12493. Mohall State Bank (Mohall, ND)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: November 23, 1920
Location: Mohall, North Dakota (48.763, -101.513)

Metadata

Model: gpt-5-mini
Short Digest: 4c66b903

Response Measures

None

Description

Newspapers report the Mohall State Bank closed on Nov 23, 1920 and was placed in receivership amid large shortages and alleged embezzlement by officers. No article describes a depositor run prior to suspension; the failure appears driven by bank-specific fraud/insolvency. Receiver W. H. McIntosh was appointed and extensive litigation followed.

Events (3)

1. November 23, 1920 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Closure followed discovery of large shortages and alleged embezzlement/poor management by officers; criminal charges and civil suits followed.
Newspaper Excerpt: The Mohall State bank is one of many institutions named... The Mohall State bank is one of many institutions named in a suit... The bank closed Nov. 23, 1920.
Source: newspapers

2. January 20, 1921 Other

Newspaper Excerpt: J. C. Peters, president, F. W. Weibe, vice president, and W. W. Bergman, cashier of the Mohall State bank which closed several weeks ago, were arrested ... charged ... with embezzlement of $9,000 in Liberty bonds several months ago. The bank's shortage will amount to several hundred thousand dollars and other criminal actions are probable.
Source: newspapers

3. January 20, 1921 Receivership

Newspaper Excerpt: W. H. McIntosh of the state bank examiner's staff, whose appointment as receiver of the institution was confirmed by Judge Burr in the district court at Rugby Tuesday, has not completed his examination of the affairs of the institution, ... Mohall State bank which closed several weeks ago, were arrested ...
Source: newspapers

Newspaper Articles (15)

1. November 24, 1920 The News Scimitar Memphis, TN

Article from The News Scimitar, November 24, 1920

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Grain. Chicago.-Accepting the government's figures on crop and carry-over from and assuming home consumption is at prewar rate, we find about 70,000,000 bushels of wheat remaining for export in the next seven months. New export business is averaging around 1,000,000 bushels daily. This is not a comfortable showing for those who believe that deflation is not yet complete.-T. & M. Chicago.-Julius H. Barnes, former president of the United States grain corporation. who was in Chicago yesterday, said: "I think we have seen worst of the liquidation in the grain markets, security and commodities markets. I do not see anything especially bullish in the wheat situation, but the apprehension regarding the grain and commodity markets has placidly subsided. The export situation is healthy. Sales running around 1,000,000 bushels per day on the average. However, we have not as yet used up our exportable surplus owing largely to the fact that domestic consumption is smaller than usual this season. Chicago.-Estimated today hogs left over 14,356. Average price hogs yesterday $9.90 against $12.45 week ago and $13.20 year ago.-C. C. & Co. Grain receipts-Duluth. wheat, 291; Minneapolis, wheat, 495; Winnipeg, wheat, 884; Kansas City, wheat, 155; corn. 21; oats, 1. St. Louis-Cars: Wheat, 42 local and 45 through; corn, 31; oats 27 local and 18 through. Chicago-Very little doing in hogs; bidding sharply lower: one load choice medium butchers. $10.00; quality fairly good.-Wagner to Shepard & Gluck. Chicago.-Private bank at Homer, III., in heart of corn belt, has failed for $280,000. One report says 5,000,000 pounds of January lard was bought Monday by packers. January ribs at $12 and January lard at $14 represent around $9 hogs. Western hogs dropped 50 cents to $1 and are around a $9.90 average.-Wild to Shepard & Gluck. Omaha.-Hogs 50c lower. Chicago.-Local fresh pork resumed its downward course this morning with a drop of 2 to 3 cents per pound. Pork loins at 32 cents are lowest for this cut since the early war days. Chicago.-United Kingdom: Reduction in wheat prices by the wheat commission is expected shortly. Merchants here are able to offer at prices below official rates. Chicago.-Cargo of 150,000 Canadian dark No. 1 spring wheat arrived at South Chicago yesterday. Chicago.-Bartlett Frazier out with opinion that country banks are loaded and farmers must sell corn. The very weak opening in grain has led to some lack of confidence on part of break buyers.-Wild. Chicago.-Winnipeg wires: Lots good buying November wheat. Must have been business worked some place.Wild to Shepard & Gluck. Chicago.-Main cause of break and selling at opening was caused by following message before opening: "There are 300,000 barrels of flour here at Philadelphia, three elevators in distress and losses terrific and final draft on unpaid much more to arrive. I understand same conditions prevail in other terminals. It will break up a lot of mills.-O'Brien to McFall. Minneapolis.-Mohall State bank, Mohall, N. D., closed. Chicago.-Wild says: On account of big receipts Friday believes March wheat will sell at $1.47 and May corn at 70c. Chicago.-New York wires 2,000,000 wheat worked to Spain and Italy. Chicago.-Thomson McKinnon's Wichita, Kas., office wires: "A plan of advancing farmer a dollar a bushel on wheat with contract that he can deliver now and sell any time he wants to have been adopted by large line elevator houses and mills. This will move considerable wheat and stop lot of talk about foreing farmers to sell." Stock. New York-National City bank, New York, places $10,000,000 at disposal of Cuban sugar planters. Great pressure be brought on congress next month for immediate legislation to aid business, tax reform and foreign trade promotion up; shoe prices cut ZU per cent in St. Louis; United States government holds over-$11,000,000,000 of foreign securities. Wall Street Journal: Reading road orders 20,000 tons of rails; Gary says business conditions are good, no panic in sight, smaller profits ahead, labor 85 per cent unorganized. New York-1A leading banker expressed opinion that big liquidation is over. He acknowledged there are two or three sore spots in the market; says that these will be undoubtedly taken care of.-Hensley.

2. January 20, 1921 Grand Forks Herald Grand Forks, ND

Article from Grand Forks Herald, January 20, 1921

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MOHALL BANKERS ARE ARRESTED Three Officials of Closed Institution Face Embezzlement Charges. Mohall. N. D., Jan. 20.-J. C. Peters, president, F. W. Weibe, vice president, and W. W. Bergman, cashier of the Mohall State bank which closed several weeks ago, were arrested by Sheriff James McKechnie late Tuesday on warrants issued by State's Attorney Percy S. Crewe. The warrants, sworn out by John Bena, deputy state bank examiner, charge the three bank officers with embezzlement of $9,000 in Liberty bonds SCVeral months ago. Bonds were fixed at $10,000 each and arrangements are being made for preliminary hearings before the end of the week. W. H. McIntosh of the state bank examiner staff, whose appointment as receiver of the institution was confirmed by Judge Burr in the district court at Rugby Tuesday, has not completed his examination of the affairs of the institution, but it is stated in some quarters that the bank's shortage will amount to several hundred thousand dollars and that other criminal actions are probable. In the court action in the district court at Rugby yesterday officers of the bank sought to have George Schofield, former sheriff of Renville county, appointed receiver instead of W. H. McIntosh. Bottineau banker. who was appointed by O. E. Lofthus, state bank examiner.

3. January 20, 1921 The Ward County Independent Minot, ND

Article from The Ward County Independent, January 20, 1921

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MOHALL BANKERS ARRESTED FOR EMBEZLEMENT Mohall, N. D., Jan. 19.-J. C. Peters, president, F. W. Weibe, vice president, and W. W. Bergman, cashier of the Mohan State bank, which closed several weeks ago, were arrested by Sheriff James McKechnie late yesterday on warrants issued by State's Atty. Percy S. Crewe. The warrants, sworn out by John Bena, deputy state bank examiner, charge the three bank officers with embezzlement of $9,000 in Liberty bonds several months ago. Bonds were fixed at $10,000 each and arrangements are being made for preliminary hearings before the end of the week. W. H. McIntosh, of the state bank examiner's staff, whose appointment as receiver of the institution was confirmed by Judge Burr in district court at Rugby yesterday, has not completed his examination of the affairs of the institution but it is stated in some quarters that the bank's shortage will amount to several hundred thousand dollars and that other criminal actions are probable as a result In the action in district court at Rugby yesterday, officers of the bank sought to have George Scofield, former sheriff of Renville county, appointed receiver instead of W. H. McIntosh, Bottineau banker, who was appointed by O. E. Lofthus, state bank examiner.

4. January 20, 1921 The Ward County Independent Minot, ND

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NORTH DAKOTA NEWS There are a few cases of scarlet fever in light form at Makoti. The up-to-date Glenburn band motored to Granville Friday night where it gave a fine concert and dance. It does not usually pay to start a newspaper for political purposes. It cost the farmers of Grand Forks county $150,000 to start the Grand Forks American, which recently suspended. John Gerling, while cutting ice on the Missouri river near the new bridge, fell in and was compelled to swim 200 feet to shore. Had he not been a good swimmer, he would have been carried under the ice. C. E. Colcord of Mohall, who was elected auditor of Renville county, has been appointed deputy sheriff of that county by Sheriff Jas. McKechnie and will hold this position until he takes charge of his office. The stockholders of the Mohall State Bank want former Sheriff Scofield of Renville county appointed receiver, but the examiner wants to appoint someone else. The dispute has been taken before Judge Burr. St. Joseph, Md., has a man who is building a row of houses to rent to families only with children. Whenever a child is born the rent for that month is remitted. He ought to have no trouble in filling up his houses. Farmers who are offering their hail warrants at 80 cents on the dollar do not think very kindly of William Lemke, who borrowed some money from the Home Building department to assist in building a $14,000 palatial residence at Fargo. Oscar Reiquam, prominent Glenburn implement man, was united in marriage to Miss Minnie Winjum at Albert Lea, Minn. The bride until recently was bookkeeper at the Lincoln State bank at Glenburn. The groom went to France with one of the Minot companies. Jos. Quamme, who for eight years was register of deeds of Bottineau county, visited at the home of his sister, Mrs. R. C. Lang, Friday. Mr. Quamme, who is an old time printer, has accepted a position as northwestern representative for the blanks and book department of the Grand Forks Herald. Judge Burr handed down a decision at Rugby last week which is of interest to all hunters especially. In the fall of 1919 Wm. Busse working for J. A. Crain picked up Crain's shot gun and went out shooting ducks. Busse did not have a license and was picked up by the game warden and the gun confiscated and sold. Crain brot action to recover the gun and he won out. Two years ago J. T. Phillips of Glenburn shipped a car of mares to Fulton, Mo., and last fall a mule colt from one of these mares won first prize at the street fair held at Fulton. The owner of the colt refused $260.00 for the animal. Missouri is the home of the best mules in the country and for a North Dakota mare to invade that state and carry off first prize for her off-spring is going some. Gus Wog will continue as state senator, the elections committee after hearing the contest instituted by R.J List decided that while there were ir regularities in the election there was no evidence of fraud. The contest hinged on three precincts in Billings county where ninety per cent of the voters are said to be unable to read and write English. Five nonpartisans and one Independent voted for retaining Wog and three Independent for unseating him. The Senate by seating Wog is controlled by the nonpartisans with one majority.

5. January 21, 1921 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, January 21, 1921

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REPORT ARRESTS AT MOHALL IN BANK FAILURE Mohall, N. D., Jan. 21.-J. C. Peters. president; F. W. Weibe, vice president, and W. W. Bergman, cashier of the Mohall State bank, which closed several weeks ago, were arrested by Sheriff James McKechnie late yesterday on warrants isued by the state's attorney, Percy S. Crewe. The warrants, sworn out by John Bena, deputy state bank examiner charge the three bank officials with embezzlement of $9,000 in Liberty bonds several months ago. The thrée were held in bonds of $10,000 each and arrangements made for preliminary hearings late this week. W. H. McIntosh of the state bank examiner's staff, whose appointment as receiver of the institution was confirmed by Judge Burr in the district court at Rugby late yesterday, has not completed his examination of the affairs of the institution and the extent of the alleged defalcations has not been learned. It was stated at the office of the state examiner today that no word had been received from Mohall concerning the action. O. E. Lofthus, examiner, is out of the city.

6. February 21, 1921 Grand Forks Herald Grand Forks, ND

Article from Grand Forks Herald, February 21, 1921

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Suit For Slander Grows Out Of Bank Closing At Mohall Mohall, Feb. 20.-George A. Scofield. former sheriff of Renville countv. has instituted a $20,000 damage action against S. H. Sleeper of Mohall. The plaintiff alleges slander. The case is one of the developments following the closing of the Mohall State bank. Sleeper was first named temporary receiver for that institution but was removed and succeeded by Scofield. The banking board took the matter into court and had its appointment of W. E. McIntosh of Bottineau sustained. It is understood Mr. Scofield takes exception to certain statements alleged to have been made by Sleeper concerning the manner in which Scofield discharged the duties of sheriff.

7. August 10, 1922 The Bottineau Courant Bottineau, ND

Article from The Bottineau Courant, August 10, 1922

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NOTICE OF SALE NOTICE IS 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 Bottineau and State of North Dakota, and entered and docketed in the office of the Clerk of said Court in and for said County on the 13th day of July 1922, in an action wherein George Schmich was plaintiff and John D. Brown, Jimena Brown. W. H. McIntosh, Receiver of the Mohall State Bank, Minnesota Transfer State Bank of St. Paul, Minnesota, and the Coon Valley State Bank of Coon Valley, Wisconsin, were defendants, in favor of the said plaintiff and against said defendants John D. Brown and Jimena Brown, for the sum of Four Thousand Fifty Three and 57-100 ($4,053.57) Dollars, which judgment and decree among other things directed the sale by me of the real estate hereinafter described to satisfy the amount of said judgment, with interest thereon and the costs and expenses of such sale, or so much thereof as the proceeds of such sale applicable thereto will satisfy. And by virtue of a writ to me issued out of the Office of the Clerk of said Court in and for said County of Bottineau and under the seal of said Court, directing me to sell said real property pursuant to said judgment and decree, I, Thos. Hennessy, Sheriff of said county and person appointed by said 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 the City of Bottineau, in the County of Bottineau and State of North Dakota on the 25th day of August, 1922 at 2:00 o'clock P. M. of that day to satisfy said judgment, with interest and costs thereon. and the costs and exp nees of such male, or so much thereof as the proceeds of such sale applicable thereto will satsfy. The premises to be sold as aforesaid pur-

8. February 20, 1923 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, February 20, 1923

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W. H. McIntosh, receiver of th: Mohall State bank, was a business visitor here today.

9. April 3, 1923 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, April 3, 1923

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BANK CRASH BRINGS BIG CIVIL SUIT ght Hundred and Sixty Nine Thousand Dollars Is Demanded Unot, N. D., April 3.-Coming as ceho of the senational crash of Mohall State bank of Mohall is $869,000 civil action instituted W. H. MeIntosh receiver of the against C. D. Griffiths of Minnapolis, former president. This sum alleged to represent the losses inurred by depositors in the closed ank. Edward P. Kelly, formerly of Carmgton, but now residing in Minnspolis, is counsel for Mr. McInThe Mohall bank receiver is Minot today. The civil action according to Mr. Teintosh is brought against Griffiths the grounds of negligence in suervision while the defendant was resident of the bank. The comTaint alleges that the money was isdirected, embezzled and used for rsonal purposes. It is not in evionce according to Mr. MeIntosh hut any of the money was used by ffiths. Griffiths, reputed to be a wealthy nesota banker escaped trial on a harge of conspiracy to use the mails to defraud at the last term the federal court in Minot a few nths ago after the prosecuting atvrney had made a nolle proseque gainst J. C. Peters, W. W. Bergman Frank W. Wiebe on the conspircharge. Peters, Bergman and Wiebe are ow serving sentences in the federal ison at eavenworth, Kan. Peters serving four years, Bergman two ears and Wiebe one year and a day. Tiebe recently was granted 10 days herty to enable him to return home nd visit his wife who was ill. He mained in Mohall only three days nd then returned to complete his entence.

10. May 30, 1923 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, May 30, 1923

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8 ATTORNEYS SEEK EVIDENCE IN BANK CASE Mohall State Bank Failure Involves Sum of $1,000,000 Mohall, N. D., May 30.-Mohall proved long on attorneys, gathered from over the northwest, and short on court reporters, as a result of which a good sized delegation is marking time while the only reporter available is taking deposition in the action of the state seeking the dissolution of the Great American Gas company. Eight attorneys from Minot, Bottineau, Fargo and Minneapolis swooped down on Mohall to secure repositions in various phases of the $1,000,000 failure of the Mohall State bank. The deposition of J. C. Peters, former president, who was brought back from Leavenworth to co-operate with the receiver of the closed institution and the authorities in prosecuting those criminally responsible with the officers of the bank for loading it with worthless paper, gave testimony in actions against three surety companies who furnished the bonds of the three bank officials. About $35,000 is involved. The depositions of Will Clifford and J. E. Bryans in the action of the state to dissolve the Great American Gas company are being taken. In this Special Assistant Attorney General Frencis Murphy, who also served as special assistant United States attorney in the Mohall bank case, represents the state, while Judge L. J. Palda of Minot, represents the defendant company. As soon as these depositions are taken, the deposition of J. C. Peters in the case of the closed bank against C. D. Griffith of Sleepy Eye, Minn., and Minneapolis, for the recovery of a third of $1,000,000 will be taken. Griffith, at one time president and stockholder of the Mohall bank, is charged with liability by the 'receiver for failure to direct the affairs of the bank when he was connected with it.

11. November 10, 1923 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, November 10, 1923

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FORMER BANK HEAD HELD Mohall N. D., Nov. 10.-W. H. McIntosh, receiver of the Mohall State bank of Mohall, N. D., has begun action in Hennepin county, Minnesota, against C. D. Griffith of Minneapolis, former president of the bank, to recover $500,000. McIntosh charges that Griffith is liable for bad loans and poor management. The bank closed Nov. 23, 1920.

12. December 4, 1923 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, December 4, 1923

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NEW BANK LAW MAY COME TO COURT AGAIN Fargo, Dec. 4.-The question of the constitutionality of Senate Bill No. 267, aimed to place control of all closed state banks in North Dakota under the supervision and control of the supreme court, went to the supreme court again, when Judge C. W. Cooley overruled objections to jurisdiction entered by Attorney Frahcis Murphy of Minot in behalf of W. H. McIntosh, as receiver of the defunct Mohall State bank. The Mohall State bank is one of many institutions named in a suit instituted by the attorney general in the supreme court to compel it to come under the new law throwing all closed banks under the control of the supreme court. This law was previously tested, and the supreme court filed a memorandum order upholding the constitutionality of the act for reasons to be cited in an opinion of the court, which up to this time has not been written.

13. December 18, 1923 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, December 18, 1923

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# BANK CASE # IS DISMISSED Big Suit Against Mohall Bankers Is Dropped Minot, Dec. 18. - Dismissal of the $697,000 suit brought by the receiver of the Mohall State bank of Mohall, N. D., against C. D. Griffith, formerly president of the institution, as told in dispatches today from Minneapolis, completes another chapter in the history of the defunct institution, the crash of which eventually sent three men to the federal penitentiary at Leavenworth for using the mails to fraud. Judge W. R. Gray of Minneapolis, sitting as a special master in the case, ordered its dismissal yesterday. Still pending against Griffith in federal court in Minneapolis is an action for $5,700 brought by Receiver W. H. McIntosh of the bank, for which it is alleged Griffith is liable under the North Dakota statues This figure represents double the amount of stock held by Giffith in the bank, the complaint in the action alleges. The $697,000 suit against Griffith was based on the grounds that he failed in his capacity as president of the bank to properly supervise the operation of the instution; which resulted in the making of excess loans, stocking of the bank with accommodation notes and with the consequent alleged embezzlement by other officers of the funds of the bank. W. W. Bergman and J. C. Peters, former officers of the bank, now serving sentences in Leavenworth after having been sentenced in Minot more than a year ago for using the mails to defraud, have been in Minneapolis during the past month testifying in the case before Judge Cray. They were in the custody of federal officers.

14. February 21, 1924 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, February 21, 1924

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FRAUD CHARGED AS DEFENSE TO BONDING SUIT Minot, N. D., Feb. 21.-Judge C. W. Buttz of Devils Lake in district court chambers in Minot took under advisement pending a decision arguments on various points of law in the action brought by W. H. McIntosh as receiver of the Mohall State bank of Mohall, N. D., to recover $30,000 and interest from two bonding companies who furnished bonds of $10,000 for J. C. Peters, W. W. Bergman and F. W. Wiebe, president, vice president and cashier of the defunct institution. The Dakota Trust company of Fargo and the American Surety company of New York city, the defendant companies in the action, are opposing payment on the bonds, alleging that the information furnished the companies in the application was grossly fraudulent. The surety companies allege that each of the three bonds was signed by others of the three officials, testifying to the good character of the applicant, and that at that time the bankers were defaulting and 'that consequently the bonds were secured through fraud. Consequently, the defendants alleged, the bonding companies cannot be held liable for payment of the instruments. The case, which re-echoes the tremendous failure at Mohall which subsequently sent Peters, Bergman and Wiebe to the federal penitentiary at Fort Leavensworth, Kan., and phases of which at various times have occupied attention of courts in this district for many months, involves what is believed to be one of the largest amounts of any case recently heard in district court.

15. June 9, 1925 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, June 9, 1925

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# DECISIONS OF SUPREME COURT From Renville County W. H. McIntosh, as Receiver of Mohall State Bank, Mohall, North Dakota, an insolvent corporation, Plaintiff and Respondent, vs. Dakota Trust Company, a corporation, Defendant and Appellant. (Two cases). W. H. McIntosh, as Receiver of Mohall State Bank, Mohall, North Dakota, an insolvent corporation; Plaintiff and Respondent, vs. The American Surety Company of New York, et als., Defendants. The American Surety Company of New York, Defendant and Appellant. # SYLLABUS: 1. It is the duty of the board of directors of a bank to procure and file with the State Banking Department a satisfactory surety bond insuring their own fidelity as officers, and, if they themselves be employed by the bank, as employees of the institution. Secs. 5150 and 5181, C. L. 1913. 2. When a banking corporation requires a bond of an employee, it may take part in procuring a satisfactory bond to the extent of answering questions as to the employees's record in the existing employment, and in answering such questions it is its duty to disclose correctly, it is assumed to comply with such request for information, any knowledge it may have of past or existing defaults. Giving such information, in the name of the bank, as to the record of the employee in the existing employment, is violative neither of the statutes nor of public policy. 3. Actual authority is such as the principal intentionally confers upon the agent, or intentionally or by want of ordinary care allows the agent to believe himself to possess. Sec. 6337, C. L. 1913. Where for a period of six years, it had been customary for officers of a bank to give information to prospective sureties as to the record of employees in existing employments, without objection or protest by the corporation.