12593. Sawyer State Bank (Sawyer, ND)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
December 18, 1923
Location
Sawyer, North Dakota (48.090, -101.054)

Metadata

Model
gpt-5-mini
Short Digest
59cc933d

Response Measures

None

Description

Articles from 1924–1925 indicate the Williston State Bank was a closed/defunct institution whose collateral was bid in by the Depositors Guaranty Fund and turned over to the general receiver. No article describes a depositor run prior to suspension; a receiver was appointed and the bank remained listed among closed banks in late 1924, so this is classified as a suspension that resulted in permanent closure/receivership.

Events (3)
1. December 18, 1923 Receivership
Newspaper Excerpt
turned over to the receiver on December 18, 1923, before many of the charges of corruption were made and soon after L. R. Baird became general receiver.
Source
newspapers
2. December 18, 1923 Suspension
Cause Details
Bank was defunct/closed and its collateral was acquired by the Depositors Guaranty Fund then turned over to the general receiver; articles do not specify a triggering run or exact insolvency cause in detail.
Newspaper Excerpt
the collateral from the three banks at New Rockford, Williston and Sawyer, which was bid in for the commission, was turned over to the receiver on December 18, 1923
Source
newspapers
3. October 31, 1924 Other
Newspaper Excerpt
Closed banks which still hold deposits of the guaranty fund are ... Williston State Bank ... (audit as of Oct. 31, 1924).
Source
newspapers

Newspaper Articles (3)
1. October 14, 1924 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, October 14, 1924

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Article Text

200 BANKS IN N. D. SAVED BY GUARANTYBODY Claim Is Made That Closings Might Have Been Much Greater in North Dakota EXPLAINED CHARGES Members Had Collateral Bought to Conserve it For Closed Bank, Declaration With good crops in the state, deposits in banks increasing and individuals paying off debts, the banking situation has about righted itself, according to members of the Depositors Guaranty Fund Commission. With this situation existing there has been divulged by members of the commission many of the actions taken during the long period of anxiety in the state, and answers made to wide-flung charges of carelessness and dishonesty. The policies pursued by the commission, it is asserted by C. B. McMillan of Hannah, a member, probably prevented 200 to 250 additional bank in same policies closings resulted the in state. preventing The foreclosure proceedings against thousands of farmers in the state, who would have been driven from their homes, he asserts. The Depositors Guaranty Fund has not been wasted, and although the commission used some of the funds, under the law, to help conserve assets and prevent closings, virtually every dollar of the fund is intact, for the benefit of all depositors of closed banks, it is declared. of of of the Charges collateral corruption Bank in Bank the of New sale and Rockford, Williston State Sawyer State Bank were made under a misapprehension, with the commisto conserve the which now sion banks, acting is collateral in the hands for of the receiver of the banks, it is asserted. The Guaranty Fund Commission is composed of Governor Nestos, exofficio chairman, C. R. Green, manof the ex-officio ager member, Bank of Gilbert North Seming- Dakota, son, state examiner, ex-officio secretary, C. B. McMillan of Hannah and S. G. Severtson of Minot. M. R. |Porter of Minot formerly was a member. Preventing Closings One of the greatest accomplishments claimed by the commission for itself and other state officials was the agreement announced Satwill urday return whereby over-plus Twin collateral Cities banks to closed North Dakota banks. One of the main problems of the commission for the last 18 months was the prevention of bank closings and foreclosures. that from 200 to 250 were closings "I believe prevented by negotiations and offering to allow the bills to renew payable by holders with the and extend collateral, and conthe receiver to comsent promises," of declared Mr. McMillan. effect banks the chief who The were big outside bills foreclose the payable state holders didn't want to on notes held, the North they Dawota but farmers under the whose law if the other anyone than granted original made an maker-the extension to North notes originally were Dakota banks who borrowed from other banks and gave the notes as collateral security-the security holder became the owner of the note and could have no recourse on the North Dakota bank, it is explained This could be avoided in cases were where here. there the receiverships consent of the of banks by getting receivers. The Guaranty Fund Commission, cooperating in this manner, (Continued on page 3)

2. October 14, 1924 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, October 14, 1924

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Article Text

# 200 BANKS IN # N. D. SAVED BY # GUARANTY BODY (Continued from page one.) was able to prevent the foreclosure of thousands of farmers, and as a result many more thousands of bushels of grain were raised in the state this year, it is declared. Concentration Needed In this situation is seen by members of the Guaranty Fund Commission one of the big justifications for the bank administration law of 1923, which gave the jurisdiction of closed banks to the supreme court. It would have been wholly impossible to deal with the situation with 100 receivers and 16 district judges, it is asserted. With L. R. Baird as general receiver of closed banks, much could be done in this matter. A considerable amount of the Guaranty Fund was left with the individual banks, until it should be called for, for distribution. Some of these banks closed. The money helped others to weather the storm of financial depression by keeping up their reserve. Under the law, also, the Guaranty Fun Commission could use this money to protect assets of closed banks, by buying collateral. Under the law, the Guaranty Fund has a first lien on all assets of closed banks, to pay in the assessment to the Guaranty Fund. Receiver Baird has recognized this obligation, and the commission, therefore, will not have lost money by reason of banks closing, it is declared. The commission acquired some collateral, and this is being liquidated, so that it also will lose little, if any money, in this respect, it is asserted by members. Another charge was made that collateral of the Bank of New Rockford, Sawyer State Bank and Williston State Bank was sold at ridiculously low figures, and that members of the Guaranty Fund Commission bought it in for their own use. It now develops that the Guaranty Fund Commission, according to members, either bought this collateral itself or had its agents buy it, to conserve it for the defunct banks, and when the general receiver, L. R. Baird was named, it was all turned over to him. ## The Collateral Sales Members of the Guaranty Fund Commission had steadfastly refused to enter into controversy over charges made against it, one member declaring months ago he "didn't have to prove I am not stealing." Charges of fraud made long ago, called specifically to the attention of Mr. McMillan, a member of the commission a few days ago, were met by a reference to the books of the Guaranty Fund Commission, which shows that the collateral from the three banks at New Rockford, Williston and Sawyer, which was bid in for the commission, was turned over to the receiver on December 18, 1923, before many of the charges of corruption were made and soon after L. R. Baird became general receiver. The resolution shows the collateral was turned over to the receiver in return for reimbursement on the net value of the investment. Instead of looting the banks, commission members say, they saved the depositors of these closed banks large sums of money. The Guaranty Fund Commission would like to have been able to buy up more collateral than it did, when sales were forced and large blocks of farmers' notes were sold cheaply. It was privileged under the law to apply the funds it had for this purpose, but could not have used all of them, or it would have been diverting them from the purpose for which they were raised, according to Mr. McMillan. With conditions as they are now, the commission does not expect to have to invest funds again.

3. January 26, 1925 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, January 26, 1925

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Article Text

GUARANTYFUND NOW MILLION AUDITORS SAY Amount Available on October 31 of $806,898.24 Supplemented by Payments 32 BANKS NATIONALIZE This Many Take Out National Charters Since Guaranty Law Is Effective "In our opinion the Depositors Guaranty fund has been properly accounted for on its records, and that all disbursements are consistent and in order and properly authorized and authenticated." This is the statement made by the Temple, Brissman Co., certified publie accountants at the conclusion of their audit report of the depositors guaranty fund made as of October 31, 1924. The report shows that on Oct. 31, last. the amount available for the purposes for which the fund was created was $806,898.24. This is exclusive of $204,661 due from closed banks in the state on deposits and assessments. No figures are given however as to the total liability of the fund to depositors in closed banks, this being beyond the province of the examination. Total Expenses The total expenses of the commission since its inception in 1917 to the date of the audit was $78,801.19. Of this $37,848.79 has been paid from legislative appropriation and the remaining $40,952 from the assessment fund. On October 31, 1924 the commission had on deposit in closed banks $112,966.29. A supplementary report shows that since the date of the audit $18,901.55 has been withdrawn. These deposits are divided among 16 closed institutions, the largest amount in any one bank being $21,398.39 in the defunct Williams County State Bank at Williston. There was also $21,515.26 on deposit in banks which were on the special deposit list on October 31, but of this $15,773.88 has been withdrawn since that date. Closed banks which still hold deposits of the guaranty fund are the Clyde State Bank, Bank of Cogswell, Farmers Bank of Dunn County, Dunn Center; Farmers State Bank of East Fairview, Sawyer State Bank, Williston State Bank, Farmers Bank of Garrison, State Bank of Grenora, Farmers Bank, Hampden; Security State Bank of Hanks, State Bank of Maxbass, Farmers State Bank of Nome, Farmers State Bank of Rawson, Farmers Bank of Ray, Farmers and Merchants State Bank of Sherwood, Tolley State Bank, Farmers State Bank of Watford City, Williams County State Bank of Williston. There was also due from these closed banks $89,303 on assessments to the guaranty fund, but $34,625 of this has been remitted by the state receiver since the date of the audit. In addition to these obligations there is the sum of $2,341.99 listed as notes receivable. These notes represent loans made to the receiver of the Farmers' and Merchants Bank of Robinson for receivership expenses. Intervene In Affairs It is shown in the audit report that the commission has intervened in the affairs of a number of closed banks in order to protect its interests. Some of these were as follows: The Sawyer State Bank had pledged collateral to secure certain loans. (Continued on page 4)