa., and ended up by cutting his own throat. Foster may be able to effect a settlement with the creditors of Foster & Co. so that the bank can resume. The New York Central is running a train from New York to Chicago in 20 hours. Main's show was wrecked near Tyrone, Pa., and five people were killed and ten injured on Tuesday morning. The train bearing the remains of Jeff Davis reached Richmond Tuesday night. President Cleveland has gone to Hog Island to fish. He left Washington on Decoration Day. The Montana silver statue at the Fair was unvailed Tuesday. Mrs. James G. Blaine, Jr., has married her physician, Dr. Bull.

5. June 1, 1893 The Princeton Union Princeton, MN
Article from The Princeton Union, June 1, 1893

Click image to open full size in new tab

Article Text

BAD HALF BREEDS THEY ARE CHARGED WITH MAKING FALSE ENTRIES. Uncle Sam Working Up nn Interesting Case in North Dakota-Ashley Mears Connected With the CaseTwo of His Banks Closed. Washington, May 30.-An interesting case is now being worked up by the department of justice and the general land office for trial at Grand Forks, N. D., in the United States court. The government is trying to establish a case against the half-breed Indians about Rollette county on grounds of fraudulent entries. The claim is that the half-breeds were induced by Ashley Mears to go upon the lands, make proof, mortgage them to Mears and then he disposing of the mortgage in the East, and the half-breeds in order to do this were guilty of forgery. The district attorney of North Dakota, assisted by special agents of the general land office, is now working at the case, and an early trial is expected at Grand Forks. This Mears who is mentioned in connection with the case has been running banks in North Dakota. The purchasers of these mortgages will be protected by a law passed two years ago which protects innocent parties. Fargo, N. D., May 30.-The bank of E. Ashley Mears here was closed by the national bank examiner, under orders from the controller of the currency. The First National Bank of Lakota was also closed. The examiner will give out no statement of assets or liabilities. Cashier Mears announces the total indebtedness does not exceed $60,000, with assets of five times that amount. The statement in May showed less than $500 cash on hand.

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

Click image to open full size in new tab

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.

7. June 13, 1893 Evening Star Washington, DC
Article from Evening Star, June 13, 1893

Click image to open full size in new tab

Article Text

Bank Receivers Appointed. The controller of the currency has appointed receivers of insolvent national banks as follows: Joseph W. Bennet, receiver of the Oglethorpe National Bank of Brunswick. Ga. Charles M. Wilson. receiver of the First National Bank of Lakota. North Dakota. Elmer A. Howard, receiver of the First National Bank of Cedar Falls, Iowa. Henry H. Kerr, receiver of the First National Bank of Brady, Texas.

8. June 14, 1893 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, June 14, 1893

Click image to open full size in new tab

Article Text

A Receiver for Mears' Bank. WASHINGTON, June 13.-Comptroller Eckels has appointed receivers of insolvent national banks as follows: Charles M. Wilson, receiver of the First National Bank of Lakota, N. D.; Elmer A. Howard, receiver of the First National Bank of Cedar Falls, Io.

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

Click image to open full size in new tab

Article Text

A Receiver For Mears' Bank. WASHINGTON, June 15.-Comptroller Eckels has appointed receivers of insolvent national banks as follows: C. M. Wilson, receiver of the First National bank of Lakota, N. D.; Elmer A. Howard, receiver of the First National bank of Cedar Falls, Ia.

10. June 20, 1893 The Progressive Farmer Raleigh, Winston-Salem, Winston, NC
Article from The Progressive Farmer, June 20, 1893

Click image to open full size in new tab

Article Text

Bennett, receiver of the Oglethorpe National Bank of Brunswick, i Ga.; Charles M Wilson, receiver of the First National Bank of Lakota, N. D.; Eimer A. Howard, receiver of the First National Bank of Cedar Falls, Iowa, and Henry H. Kerr, receiver of the First National Bank of Brady, Texas.

11. June 22, 1893 The Comet Johnson City, TN
Article from The Comet, June 22, 1893

Click image to open full size in new tab

Article Text

COMPTROLTER Eckels yesterday ap. pointed receivers for the Oglethorp National Bank, of Burnswick, Ga.,; First National Bank, of Lakota, N. D. First National of Cedar Falls, Ia., and the First National, of Brady, Texas.

12. July 12, 1902 The Washburn Leader Washburn, ND
Article from The Washburn Leader, July 12, 1902

Click image to open full size in new tab

Article Text

First publication June 7, 1902. NOTICE OF SALE Notice ls hereby given that by virtue of a judgment and decree in foreclosure, rendered and given by the District Court of the Second judicial district in and for the county of Ward and State of North Dakota and entered in the office of the Clerk of the District Court of the said Ward county on the 8th day of May; 1902 and docketed in the office of the Clerk of the District Court in and for McLean County in the State of North Dakota in an action wherein J.C. Aurland is named as plaintiff and Ct arles A. Rydall. Bank of Minot a corporation, First National Bank of Lakota a corporation. Bank of Lakota a corporation. Bank of Lakota a corporation, Bank of Towner a corporation, A. B. Guptill as Receiver of the Bank of Minot, McLean county a public corporation, the State of North Dakota a public corporation, Frank P. Hawkins, B-S. Brynjolfson, H. Dewess Ecton as Receiver of the Bank of Lakota are defendants in favor of the plaintiff and against the said Charles A. Rydall for the sum of $1,105.47 and a decree and judgment in foreclosure against all and each of the said defendants which judgment and decree among other things directed the sale by me of the real estate hereinafter described to, satisfy the amount of the said judgment with interest thereon and the costs and penses of such sale or so much thereof as the proceeds of such sale applicable thereto will satisfy. And by virtue of a writ of execution to me issued, directed and delivered therein directing me to sell the said real estate pursuant to said judgment and decree, 1. Allan McDonald, Sher'ff of McLean County North Dakota and the perosn appointed by the court to make said sale will sell the hereinafter described real estate to the highest bidder for cash at public auction at the front door of the court house in Washburn in the county of McLean and State of North Dakota on Monday the 21st day of July, 1902, at the hour of ten o'clock in the forenoon of that day to satisfy the said judgment with interest and costs thereon and the costs and expenses of such sale or so much thereof as such proceeds of sale applicable thereto will satisfy. The premises to be sold aforesaid pursuant to such judgment and decree, and said writ and this notice are described as follows, to-wit: The south half of the north east quarter and lots one and two of section six, in township one hundred forty-seven north of range eighty-one west of the Fifth Principal meridian and located in McLean County North Dakota. Dated June 2nd, 1902. allan McDONALD, Sheriff of McLean County, North Dakota. C. Aurland. Attorney for Plaintiff Minot, N. D. First Publication June 7. last July 19. 1902.

13. May 31, 1913 The Fargo Forum and Daily Republican Fargo, ND
Article from The Fargo Forum and Daily Republican, May 31, 1913

Click image to open full size in new tab

Article Text

Wesley Styles of Grand Forks and Miss Abbie Van Camp were married at the home of the bride in Drayton. May 29-The National Bank of North Dakota, owned by E. Ashley Mears, was closed by the comptrollers of the currency. and Bank Examiner Diamond was placed in charge. The First National Bank of Lakota was also closed at the same time and put in charge of Bank Examiner Brush. Mr. Mears, the president, was in Boston at the time and the suspension caused no uneasiness in Fargo as there was very little local money on deposit. Hon. J. V. Brooke resigned as private secretary to Senator Roach and Fred McLain was appointed to fill the vacancy. A tennis club was organized in Moorhead with Dr. Awty as president and T. I. Lewis as secretary. Agent Moore was promoted to the office at Mankato, Minn., and Mr. Gross became the agent of the Milwaukee in this city. The old soldiers attended Memorial day services at the Catholic church, where the sermon was preached by Father Collins and on Memorial day Rev. Eugene May. delivered the oration. May 30.-Col. E. C. Gearey was the chief marshal for the Memorial day parade. The trustees for the State Industrial school at Ellendale selected the site for the institution and proposed to get the buildings up as soon as possible. Capt. Sherlock Camp, Sons of Veterans, was started by Major Geo. I. Foster and Emerson H. Smith was elected captain; C. P. Wade, first lieutenant. and J. F. Sheridan, second. A Grand Forks dispatch announced that Senator Roach would recommend James V. Brooke for receiver of the land office in that city and W. A. Bangs for register. W. A. Gordon resigned as foreman for The Forum and returned to Glenburn, Minn., to start a paper there of his own. Col. C. E. Tuller took a column or more of space to explain his position on the general staff of the governor, and show by many quotations how impossible it was for Adjutant General Topping to get him removed. May 31-Seth Newman, B. F. Spalding and Geo. H. Phelps formed the law firm of Newman, Spalding & Phelps, while Rourke & Allen of Lisbon dissolved partnership, each conducting business for himself. W. C. Resser resigned from the firm of Newman & Resser and formed a partnership with H. F. Miller under the firm name of Miller & Resser. The North Dakota district of the German Lutheran synod of Iowa was in session in St. Mary's church in this city with a fair attendance.