12638. Merchants State Bank (Velva, ND)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 1, 1924*
Location
Velva, North Dakota (48.056, -100.929)

Metadata

Model
gpt-5-mini
Short Digest
3ac532cd

Response Measures

None

Description

Newspaper articles (1927) identify L. R. Baird as receiver for the Merchants State Bank, Velva, N.D., and refer to the bank as one of several state banks that failed three years earlier (circa 1924). No article describes a depositor run; the bank is in receivership and permanently closed.

Events (1)

1. January 1, 1924* Receivership
Newspaper Excerpt
receiver of five state banks in North Dakota which failed three years ago ... Two other judgments were obtained for the Merchants State bank of Velva for notes alleged due the bank. ... L. R. Baird, as receiver of the Merchants State Bank, Velva, N. D., a corporation, Respondent.
Source
newspapers

Newspaper Articles (2)

Article from The Bismarck Tribune, May 23, 1927

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Article Text

Receiver Obtains Judgment Against 6 Minneapolis Men Minneapolis, May 23.-(P)-Default judgments totaling $25,110 have been obtained in the Hennepin county district court by L. R. Baird, receiver of five state banks in North Dakota which failed three years ago, against six Minneapolis men who were either creditors or stockholders of the closed banks. Two separate judgments, one for $4.787 for the First State bank of Cartwright and another for $5,982 for the First State bank of Manning, were entered against C. G. Kapelovitz, salesman. These were obtained on double liability assess. ments which it is alleged Kapelovitz refused to pay. Two other judgments were obtained for the Merchants State bank of Velva for notes alleged due the bank. For one, $5,911 was entered against A. O. Anderson, Minneapolis, and the other was for a similar amount against A. E. Sevareld, also of Minneapolis. Both judgments previously were entered in the district court of Burleigh county, North Dakota. The remaining two judgments were entered against Fulton I. Kauffman of Minneapolis in the sum of $1,212 for double liability assessment for the First State bank of Dawson and against W. J. Morris of Glen Lake for $1,307 on a promisory note to the First State bank of Brantford.


Article from The Bismarck Tribune, October 20, 1927

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Article Text

From Ward County First International Bank of Minot, North Dakota, a corporation, plaintiff and appellant, vs. Amos Brehmer, defendant and respondent, and First International Bank of Minot, North Dakota, a corporation, garnishee and appellant. Syllabus: 1. A bank cannot, under chapter 139 of the 1923 session laws, charge against a deposit a debt due it from the depositor, or appropriate the deposit for the purpose of paying the debt without "legal process" or "the consent of the depositor." 2. The plaintiff in an action cannot, under the garnishment statutes of this state, summon or charge himself as a garnishee therein. Appeal from district court of Ward county, Hon. Geo. H. Moellring, judge. Action on promissory note. Plaintiff garnisheed itself. Defense discharge in bankruptcy and that plaintiff cannot garnishee itself. Plaintiff appeals from judgments dismissing actions. Affirmed. Opinion of the court by Englert, district judge. Burr, judge, being disqualified, did not participate. Paul Campbell, Minot, attorney for plaintiff and appellant, garnishee and appellant. Halvor L. Halvorson, Minot, attorney for defendant and respondent. From Williams County L. R. Baird, as receiver of Williams County State Bank, a corporation, plaintiff and respondent, vs. First National Bank of Williston, a corporation, defendant and appellant. Syllabus: 1. Section 7218 of the compiled laws of 1913, which provides that a debtor may pay or secure one creditor in preference to another, is held to be a codification of the common law and to be applicable alike to corporations and individuals. 2. Where a corporation is chartered for the purpose of transacting a particular business under strict regulations, and where the right to transact such business is denied to individuals, associations and other corporations, the right of a corporation so chartered, to prefer creditors depends upon the intention of the legislature as disclosed by the charter provisions and the regulations for the conduct of the business. 3. It is held, for reasons stated in the opinion, that the right to prefer creditors is not given to an insolvent banking corporation. Appeal from the district court of Williams county, Hon. George H. Moellring, judge. Affirmed. Opinion of the court by Birdzell, chief justice. Owens & Nelson, Williston, attorneys for appellant. Usher L. Burdick, Fargo, attorney for respondent. From McHenry County L. R. Baird, as Receiver of the Merchants State Bank, Velva, N. D., a corporation, Respondent. Carl Hanson vs. Appellant