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RUGBY BANK IS CLOSED Washington, Jan. 4.-The First National bank of Rugby, N. D., closed its doors today by order of its own directors and the comptroller of currency has appointed George W. Swords as receiver.
12576. First National Bank (Rugby, ND)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- national
- Bank ID
- 6341
- Charter Number
- 6341
- Start Date
- January 4, 1909
- Location
- Rugby, North Dakota (48.369, -99.996)
Metadata
- Model
- gpt-5-mini
- Short Digest
da8e53c4
Response Measures
None
Receivership Details
- Depositor recovery rate
- 42.0%
- Date receivership started
- 1909-01-04
- Date receivership terminated
- 1919-10-31
- OCC cause of failure
- Fraud
- Share of assets assessed as good
- 43.9%
- Share of assets assessed as doubtful
- 26.5%
- Share of assets assessed as worthless
- 29.6%
Description
Bank was closed by its directors and placed in hands of a receiver on Jan 4, 1909. Closure resulted from fraudulent/embezzlement-like actions by cashier/president A. H. (Andy) Jones (missing at time of closing); no run is described. Receiver George W. Swords appointed; dividends were later declared (25% then additional). Jones was later captured and prosecuted.
Events (4)
1.
July 17, 1902
Chartered
- Source
- historical_nic
2.
January 4, 1909
Receivership
- Source
- historical_nic
3.
January 4, 1909
Receivership
- Newspaper Excerpt
- The comptroller of currency has appointed George W. Swords as receiver. The affairs of the First National bank of Rugby ... are in a bad tangle ... Cashier Andy Jones has been gone for a week and the officials ... do not know where he has gone. ... The immediate cause of the closing of the bank was the fact that some notes were presented for payment that were not of record at the bank. The notes had been given by Jones as a private individual and had been endorsed by him as a cashier.
- Source
- newspapers
4.
January 4, 1909
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Irregularities and fraudulent/unauthorized notes issued by cashier/president A. H. (Andy) Jones; Jones disappeared prior to closing and bank examiner found tangled affairs and irregularities.
- Newspaper Excerpt
- RUGBY BANK IS CLOSED Washington, Jan. 4.-The First National bank of Rugby, N. D., closed its doors today by order of its own directors and the comptroller of currency has appointed George W. Swords as receiver.
- Source
- newspapers
Newspaper Articles (22)
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Condensed Telegrams Five Persons Were Injured in holiday coasting accidents at Tuxedo: William Stellenwerf, a race track plunger, committed suicide by firing both barrels of a shotgun into his head. Guglielmo Ferrero, lecturing at Columbia university, depicted Nero and St. Paul as collaborators," and denied Nero set fire to Rome. The First National Bank at Rugby, N. D., has been closed by its directors, its deposits amounting to $249,468, with a capital of but $25,000. Columbia University Has Given the degree doctor of letters to Signor Gugleilmo Ferrero, an Italian historian, lecturing in this country. Secret Service Men at Chicago are hunting a widow in green" who has been running a blackmailing game, with wealthy. persons as the victims. A Special Examination of the affairs of the bankrupt firm of A. Boqth & Company of Chicago has been asked to account for $692,374 not shown on the books. Richard Croker, as the guest of Andrew Freedman, left New York Monday morning for Palm Beach, where he will remain three months at Mr. Freedman's cottage. Four Persons Were Badly Hurt in a gas explosion in a house at New Martinsville, W. Va., occupied by J. H. Bridgeman and G. C. Garrett, the house being wrecked. Hattie Forsyth, a Broadway, New York, show girl, who said she is to be married this month, said it was not to "Tony" Drexel, the young son of A. J. Drexel, of Philadelphia. Walter McGreal, 20, and Hazel Hall, 17. left their homes in Brooklyn on Christmas day and are supposed to have elpped. Mrs. Hall employed detectives to track the couple. Triplets Were Born to Mr. and Mrs. Walter Fortune at their home. 158 Farrington street, Flushing, Queens. Monday. This is the third set of triplets born in Flushing within a year. The Dinner, Ball and Reception at which Miss Marjorie Gould will be formally /introduced to society on Thursday night is expected to be one of the most lavish affairs ever seen in New York society. Richard Canfield, who moved into the handsome residence, 9 East 55th street, nearly three years ago, has suddenly closed the house. stored the costly furnishings and sailed for Europe. Signs were nailed up Monday announcing that the house is for rent. Charles G. Wridgeway. president and manager and director of the Peerless Motor Car company, at 202 West 41st street, New York. and living at 413 Convent avenue, was arrested in his home Monday evening on the complaint of his wife, who charged him with assaulting her.
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Rugby Bank Closes Andy Jones Bank at Rugby in Hands of Receiver G.W.Swords-Maybe in Bad Shape— Jones Out of Town ago. Jones is a man of powerful The First National bank of Rugby friends and powerful enemies, and whose president is tht famous Andy while some assert that the bank is Jones, closed its doors Monday in bad straits, the depositors do not morning shortly after the cashier seem to be worrying, and hope the had opened for business. Several bank will pay out dollar for dollar. deposits had been received before George W. Swords of this city the doors were closed and the ashas gone to Rugby as Receiver of sistant cashier, without placing a the defunct institution. notice on the door, went home. Mr. Judge N. Davis is now visiting Jones, we understand, was out. of relatives in Pennsylvania and Dethe city at the time. The bank examiner visited Rugby a few days leware.
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Rugby, N. D., Jan. 7:--The Barton State bank, located twelve miles from Rusby, has been cloced after an exeiting run which followed News that the Firet National bank of Rugby had gene into the hands of a receiver. Andy Junee, the unleeing enettler of the Rugby bank, was president of the Barton bank. Deputy Bank Examiner Walter Doheny has taken charge of the bank and is checking up the accounts, Receiver Bwords to at work checkins up the accounts of the national bank. Another bis bunch of notes given by Jenes as an Individual and endorsed by himself as eashier, were received yesterday at the bank. He. delver Swords has ruled that unless the notes are of recard in the bank none of them will be honored, Unless the bank la Involved heavily In some other direction It is belleved the depositors will be paid in full. The exact condt. tion of affairs w!!! not be known for several days. No nows has boon received from Jones. He has hot been heard from for over a week. Bank depositors have about given up hope that he will return. Jones' friends maintain they have not heard a line from him and they are as much mystined by his dls. appearance as anyone.
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BANK CLOSES ITS DOORS. Failure of First National Bank at Rugby, No Surprise to Officials. Washington, Jan. 5.-The First National bank of Rugby, N. D., closed its doors today by order of its own directors and the controller of the currency has apointed Geo. S. Swords as receiver. The bank has a capital of $25,000 and deposits to the amount of $249,468. It was in trouble some months ago, and its failure is no surprise to the treasury officials.
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A. H. JONES OF RUGBY MISSING Affairs of First National Bank in Tangled Condition and Receiver Named. A. H. Jones, mayor of Rugby and cashier of the First National bank of that town, is missing and the bank. has been placed in the hands of George W. Swords of Minot as receiver. The following special from the Grand Forks Herald of Tuesdav tells of the closing of the bank: The affairs of the First National bank of Rugby of which Andy Jones was cashier, are in a bad tangle according to information received in Grand Forks last evening. The doors of the bank were closed yesterday by Dr. I. M. McBride, president, acting upon order of the board of directors, and the comptroller of the currency has appointed George W. Swords of Minot as receiver. Cashier Andy Jones has been gone for a week and the officials of the bank state that they have not heard from him and do not know where he has gone. They believed when he went away that he was going east to seek to straighten out the tangled condition of the bank's assets. The immediate cause of the closing of the bank was the fact that some notes were presented for payment that were not of record at the bank. The notes had been given by Jones as a private individual and had been endorsed by him as a cashier. Just how badly the bank is involved is problematical. If the bank is to be held responsible for all the paper issued by Jones it is feared that it will come out of the receivership in bad shape. The bank had a capital stock of $25,000 and its last statement showed deposits of $200,000. Jones has been mayor of Rugby. He was interested in lands and was reputed to be wealthy. He was a resident of Grand Forks a few years ago and is well known in the state. The bank was inspected by an examiner about two weeks ago and at that time it was stated that certain irregularities were discovered which would mean the closing of the institution.
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North Dakota Bank Closes. The First National Bank of Rugby, N. D., closed by order of its own directors and the comptroller of the currency, has appointed George W. Swords as receiver. The bank has a capital of $25,000 and deposits of $249,468.
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been completed. Mott.-N. P. surveyors are still at work in this vicinity Fargo-Fargo gets the meeting of the state veterinary association Jan. 61 XIS 102 Waller months in jail for assaulting the town marshal. auo serienced ssog man from twenty to thirty years in the pen for robbery Washburn.-There were sixteen criminal and more than 100 civil actions on the calendar мои 10 dequinu telephone lines have been constructed lately south of here. Flasher.-This place is to have two banks, articles for the incorporation of both having been filed Jamestown.-Bailey Fuller is reported to have the finest water in the state in a spring on his farm-near here Rugby.-The county division strug gles in Ward county were such that one man near Stanley became insane over the affair. Jamestown.-A man and woman left the city mysteriously leaving their baby 19 days old, to be taken care of by the county North Dakota has about reach the limit on the organization of new counties until some of the largest of the present ones can be divided Monango.-The Journal tells about e JOAO Supq8y иэш OM) getting chewed up-one on the finger and the other on the snoot The public market day at Mott, Saturday attracted the biggest crowd ever gathered in the town, with pos sibly a Fourth of July exception, and the business men want some more. Devils Lake-Senator Hansbrough, who has been ill at Asbury hospital, SIMOIS sp Physicians and hospital attendants have strong hopes for his complete recovery He is still very weak. however, and it will be some time before he can leave the hospital Grand Forks.-In only ten counties in the state were new superintendents of schools elected. In thirty-two counties the officials were re-elected and in two others superintendents who had formerly held the positions some years ago were chosen. Jamestown. Arrangements have practically been completed for the engagement of P. J. McClory to as sist the state's attorney in the prose cution in the case of the state against W S. Howard for the murder of A. jo couple B here 10 the Thonas "I months ago. Rugby -The Balfour Coal Mining company has been or ganized out in Ward county with an authorized capital of $500,000 Among the incorporators are a couple of mine operators from Missouri and an elevator JO 118 eleverors 18 SUMO that шлу which are handling coal Rugby.-The affairs of the First National bank, of which Andy Jones, was cashier. are in a bad tangle according to information received in Grand Forks last evening The doors of the bank were closed by Dr I. M McBride assistant cashier, act ing upon order of the directors and the comptroller of the currency has appointed George W. Swords, of Minot as receiver. Maxbass disastrous fire which started by the explosion of a gasoline lamp in the dining room of the City restaurant. in which several persons were sitting broke out Friday night The City hotel, restaurant a barber shop and a rooming flat were totally destroyed A butcher shop and a pool room were badly damaged. The Renville Mercantile Co.'s big store was saved after hard work Fargo.-A personal check for $1,000 for the relief of the Italian earth quake sufferers was forwarded by Rt. Rev John Shanley, bishop of the Catholic church of North Dakota, to the National Red Cross society. He also ordered that a special collection be taken simultaneously in every Catholic church in North Dakota on Jan 17. Other churches are taking like action to aid the earthquake sufferers Dunseith.-The Magnet prints a photograph of a street scene in Dunseith taken the day before Thanks giving. Windows and doors were open and people were out without coats, and ladies with white dresses The climatic effect is decidedly sum mery. Light clothing has been quite comfortable in any week since that time, but just at present a fur coat seems to be more in keeping with the conditions. Taylor.-The Farmers State bank which was recently incorporated has just completed a brick building and expects to be ready for business soon after the first of the year Devils Lake.-It is probable that Mrs. Wright will be tried here on the charge of murdering her adopted daughter-and no change of venue will be taken as was planned Russell.-A child of Emil Luedtke was playing with & cat when the feline sprang at the youngster and inflicted painful scratches that may STATE up result Oakes.-Oakes is to have a new hotel this year The plans call for an L shaped building 50x110 feet, three stories and basement, containing 50 rooms. The hotel will be known as the New Argyle. Minot.-Judge Goss certainly hand оцм Connoy Puttip 01 package E pe
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News of the State McHenry is to have. a band. There was a cloud burst at Oakes. The Express wants a nour mill for Buffalo. . Minto is to have four blocks of new cement side walk on both sides of the street. A number of lodge organizers are working in the state this summer. The editor of the Hunter Herald claims to attend Sunday school. A candy factory is to be established at Minot. July 22d is the date of the Fargo commission election. A large number of harvest hands are headed for North Dakota. Minot has a popular summer amusement resort in wild wood park. The county jail at Minot continues to keep well filled. The defunct First National bank of Rugby. has declared a dividend of 25 per cent. A new church was dedicated at Towner on the Fourth of July North Dakota may not be the greatest alfalfa producing state in the Union but it is an undisputed fact that this important product can be grown with success here. . Kenmare is to have a base ball tournament. A creamery is to be established at Washburn. Most of the weekly papers are waging war against the rank growth of weeds this summer A national bank has been founded at Stanley. Dairy Commissioner Flint is being liberally praised by the state press for his earnest efforts in behalf of North Dakota creameries. Editor Haskett formerly of the Souris Messenger has assumed a position with the Grand Forks Herald. Two little children at Kenmarebrother and a sister-were run over by a train at the same time while playing on the railroad track. Some of the weekly papers think that if the Wright Brothers would pass over North Dakota in their aeroplane at this time the state would appear to them as one great green garden. Supt. Stockwell has recently been delivering addresses to the teachers attending the various summer schools of the state. At Fairdale a newspaper man was placed in charge of advertising the Fourth-of-July celebration there and as a result the town had the largest crowd ever seen there on any occasion. The Walsh County Republican at Grafton is backed by a stock company of sixteen members and the editor of that paper wants the people of the town to help make it the greatest weekly paper in the state. An Irish lad of twenty-three and a buxom German woman of fifty entered into a. conubial contract at Minot and kept the matter secret several days before their friends became wise. The Ward county commissioners have decided to build ten thousand dollars worth of substantial buildings upon the county poor farm. Inclement weather caused the big race week at Leeds to be postponed for several days. The lid has been fammed down tight on the sale of beer in Bowman county and all gambling devices have been turned to the wall. Twenty five hundred Indians are camped near Devils Lake attending mission services. Whether it is contempt for the trusts or either a smoothly written local for independent con-
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Government Sleuths, After Search of Six Months, Run to Earth Absconding Cashier of First National Bank of Rugby and Head of Barton State Bank. WILL BE BROUGHT TO N. DAKOTA Details of Capture of Dakota's Frenzied Financier Are Meagre, But Federal Officials Here Are Assured That the Defaulter Is in Arms of the Law. While Jones will be prosecuted for Andy Jones, North Dakota's frendeals in connection with the First Nazied financier, is under arrest. The tional bank at Rugby being the only Rugby banker who is credited with matter in which the federal officials promoting the most astounding deals in the history of the state, has been have jurisdiction, his bond floating in connection with the "sheep ranch" is grappled by the strong arm of the fedsaid to have cost eastern and middle eral authorities. state capitalists thousands of dollars. After being traced for six months The last heard of Jones was at Minby secret service men and detectives, neapolis the first week in January Andy Jones, ex-cashier of the First when he drew a check of $7,000 on the National bank of Rugby, N. D., president of the First State bank of BarFirst National bank of Rugby. At that time he dropped out of sight. The ton, N. D., and promoter of the "Jones doors of the bank closed and on Jan. 4, sheep industry," was yesterday placed George W. Swards of Grinnell, Ia., who under arrest and is now held in jail in was in North Dakota closing up the Texas, awaiting an order or removal affairs of the Minot National bank, was to North Dakota where he will be forcappointed receiver. One dividend of ed to answer for what is considered 25 per cent WS recently paid on deone of the most collosal frauds ever posits. disclosed. Very shortly after the failure of the Nothing but the mere statement that Rugby bank, the First State bank of Jones had been apprehended and was Barton, N. D., of which Jones was under arrest, were received here late president, failed and Walter Dohney yesterday afternoon. While federal was appointed receiver. officials have been scored for not laying Federal indictments were returned hands on this man, they have been against Jones by the last U. S. grand steadily at work, not to cease until jury and bench warrants issued for their efforts were crowned with suchis arrest. cess.
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ANDY JONES IS CAPTURED Fugitive Rugby (N. D.) Banker Taken After Long Chase. Fargo, N. D., Aug. 21.-After eight months' chase Andy H. Jones has been captured in Texas. He was president of the First National bank of Rugby and disappeared just before the holidays. When he failed to return an examination disclosed that the bank had been wrecked and a receiver was appointed, who has since declared a dividend of 25 per cent. The State bank of Barton was also closed, as it was under the same management.
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Anxious to See Mr. Jones. Andy H. Jones. the defaulting president of the First National bank of Rugby, who recently was captured in Texas, will reach Fargo this week in custody of Deputy Marshall of the Lone Star state. The receiver of the bank and other federal officials are extremely anxious to get Jones' assistance in straightening out the bank's affairs.
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Butler & Swords Locate Here Chicago Mortgage Bankers Start a Branch at Minot-J. Erickson in Charge-Future Looks Bright The well known mortgage bankers Erickson will make a successs of the undertaking, is a certainty. Butler & Swords, whose executive offiMr. Butler, president of the comces are docated in the First National pany, was a Minot visitor last week, Bank Building, at Chicago, have openand looking the field over, believes ed & branch office in Minot. that the Minot branch will within a Mr. Jed H. Flannigan, Assistant very short time, rank with the best of General Manager of the firm, has those conducted by the company. Mr. been in this city for several weeks, in Butler is very well known to the the interests of his from, superintendfinancial world, being president of ing the launching of this business, in three well known Illinois banks. the new field. The firm of Butler & Swords, in a This concern has branch offices at financial way is as solid as the Rock Ellisville, St. David and Glassford, III, of Gilbralter, business always been all in the famous corn belt of Illinois, conducted in a conservative way. at Clinton, Ia., and at Minot. They are members of the Association Geo. W. Swords, one of the memof Commerce, a body which comprises bers of the firm, is well known in Mibusiness men of the best standing. not, having made this city his headThe association itself has been one of quarters for several years, as Receiver the biggest factors in the developof the Minot National bank, and in adment of 'the west. At present it is dition, to that position, he was recenterecting a three million dollar club ly appointed Receiver of the First house in Chicago. Such men as National bank of Rugby, N. D. As ReJames B. Forgan, president of the ceiver of the Minot National Bank, Mr. First National Bank of Chicago, whose Swords made an enviable record, the deposits aggregate two hundred milbank fhaving already paid the deposlion dollars, are members. itors ninety per cent, with prospects The object, naturally in opening the for the entire amount in the near fubranch office in Minot, is to get into ture. closer touch with the farmers, and Mr. Swords recently bought the this will enable the company to make property at the corner of First and loans strictly on their merits. Reishus streets, which was considered Mr. Flannigan left for his home at a far sighted purchase, and the comOhicago Monday night. To an Indepany will conduct their business at pendent representative, he expressed this location, as soon as the building himself, in a very optimistic manner, can be enlarged. Thus, the Butler & concerning the futury of Minot and Swords concern intend to make Minot northwestern North Dakota. He is a a permanent branch for their growing keen, far sighted young business man, business, and have shown good judgand the only regret that the Indepenment, in selecting so progressive a dent has, is not to remain here pergrowing city. manently. The business however has J. A. Erickson, well known in this been left in good hands, and already is part of the state, has been engaged to moving along at a rapid pace. manage the Minot branch. That Mr.
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The annual report of the state treasurer's office for the year ending October 31, 1909, was submitted to Governor Burke Saturday afternoon by State Treasurer Bickford, and to those interested in the finanacial af: fairs of the commonwealth, it furnish es many items of interest in a detailed and concise form, which is a marked improvement over the financial reports heretofore published by the state departments and institutions. The form adopted by State Treasurer Bickford gives a detailed statement of the income and disburse. ments of the state treasury, that of the income being shown under a separarate heading with the various subdivisions, while the expenditures are shown under fifty-five different headings and subdivisions. The form in which the report is presented is one approved of by up-to-date financiers and expert accountants, and while it does not take as much room in the printed book as the old form, its several items are before the reader in such a way as to be clearly understood by the laymen who must necessarily have more than an ordinary knowledge of the affairs. The report shows that the cash transactions during the year November 1, 1908, to November 1, 1909, amounted to $5,170,916.29. The cash receipts during the periol was $4,588,010.70, as compared with $2,259,668.84 for the previous period; an increase of $1,011,937.28. The report shows that the interest on deposits of state funds in the various banks during the past year. a The net increase of $15,042.03. amount received as interest on deposits for the previous period being $28,087.78, as compared with $43,129.81 collected during Mr. Bickford's first year in office. The increase is accounted for by there having been a larger general cash balance on deposit and also owing to the fact that a more careful and rigid check was kept by Mr. Bickford on the interest due from the various banks. Mr. Bickford's report shows that there is due from suspended banks the sum of $22,265.90, of which $12,113.46 is due from the First National Bank of Rugby, and $10,152.44 from the State Bank of Barton. This amount is not now available, but suits are pending in the district court looking to the collection of this money from the bondsmen who became sureties for the bank. The state has already realized a dividend of 25 per rent from the Rugby bank, which reduces the original balance of $16,. 151.14 to the present amount. Mr. Bickford's report shows the bonded indebtedness of the state to be $1,151,300. The report of a predecessor in office for the year 1908 gives the bonded indebtedness in the sum of $692.300, overlooking an indebtedness of $459,000 for which the state is responsible and on which it pays interest at the rate of 4 per cent per annum out of the various funds. Mr. Bickford shows that all of the bonded indebtedness is held by the common school funds of the state except bonds amounting to $324,600, which are held by eastern investors, the interest on same being paid semiannual through the Chemical National Bank of New York City, at an expense of $16.23. There is considerable speculation on the part of persons interested in
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Continued from Page One. cashier of the bank, he stated that t) Ely in note and the Ely-Hall note we the First National bank of Rugl when the receiver took possession at never had been paid. Another Fraudulent Note The last witness called by Ass Dist. Atty. W. H. Barnett before tl noon recess was Atty. P. J. McClory Devils Lake, signer of an "accomm dation" note for $2,000. He stated substance on the stand: "On March 27, 1908, I was call over the long-distance telephone Rugby, I thing Mr. Elstad was ti person talking. I was told to come the First National bank. When I à rived I saw Elstad, who directed n Jones. to the directors' room where I m "Jones told me that the other tv banks were trying to make trouble f his bank, through runs I believe. I asked me to sign an accommodati note for $2,000, promising that I wou never have to pay it and that would be returned to me, after th had been tided over the trouble. received a written receipt in the han presence." writing of A. H. Jones, written in n At this point he exhibited the r ceipt which acknowledged the no and agreed that it would be return to him without payment. This w ment. offered in evidence by the gover On cross examination he stated th he had known Jones probably t years, that they were friendly. T attorney for the defense also broug out that he had signed a similar no for the Burton State bank, for whi he had received no consideration. T1 wards. was negotiated a few months afte Assistant Cashier Elstad was jt seated in the witness chair when Jud Amidon announced the noon rece Bankers on the Stand, The first witness called this morni by the government was E. J. Ritcl of the German-American National ba of Little Falls, Minn. He told of di counting the following notes for First National Bank of Rugby: E. I stad, $1,000; Dave Donely, $2,500; Q. Roar. $1,000. All of these he stat were finally paid. The defense waived cross examin tion of this witness. A series of chec payable to the German-American ba were then identified by Elstad. Elstad Not Cross Examined When this witness completed 1 identification, Judge Barnett annour ed that he had finished for the pros cution. Elstad has been on the sta eight times during the past two da Prior to this an agreement was read ed to conduct the cross examinati all at one time. He was now curr over to the defense, but by motion 11 cross-examination was postponed. Nels M. Evanson of the First Natio al Bank of Osakis was called and to of accepting a note signed by in Storck and Guerin of Brainerd, Min n in place of certain notes held by hi which had been purchased by Jon Jones' Official Position, From the minutes and Assista Cashier Elstad, Andy Jones' office position was established. It was sho that during all the time questi that he had held the office of cash and general manager of the First N tional Bank of Rugby and that he h stitution. entire charge of the affairs of that to The Bankers' Position. in 0There is probably over a dozen bar a ers from all over the northwest atter 1 ee ing the trial as witnesses, having ed some dealings with Andy Jones. eThe Forum this morning one of most prominent members said: is It is doubtful if any-at least vi nd few-of the banks buying the no offered by the First National ba ne of Rugby should be censured for ice ing SO, as they exercised ordin res se, business caution in purchasing paper. Many of them have alre been reimbursed and some of th are secured in other ways. The me ods of this banker were so audaci an that even some of the most car its financiers were deceived, but t in have taken every possible step to I ntect themselves and the patrons ill their institutions. The situation he such that there, should be no app the hension on the part of those hav interests in any of the instituti ent which may at one time have purch ored this alleged fraudulent paper. Friday Afternoon. That Andy H. Jones, ex-cashier 9 the defunct First National bank Rugby, N.-D., used. the credit of . institution which he represented raising over $34,780 which when ceived was applied to his personal count, was the main feature of the timony offered in sthe federal e Friday afternoon in the case of government against A. H. Jones. With bankers here from all over northwest; financiers who head strongest institutions in this section the country, who dealt with the Ru banker during his meteoric career in Fargo, a half dozen having testi That Jones' manipulations are wordbox of credit, the class where they long, was verdict of the crowd of si tators that thronged the court ro With the seldom frequented p crowed to its capacity, Judge Cha F. Amidon stationed bailiffs at e door, refusing admittance to all cept witnesses or jurors. At the close of the first days ba with imprisonment in the federal p tentiary or the liberty of man stake, Asst. U. S. Atty. W. H. Bar expressed satisfaction with the prog
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# GOVERNMENT WEAVING # TIGHT NET AROUND # BANK WRECKER Continued from page One to help Jones personally that he signed the note. On re-direct examination Bouye brought out the infor nation that his brother, Pat Bouye, who also signed a note for Jones, owned no property. Chauffer Signed a Note. E. E. Simonton, former chauffeur for Andy Jones, gave important testimony for the prosecution. Simonton worked as janitor of the Rugby schools at $75 for a time and then went into the employ of the defunct banker at the same stipend. It was while serving in this capacity that he signed an accommodation note for $2,400, for which he received nothing, being assured that he would never be able to pay for it. He testified that he owned no property and had paid nothing on the note, which is also held by the receiver of the bank. This Witness Couldn't Hear. The climax was reached this morning when Dave Donely, a farm laborer, who during the est season's of the year never made more than $35 a month, told of signing a note for $1,900 at the request of Andy Jones. Donely is an aged man and on taking the stand informed Judge Barnest that he was hard of hearing. Taking a position right by the man's ear, the assistant prosecutor brought out a line of testimony that impressed the jury. Donely stated that he worked for Jones most of the time as a farm laborer, "receiving the going wages." On further questioning he stated that was $35 in the summer time and nothing in the winter. The cold months were spent in trapping by Donely. "What did you make trapping?" was asked. "I wasn't very successful," was the reply. Engerud Makes Objection. At this point Judge Engerud for the defense offered an objection, in line with scores of others made, contending that the testimony had no bearing on proving any charge in the indictment and was therefore irrevelent and immaterial. Judge Barnett argued that it came under the first count of embezzlement of $30,000. That court overruled the objection holding that it also showed Jones' intent in other dealings. Fargo Man Implicated. The last important witness called by the government this morning was W. George Mahon. He testified that he was a personal friend of Jones, being intimately acquainted with the defendant. On May 5, 1908, he told of receiving from Jones personally at his (Mahon's) Fargo office, a certificate of deposit for $1,710, on the First National bank of Rugby, made in favor of Mahon. An understanding was reached that Mahon was to sell this and return the proceeds to Jones. The certificate was sent to Mahon's brother at Inkster where it was marketed, and $1,650 returned to George Mahon at Fargo. Mahon sent Jones a check for $1,600. holding out $50 which he stated that he had advanced before. The witness was excused long enough to get the check from his office, which was offered in evidence by the government. The only fact brought out on cross-examination was that the deal was carried out to raise money for the Rugby bank. Elstad on Stand, Too. On three different occasions E. J. Elstad, who, under Jones' regime, was assistant cashier and bookkeeper of the bank, was called to the stand by the prosecution. In each case he testified concerning the notes and certificates. The proceeds of all notes which Jones received, after being discounted by the bank, were invariably credited to Jones' personal account. Elstad testified that Pat Bouye, the Fred Ely and Frank Athearn notes were in the defunct bank when taken charge of by the receiver. Other note signers told on the stand that the paper which they had signed had never been paid.
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REPORT OF STATE TREASURER Year Ending October 31, 1909. TREASURY DEPARTMENT, STATE OF NORTH DAKOTA TREASURER'S OFFICE Bismarck, November 1, 1909. To His Excellency, John Burke, Governor of North Dakota. Sir :-In accordance with requirements of law, I have the honor to submit herewith my annual report of the financial transactions of the State for the period ending October 31, 1909. In compiling the within report I have made a marked departure from the form of previous reports and in addition included a complete itemized statement of Income and Expenditures for the past twelve months. The total cash transactions of this office for the past fiscal year exceeds the previous one by $1,011,937.28 as shown by the following tables: TOTAL CASH RECEIPTS AND PAYMENTS. $ 799,310.17 Cash on hand November 1, 1907 3,259,668.84 Receipts $4,058,979.01 Total $3,476,073.42 Payments 582,905.59 Cash on hand November 1, 1908 $4,058,979.01 Total $ 582,905.59 Cash on hand November 1, 1908 4,588,010.70 Receipts $5,170,916.29 Total $3,676,053.37 Payments 1,494,862.92 Cash on hand November 1, 1909 $5,170,916.29 Total INTEREST ON STATE BALANCES. Interest on deposit of state funds in the various state depositaries during the past year shows a gain from $28,087.78 to $43,129.81, a net increase of $15,042.03. This is accounted for inasmuch as the average cash balance has been larger for the past year and also owing to the fact that a more careful and rigid check has been kept of the interest due from the several banks. SUSPENDED BANKS. This report shows a cash balance of $12,113.36 due from the First National Bank, Rugby, North Dakota and $10,152.44 from the Barton State Bank, Barton, North Dakota. These are the state balances still remaining in the above suspended banks, and said balances are not now available. Action has been brought against the several sureties on the bonds of these banks, and the action is now pending before the district court. The state has realized a dividend of twenty-five per centum, from the Rugby bank, said balance having been reduced from $16,151,14 to the present amount of $12,113.36. SECURITIES. At the present time the securities held by this office amount to $5,163,967.85 an increase of $805,555.00 over those held a year ago. This is the amount of the permanent fund of the common schools and state institutions, which has been invested by the Board of University and School Lands, and the interest accruing therefrom is converted to the use of the different institutions and common schools. Included in the above securities is $802,367.85, which has been loaned on the farming property of the state; an increase of $236,655.00 for the past twelve months. The first list given below shows the amount of securities held by the different institutions of the state, while the second table shows the nature of those held by the common schools. The common school investment amounts to $4,056,817.85 and the
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QUARTERLY STATEMENT State Treasurer G. L. Bickford has issued his official quarterly report showing the financial condition of the state of North Dakota for the quarter ending June 30th, 1910, togethre with the statement of the income and expenditures for the eight months since November 1, 1909. The report shows a total income of $5,401,020.68. Expenditures amounted to $3,458,563.37, the cash on hand scattered over the various state depositaries being $1,942,437.31. There was on deposit on the three Jamestown banks $36,892.89. Two banks, the First National at Rugby and State Bank at Barton, with deposits of $22,000, had suspended, their bonds ambunted to $68,500.
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Rugby Bank Creditors Gain. Washington, Aug. 25.-A second dividend of 15 per cent has been allowed to the creditors of the First National Bank of Rugby N. D., by the comptroller of currency, making a total of 40 per cent allowed since the bank went into the hands of a receiver on Jan. 4, 1908.
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SOME HISTORY OF RUGBY BANK FAILURE The First National Bank of Rugby became insolvent on January 4, 1909. At the time of its insolvency the bank was designated as a depositary of state funds in the amount of $10,000. On the day its doors was closed there was on diposit in the bank $16,147.12. The following bonds had been furnished by the bank as security for the deposits of the state: Federal Union Surety Company $10,000, Fidelity and Deposit Company of Maryland $5,000, American Bonding Company $8,000, and a personal bond for $10,000. A bond of the United States Fidelity and Guaranty Company was also deemed security for the deposits. Suits were instituted against the United States Fidelity and Company and Federal Union Surety Company, and the Fidelity and Deposit Company of Maryland to recover the entire amount of deposits in the bank at the time of its insolvency. Between the time that the affairs of the bank went into the Lands of its receiver and the time the cases were tried the receiver paid $6,460.45 in dividends. The cases were tried in April 1911, before Hon. S. L. Nuchols, Judge of the 12th Judicial District, sitting for Hon. W. H. Winchester, and it was held that the sureties of the bank were not responsible for the full amount of $16,147.12, but only to the extent of $10,000, which was legally on deposit in the bank at the time of its failure, and further held that the state was not entitled to apply the entire amount paid in dividends to the payment of the excess over $10,000, and that the amount paid in dividends should be apportioned between the state and the sureties, so that the entire liability of the sureties, after applying the share of dividends paid, was $6,645. Judgement was rendered for this amount against the Federal Union Surety Company and the Fidelity and Deposit Company of Maryland. The balance remaining unpaid with interest at the date of the entry of judgement. July 18, 1911, is approximately $4,000.
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MATTER WITH REFERENCE TO ANDY JONES INSTITUTION TO BLAME. BANK WAS DESIGNATED AS A DEPOSITORY OF NORTH DAKOTA STATE MONEY. Bonding Company Failed to Make Good the Loss of State Money Which Was on Deposit in Bank-Matter Has Been in Court Several Times— Bond Company restrained. Bismarck, N. D., Aug. 18.-On the strength of information from the United States treasury department at Washington Insurance Commissioner Taylor has suspended the Federal Surety Company of Indianapolis, Ind., from doing business in North Dakota until the demands of the federal government have been complied with. The letter from Washington states that the company has been ordered to suspend operations until a full investigation of its affairs may be made. The Federal Union is on the bonds of some county officers of North Dakota and is used by banks to secure the deposit of state funds. It had in risks in this state, according to its 1910 statement $57,500, and it collected in premiums $287.50. The state now has a judgment against the Federal Union Surety Co., on an indemnity bond for the defunct Rugby bank. Unless its matters can be speedily adjusted the company will be forced to the wall, and the bonds held in this state will be greatly weakened. It is highly probable that the state authorities will require new bonds as sureties where the distressed company is involved. The president of the Federal Union Surety company is Winfield F. Durbin, an ex-governor of Indiana and a man reputed to be worth a half million. The directors are men of large means and experience in business affairs and just how far the company is involved a federal examination will disclose. In the meantime no more business can be legally solicited in North Dakota by the company. The action is taken as a result of the affair of the First National Bank of Rugby, which became insolvent on January 4, 1909. At the time of its insolvency the bank was designated as a depository of state funds in the amount of $10,000. On the day its doors were closed there was on deposit in the bank $16,147.12. The following bonds had been furnished by the bank as security for the deposits of the state: Federal Union Surety Company $10,000, Fidelity and Deposit Company of Maryland $5,000, American Bonding Company $8,000, and a personal bond of $10,000. A bond of the United States Fidelity and Guaranty Company was also deemed security for the deposits. Suits were instituted against the
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BIENNIAL REPORT SHOWS EXPENSES Gunder Olson Tells of Condition of North Dakota Treasury. Bismarck, N. D., Dec. 12-Gunder Olson in his biennial report to the legislature shows that during the past two years the state has paid off $250,000 in bonds, some of them due in 1921 and running from that date to as late as 1926. The report also shows that there is a balance due from the defunct First National bank at Rugby of $3,066.29, this being an item that came to the office from a former administration and which has been cut down some during the past two years as adjustments have been made. The same condition exists as to the Barton State bank with the figures $1,522.87 at the time the report was made. The Medina State bank, the only bank to suspend business in the state during the period, which has not since opened its doors for business had a shortage of $1,394.01, but this amount had been paid by the bonding company by which the state was insured, a short time after the report was published, or to be exact on July 9. so the state did not lose by that failure. In his suggestions to the legislature as to amendment to the laws, Treasurer Olson states that he believes the bonds sold by the state should be of larger denomination as this will save a vast amount of labor not only in the treasurer's office but in the offices of the district town or county, and he alSO believes the county treasurers should be required to send in the interest collected on farm loans the same date it is received.