New England State Bank - New England, ND

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: March 19, 1925
Location: New England, North Dakota (46.539, -102.868)

Metadata

Model: gpt-5-mini
Short Digest: f08dc063

Response Measures

Full suspension, Books examined

Other: State receiver (L. R. Baird) took charge; prosecution of Hastings mentioned.

Description

Articles describe a three-day run precipitated by publication of the bank's statement of condition after J. J. Hastings took control; deposits declined and the bank was forced to close (reported Mar 21, 1925). A receiver was later appointed (L. R. Baird took charge, reported 1925-06-02). Hastings was later accused of embezzlement. Classification: run led to suspension and permanent closure with receiver.

Events (3)

1. March 19, 1925 Run

Cause: Bank Specific Adverse Info
Cause Details: Publication of the bank's statement of condition after J. J. Hastings took control; revelations and suspicions about Hastings' conduct and rapid decline of deposits precipitated withdrawals.
Measures: No specific remedial measures reported in the articles prior to closing.
Newspaper Excerpt: closed Tuesday following a three day run precipitated by publication of the first statement of the bank's condition
Source: newspapers

2. March 21, 1925 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank was forced to close after rapid deposit withdrawals and concerns over management under Hastings; state examiner later assigned deputy to take charge.
Newspaper Excerpt: Deposits began to decline after Hastings became connected with it, and on March 21 the bank was forced to closed.
Source: newspapers

3. June 2, 1925 Receivership

Newspaper Excerpt: L. R. Baird, general receiver of closed banks, has taken over the New England State Bank, Gilbert Semingson, state examiner, announced Friday.
Source: newspapers

Newspaper Articles (5)

1. April 2, 1925 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, April 2, 1925

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Article Text

McANENEY NAMED CHIEF DEPUTY STATE EXAMINER F. B. McAneney of Devils Lake has been named chief deputy state examiner in the office of Gilbert Semingson, state examiner. The position was formerly held by Lars Wambheim, now in California. Other appointments are as follows: Deputy bank examiners, E. S. See, Minot; James M. Shirek, Bismarck; J. L. Mcrae, Devils Lake; F. J. Seeba, Harvey; O. A. Engemoen, Valley City: J. K. Nesvek, Grand Forks; O. H. Erickson, Bismarck; county examiners, James A. Brown, Rolla; John R. Snyder, Bismarck; T. J. Hagen, Grand Forks; Thomas G. Ahren. Mandan. A deputy examiner has been assigned to go to New England, N. D., and take charge of the affairs of the New England State bank, which was : closed Monday following a run.

2. April 3, 1925 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, April 3, 1925

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Article Text

PEOPLE SEEK REASONS FOR BANK CRASH Depositors of Institution in Hastings Demand State Probe WANT FULL PUBLICITY Publication of Statement of Condition Caused Sudden Run and Closing New England, N. D., April 3.-Indignant depositors and stockholders of the New England State bank, closed Tuesday following a three day run presipitated by publication of the first statement of the bank's condition since it passed under the control on Feb. 15 last, of J. J. Hastings, formerly in Nonpartisan league banking circles. demanded late yesterday that the state banking department take every possible step to determine if any illegal practices were resorted to in the condition of the institution and to punish guilty parties if any there be. About 50 depositors attended the conference, held during the afternoon as the culmination of a rising tide of indignation at the closing of the institution which was in excellent condition only a few weeks ago, and which went into the hands of a receiver because of the remarkably rapid change in its status during the period it was under the control of Hastings. Hastings, who was in New England for a few hours Tuesday, has been absent from the city since the bank closed, while F. C. Proehl, a cashier placed in the bank by Hastings, departed today for Minneapolis, Salesmen of stock in the bank and in a holding company known as the Bankers Investment company of Minneapolis have been out of the territory for some time after they failed of receiving the sort of reception they had anticipated. Demand that full publicly be given concerning the condition of the bank when it closed is contained in resolutions adopted by the depositors' conference. Mayor M. H. Elliott as the spokesman of the enraged depositors insisted that the community had been made to suffer the damage incident to the closing of the bank through elements that are entirely foreign to the local condition; that the business conditions here are good, and the bank in a strong, healthy condition just a short time ago. A committee consisting of E. L. Simmons, Angus McDonald, S. A. Fuller, Rev Joseph Pottgens and K. B. Elliott. was appointed to confer with the receiver and the state banking department, and to present the request for a full detailed statement to show just what was done with the bank's cash during the last few weeks it was in operation.

3. April 4, 1925 Morning Pioneer Mandan, ND

Article from Morning Pioneer, April 4, 1925

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Article Text

DEPOSITORS OF NEW ENG. BANK START INQUIRY PUBLICATION OF STATEMENT OF CONDITION CAUSED RUN AND CLOSING New England, N. D., April dignant depositors and stockholders of the New England State Bank closed Tuesday following a three day run precipitated by publication of the first statement of the bank's condition since it passed under the control, on Feb. 15 last, of Hastings, Tormerly notorious in Nonpartisan league banking circles, demanded to day that the state banking department take every possible step to determine if any illegal practices were resorted to in the condition of the in stitution and to punish guilty parties if any there be. 50 Depositors Attend About 50 depositors attended the conference, held during the afternoon as the culmination of a rising tide of indignation at the closing of the in stitution which was in excellent con dition only few weeks ago, and which went into the hands of re ceiver because of the remarkably rapid change in its status during the period it was under the control of Hastings. Hastings, in New England for a few hours Tuesday, has been absent from the city since the bank closed, while F. Proehl, a cashier placed in the bank by Hastings, departed today for Minneapolis. Sales men of stock in the bank and in holding company known as the Bankers Investment company of Minneapolis have been out of the territory for some time after they failed of receiving the sort of reception they had anticipated. Demand Full Publicity Demand that full publicity be given concerning the condition of the bank

4. June 2, 1925 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, June 2, 1925

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Article Text

STATE TAKES SLOPE BANK Baird in Charge of Institution at New England L. R. Baird, general receiver of closed banks, has taken over the New England State Bank, Gilbert Semingson, state examiner, announced Friday. The state banking department withheld action for six weeks while efforts were being made to reopen the bank, or place it in such condition that it could be sold to another bank. Negotiations toward this end may yet be completed, according to banking department officials, who will place facts in the case before the attorney general for such action as he may see fit. The New England State bank was taken over last winter by J. J. "Jack" Hastings, once a vicepresident of the defunct Seandinavian American bank of Fargo and active in other "league" banks which A. C. Townley and other Nonpartisans sought to organize in various parts of the state. An eight cylinder sedan, in which Hastings and one of his associates drove into New England shortly before a meeting on Feb. 18, when the deal for control of the bank was completed, was attached by a New England garage for a repair and garage bill amounting to $206.62. At the time of the transfer of control of the bank, Hastings," who was associated with twin city men, induced the directors to accept his plain note and that of the Bankers Holding company, said to have been organized by him, in payment for stock in the institution. Hastings made an impressive reentrance into North Dakota banking circles, which was short-lived. He informed acquaintances that he and his' associates were ready to spend $1,000,000 in the state acquiring banks. The New England bank was the first and only one purchased. Deposits began to decline after Hastings became connected with it, and on March 21 the bank was forced to closed. Hastings was a figure in the socalled "endless chain" system of organizing farmers banks in the state several years ago, during the heyday of the Townley regime, when, it is alleged, the scheme to buy control of one bank, hypothecate the stock

5. October 23, 1925 The Producers News Plentywood, MT

Article from The Producers News, October 23, 1925

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HASTINGS HAS BONANZA MINE DECLARES CAN PAY BANK DEPOSITORS SOON HE SAYS ON ARRIVAL IN STATE. * * Fargo, N. D., Oct. 20.-"If I live until spring, I'll pay off every depositor of the New England State bank," said J. J. Hastings upon his arrival at New England, N. D., today, to answer charges of embezzlement and grand larceny growing out of the closing of that institution last March, the Fargo Forum says today. "I'm making lots of money 1 now, he said, "and can make the * grade in that time." Hastings arrived in company S with L. V. Duncan, deputy sheriff, and left about noon for Mott, d where he is to be arraigned beit fore Justice Dewey later today. State's Attorney J. K. Murray S. * said this morning that his trial d would likely not be had until the f February term of district court. Hastings declares, according to the Forum, h has struck a rich ore vein in Pischastin Creek section of the mountains, about 3 hours run from Seattle. His parte ner is Fred Karns and, accordSing to him, they have made a rich strike in Manganese ore. to They also have a smelter going, y and smelt about five tons a day, n * at a profit of $42 a ton, according is to Hastings. * *