First National Bank - Willow City, ND

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 6766
Charter Number: 6766
Start Date: October 14, 1925
Location: Willow City, North Dakota (48.604, -100.294)

Metadata

Model: gpt-5-mini
Short Digest: 6c6686db

Response Measures

None

Receivership Details

Depositor recovery rate: 10.0%
Date receivership started: 1923-07-12
Date receivership terminated: 1927-09-21
OCC cause of failure: Losses
Share of assets assessed as good: 30.2%
Share of assets assessed as doubtful: 53.9%
Share of assets assessed as worthless: 16.0%

Description

Articles (Oct 14, 1925 and Apr 12, 1926) refer to B. O. Schram as receiver of the First National Bank of Willow City and subsequent court litigation over bank assets. No contemporaneous run is described in the excerpts; the bank had a receiver (closure) and legal appeals followed. I classify this as a suspension/closure with receivership.

Events (4)

1. May 5, 1903 Chartered

Source: historical_nic

2. July 12, 1923 Receivership

Source: historical_nic

3. October 14, 1925 Receivership

Newspaper Excerpt: Appeal has been taken ... B. O. Schram, receiver of the First National Bank, ... against William J. Armstrong ... The banks are appealing from a decision in the fourth judicial district in which it was held that the defendants had prior rights in certain real estate claimed as assets of the First National Bank of Willow City.
Source: newspapers

4. April 12, 1926 Other

Newspaper Excerpt: Bottineau County Decision Reversed --The supreme court has reversed the decision of the Bottineau county district court in the case of the Merchants National Bank of Willow City and B. C. Schram as receiver of the First National Bank of Willow City vs. William J. Armstrong and others.
Source: newspapers

Newspaper Articles (2)

1. October 14, 1925 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, October 14, 1925

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Article Text

# WILLOW CITY # BANKS APPEAL # TO HIGH COURT Appeal has been taken to the supreme court in the case of the Merchants National Bank of Willow City and First National Bank of Willow City, B. O. Schram, receiver of the First National Bank, and Axel Fred against William J. Armstrong, David I., James A. and Thomas A. Armstrong, Mary Ann Atkinson, Arabella Rands and "any other person claiming interest in or lien upon the property described in the plaintiff's complaint." The banks are appealing from a decision in the fourth judicial district in which it was held that the defendants had prior rights in certain real estate claimed as assets of the First National Bank of Willow City.

2. April 12, 1926 The Bismarck Tribune Bismarck, Mandan, ND

Article from The Bismarck Tribune, April 12, 1926

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Article Text

Bottineau County Decision Reversed --The supreme cour has reversed the decision of the Bottineau county district court in the case of the Merchants National Bank of Willow City and B. C. Schram as receiver of the First National Bank of Willow City vs. William J. Armstrong and others. The case involved the right of Armstrong to give heavy mortgages on property owned by him to relatives in such a manner that the banks were prevented from collecting sums alleged to be due them. The district court held in favor of the defendants but the supreme court held that certain of the mortgages were fraudulent and void on the ground that they operated against collection by the banks of money justly due them.