12661. Williams County State Bank (Williston, ND)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
December 13, 1920
Location
Williston, North Dakota (48.147, -103.618)

Metadata

Model
gpt-5-mini
Short Digest
73e675a0

Response Measures

None

Description

Articles (1925) refer to the bank as a closed institution and to L. R. Baird as receiver of the closed banks of Williams County. The papers state deposits were to be recovered dating from Dec. 13, 1920, implying the bank suspended/closed then and remained closed (receiver in place). The closure appears tied to alleged mismanagement/use of the bank by trustees/agents, so classified as bank-specific adverse information leading to suspension and permanent closure (receivership).

Events (2)
1. December 13, 1920 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Articles allege the bank was operated by trustees/agents who used it to benefit creditors at the expense of depositors; deposits claimed missing, indicating internal mismanagement/abuse leading to closure.
Newspaper Excerpt
with interest from December 13, 1920 ... the amount alleged to be the entire sum of deposits ... in the bank during the regime of the defendant creditors who took over the management of the bank in 1920.
Source
newspapers
2. May 29, 1925 Receivership
Newspaper Excerpt
L. R. Baird, receiver of the closed banks of Williams county, have been filed ... in county district court at Williston against former trustees of Williams County State bank, Fargo attorneys announced today. (May 29, 1925).claims total $680,962 in bank suits of closed administrators Williams County Bank Named Defendants (June 2, 1925).L. R. Baird, receiver of closed banks, have been instituted against former trustees of the Williams County State Bank at Williston, N. D. (June 2, 1925).
Source
newspapers

Newspaper Articles (2)
1. May 29, 1925 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, May 29, 1925

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Article Text

# BAIRD FILES # CIVIL SUITS # FOR INTEREST Former Trustees of Williams Institutions Defendants in Court Action (By The Associated Press) Fargo, May 29. -Two civil actions in behalf of L. R. Baird, receiver of the closed banks of Williams county, have been filed in county district court at Williston against former trustees of Williams County State bank, Fargo attorneys interested in the case announced today. The suits are to recover $630,962, with interest from December 13, 1920. This amount is alleged to be the total of deposits, both individual and of the county, that were in the bank during the regime of the defendant creditors who took over the management of the bank. Action instituted by Williams County asks for $122,393 with interest for the same time. The plaintiffs contend that during the three years the bank operated under the management of J. P. Desmond, one of the agents of the Eastern firms, it was "no bank at all" but a strictly institution which was used to further the interest of creditors who took it over.

2. June 2, 1925 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, June 2, 1925

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Article Text

CLAIMS TOTAL $680,962 IN BANK SUITS of Closed Administrators Williams County Bank Named Defendants Civil actions, one filed in the name c : L. R. Baird, receiver of closed banks, have been instituted against former trustees of the Williams County State Bank at Williston, N. D., to recover $680,962.93 with interest from Dec. 13, 1920. This amount is alleged to be the entire sum of deposits, both public and individual, in the bank during the regime of the defendant creditors who took over the management of the bank in 1920. A separate action, instituted by Williams county, asks for $122,393.56 with interest from Dec. 13, 1920, the amount of county funds on deposit in the bank. The contention of the plaintiffs is that during the three years the bank was operated under the management of J. P. Desmond, one of the agents of the eastern creditor institutions, it was "no bank at all," but strictly a private institution which was used to "further the interests and benefit the creditors to the expense of the depositors." First service in the case was had on C. T. Jaffray of Minneapolis, president of the Soo railway and chairman of the board of directors of the First National bank of Minneapolis. Papers were served on Mr. Jaffray at Grand Forks Thursday night, just before he addressed a meeting of the Commercial club in that city. Many Defendants The defendants in the actions are: First National bank of St. Paul, First National bank of Minneapolis, Northfield National bank of Northfield, Minn., the Ulland. Mealey. Cer. ley company of Minneapolis, the Citizens Commercial Trust company of Buffalo, N. Y., the Union National bank of Minot, N. D., Eric A. Thorberg, Ed. Schulenberg, George F. Bates, O. A. Drews, J. P. Desmond and A. W. Bollum. The individuals named are alleged to have been agents of the creditor corporations in taking over the Williams County State bank and in operating it. The suits were instituted by Ernest A. Francis, state's attorney of Williams county, and William Lemke