Article Text
The First National bank of Lake City has closed on account of a run on it.
First National Bank (Lake City, MN)
Episode Information
- Episode Type
- Run → Suspension → Closure
- Start Date
- December 28, 1885
- Location
- Lake City, Minnesota (44.449, -92.267)
- Bank Type
- national
- Charter Number
- 1740
Metadata
Response Measures
Accommodated withdrawals, Capital injected, Full suspension, Books examined
Receivership Details
- Depositor recovery rate
- 100.0%
- Date receivership started
- 1886-01-04
- Date receivership terminated
- 1886-06-01
- OCC cause of failure
- Losses
- Share of assets assessed as good
- 36.7%
- Share of assets assessed as doubtful
- 58.7%
- Share of assets assessed as worthless
- 4.7%
Notes
Government-record receivership date (1886-01-04) used although contemporary papers report receiver appointment in mid-January.
Events (5)
1.
November 29, 1870
Chartered
- Source
- historical_nic
2.
December 28, 1885
Run
- Cause
- Rumor Or Misinformation
- Cause Details
- Rumors of the bank's unsound condition and speculative dealings precipitated heavy withdrawals.
- Measures
- Many large depositors were paid in part and asked to wait while funds were called in; placard promised depositors would be paid.
- Newspaper Excerpt
- Considerable excitement was created Saturday by rumors that the First National bank of Lake city had failed, and consequently there was a large run on that institution.
- Source
- newspapers
3.
December 29, 1885
Suspension
- Cause
- Rumor Or Misinformation
- Cause Details
- Run (originating in rumors of failure/speculation) plus inability to realize securities caused the directors to temporarily close the bank.
- Newspaper Excerpt
- Owing to the run precipitated upon this bank and the impossibility of realizing upon our securities rapidly enough to satisfy the demand of all our creditors on presentation, the directors have directed that it be temporarily closed.
- Source
- newspapers
4.
January 4, 1886
Receivership
- Newspaper Excerpt
- The comptroller of the currency to-day appointed Frank H. Ross to be receiver of the First National bank of Lake City, Minn.
- Source
- newspapers
5.
January 4, 1886
Receivership
- Source
- historical_nic
Newspaper Articles (21)
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The First National Bank of Lake City Closes Its Doors, But Declares Depositors Will be Paid. The Duluth Street Railroad Company Sells Out to St. Paul and Minneapolis Parties. Citizens of Brown's Valley Voice Their Sentiments on the Canal Scheme. News From Various Points of the Northwest Gleaned by Globe Correspondents. A Bank Closes. Special to the Globe. LAKE CITY, Minn., Dec. 28.-Considerable excitement was created Saturday by rumors that the First National bank of Lake city had failed, and consequently there was a large run on that institution. The bank remained open and transacted its usual business until the close of the day. Many thousands of dollars were paid out, and many thousands of dollars of deposits were received during the day. Several of the larger depositors applied for their money and were paid in part, and were requested to wait a short time until funds could be called in, and they acceded to the request. This morning the bank failed to open, and the following placard appeared on the door: Owing to the run precipitated upon this bank and the impossibility of realizing upon our securities rapidly enough to satisfy the demand of all our creditors on presentation, the directors have directed that it be temporarily closed. All depositors will be paid. A meeting of the directors was held this morning to determine the course of action, but as the United States inspectors did not arrive, they did not come to a satisfactory conclusion. But the stockholders claim that they themselves will be the only losers, as the depositors will in every case be paid their full amount of deposits.
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A Bank Suspends. The Controller of the Currency has received information of the suspension of the First National Bank of Lake City, Minn. Unpleasant Surprises for the New Year.
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Closed Its Doors. The First National bank of Lake City, Minn., did not open its doors, Monday the 25th. A run was started on the bank the preceding Saturday. This, together with the alleged impossibility of realizing upon the bank securities is given as the reason for the suspension by the officers The officers claim that the bank is as insolvent now as at any time since its organization, that depositors will be paid and in full.
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The First National Bank of Lake City Miun., is still in the hands of the examiner. There were rumors that some of the bank funds had been used for speculative purposes but this is emphatically denied. It is admitted however that a Minneapolis man was allowed to largely overdraw his acount but this could not have alone caused the run on the bank. It is believe that will the exercise of due care and prudence, the depositors will all be paid in full and a large balance left over.
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The Lake City Bank. RED WING, Minn., Jan. 5.-A short time ago rumors were afloat that the First National bank of Lake City was not in a sound condition financially, This started a run on the bank and it was closed. The directors promise that all depositors will be paid. Bank Examiner H. W. Knox has taken possession and is looking up the aocounts. The last published statement of the bank showed the deposits to be $125,000Rumors of wheat speculations by the stockholders and of extensive real estate deals are current.
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Closed Its Doors. The First National bank of Lake City, Minn., did not open its doors, Monday the 28th. A run was started on the bank the preceding Saturday. This, together with the alleged impossibility of realizing upon the bank securities is given as the reason for the suspension by the officers. The officers claim that the bank is as insolvent now as at any time since its organization, that depositors will be paid and in full.
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MISCELLANEOUS. THOMAS GREEN, residing near Palmyra, Wis., has created considerable excitement and much comment by abstaining from nourishment of any kind for over fourteen days. Recently, while attending a series of revivals at the Free Methodist Church in his village, Mr. Green became possessed of the idea that he should receive "power" by fasting and prayer. To still asserts he will continue to fast until the receives this "power." ON the 29th three hundred and ninetysaven patents were issued from the Patent Office at Washington. THE new comet discovered December 29th by Prof. Brooks, of Phelps. N. Y., is visible through a medium-sized telescops, and is increasing in brightness. THE Postmaster.General has signed a convention to take effect January 1, 1886, for the exchange of money orders between the United States and the Leeward Islands, comprising the islands of Antigun, St. Christopher, Neuvis, Dominica, Monserratt and the Virgin Islands. THE British had a skirmish recently with the rebels in Egypt and came off victorious. ORANGEMEN and Catholics are engaged in active hostilities again at Conception Bay, N. F. A STRIKE is threatened of locomotive engineers on the elevated roads at New York. AN eruption has occurred at the volcano at Colima, Mexico. ON the evening of the 30th at a banquet given by the Boston (Mass.) Merchants' Association several distinguished Senators and Representatives were among the invited guests. FROM reports received on the 30th, it seemed probable that there would be shown a slight increase in the public debt for December. THE Ohio Central Railroad, recently sold, will be known hereafter as the Kanawha & Ohio. AN American Institute of Hydrophobia, on the Pasteur plan, is to be established in New York. THE Toledo, Cinciunati & St. Louis Railway was sold under foreclosure of mortgage at Indianapolis on the 30th, and was bought by Sylvaster H. Kneeland, of New York. SILVER has declined in value in the London market during the past three months from $1,000 to $1,038 per fine ounce, or a reduction of over six cents. The total number of hogs packed in the West from November 1st to December 30th was 4,030,000 against 3,005,000 for the same time last year. THEP ope will hold a consistory for creating Bishops at the end of the present month. ENGLAND has ceded to China part of Upper Burmah in order to make the Chinese and Indian froutiers contiguous. ON the 30th, 250 miners of the Third Pool returned to work in the mind of Keeting & Co., at the old rate, after having been out all summer and fall. THE suspension is announced of the First National Bank of Lake City, Minn. THE actual count of Vanderbilt's securities showed an aggregate of $305,000,000. ON the 1st. T. D. Sullivan. the new Lord Mayor of Dublin, was installel with much coromony and great enthusiam.
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Prof. Heaton and wife, of Winona, have arrived at Weston, Or., where the former assumes duties in the state normal school. Prof. E. E. Edwards, formerly of the Colorado Agricultural college, and for the past three years principal of the Academy of Olney, Ill., has been called to the Methodist church at Taylors' Falls. Saturday of last week was the twenty-third anniversary of the hanging of the 38 Sioux Indians at Mankato, and like that memorable day was a warm pleasant one. The old settlers who were there at the time of the greatest hanging on record state that if there was any difference Dec. 26, 1862, was the most pleasant. The abstract of the tax list of Wabasha county, just completed, shows a total valuation of $4,945,567, of which $987,907 is personal and $3,957,660 real property. Hon. John W. Arctander has removed from Willmar to Minneapolis. The first national bank at Lake City, has suspended, temporarily, it is said. Minnie Krauser, a fourteen-year-old girl of the town of Candor, ran away from her home, and her parents can find no trace of her. Thomas Bennett, an old resident of Mankato, died recently, at Winnebago City, after a long illness. Hon. William Smith has taken formal possession of the Crookston land office. The improvement convention is to be held at Fargo on the 12th. A Masonic lodge is to be organized at Amboy. Farmington expended $21,350 for new buildings last season. Warrants were issued for twelve well-known citizens of Farmington for fishing with drag nets. So far this season 125,000 bushels of wheat have been marketed at Winthrop. Sauk Centre newspapers demand that steps be taken to stop the wholesale destruction of fish in Sauk lake.
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Receiver at Lake City. WASHINGTON. Jan. 12.-The comptroller of the currency to-day appointed Frank H. Ross to be receiver of the First National bank of Lake City, Minn.
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# The Lake City Bank. Bank Examiner Taylor of St. Paul, commenced an examination the 30th, into the affairs of the First National Bank of Lake City, which closed its doors the Friday before. A telegram from Wabasha says the bank had about $4,500 of county money when it suspended.
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NORTHWESTERN NEWS. The cold wave has given the St. Paul Ice Palace a big boom and the inhabitants of the city are so happy over it that they turned out with a military and torchlight parade to lay the corner block. The weather was so cold that the words of the speaker on the occasion broke in chunks as they were spoken, and the reporters for the daily papers only had to stand and eatch the ice sentences in a bucket and taking them to their offices thawed them out and thus had a complete transcript of the "unpremeditated remarks" of the orator. The palace is to be opened with great festivities on the evening of Monday, Feb. 1. The Duluth chamber of commerce building was formally dedicated on the 6th. Representative business men from St. Paul, Minneapolis, Fargo, Chicago, Milwaukee, New York and many other points being present. At the evening banquet, Gov. Hubbard of Minn., and Gov. Pierce of Dakota responded to toasts and were followed by Gen. J. H Baker. railroad commissioner of Minn., Mayor Moore of Duluth, J.J. Hill of the St Paul & Manitoba railroad and many others. The building has a frontage on Superior street of 55 feet and 115 feet on Third avenue west and has been erected at a cost of $85,000. The body of the late J. B. Raymond of Fargo, D. T., was buried in Rock Creek cena etery at Washington on the 11th. The re mains of his wife who was buried in Washington last spring were removed to a family burial lot and they were both interred together. There were no funeral services save the brief ceremony at the grave. Sen. ator Sabin, with whom Mr. Raymond's daughters are living, had charge of the burial. The Secretary of the Interior recommends the beginning of a suit against the Gull River Lumber company of Minneapolis and also the Clearwater and Red River Lumber companies for trespass on government timber lands The amount involved is a little over $25,000. J. H. Dolchy, alias, J. H. Laine, the business manager of the Cal. Wagner minstrel troupe, has been arrested at Stillwater Minn., and confined in jail for deserting his wife and child. the wife having followed him from New Jersey to prosecute. U.S. Marshall Denny of Minnesota, has tendered his resignation, all charges against him having been withdrawn. His term would have expired Feb. 20th. His successor will probably be W. M. Campbell of Litchfield. Roller rinks seem to be especially inflammable this winter. Almost every paper contains an account of the destruction of one some where. La Moure, D. T., contributed her quota on the 9th, by the burning of the Opera roller rink. The Merchants National Bank has been organized at Duluth with $150,000 capital. The President is A. W. Wright who is a millionaire capitalist from Saginaw, Mich. Oswald, who shot McWeeney at Devils Lake, has been held on preliminary examination for murder and is confined in jail without ball. A cold wave with the mercury from 15 to 38 degrees below zero swept over the Northwest on the Sth, 9th, and 10th. The suspended National Bank at Lake City, Minn., is expected to resume in about two weeks. F. H. Ross of Bushnell, Iowa, has been appointed receiver of the First National Bank at Lake City. In the trial of Wm. Streeter for murder, at Duluth, the jury failed to agree. The St. Paul & Omaha railroad depot at Superior, Wis., burned on the 9th. The Eagle foundry at Eau Claire. Wis., burned on the 11th. H. L. Dousman, of Prairie du Chien, Wis, is dangerously ill. E. T. Silverson, a merchant at Fargo, has failed.
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The original Misfit parlors at St. Paul were closed by the sheriff. At Watertown, Dak., at 7 a. m. on the 8th inst., the mercury stood 38 below. A. L. Lewis was elected president of the reorganized West St. Paul Citizen's union. At St. Vincent the mercury was 35 below zero a few days ago, and the wind blew a thirty-mile rate. Mrs. Behner, at Winona, shot her husband and then attempted to kill herself. Neither is seriously injured. Attorney General Hahn decides that original owners may redeem land twice sold for taxes. The thermometer ranged from 85 below at Devil's Lake early Friday morning the 8th inst., to 15 below at noon. The senate committee reported adversely on the appointment of Posmaster Hallat Preston. Melchor Knudent of Crookston has applied for a writ of habeas corpus in the United States court. He is in jail charged with using themails for an illicit purpose. Unknown parties cut down and carried away several rods of the telephone wire between Princeton and Elk River. Mrs. Margaret M. Becker, mother of Mrs. R. S. Burdick, and Mrs. S. E. Coots of St. Paul, and Mrs. A. D. Ross of Litchfield, died at the home of Mrs. Ross, Litchfield, aged 79years. The Lakeside mills at Bingham Lake were destroyed by fire. Several people sleeping in the building narrowly escaped with their lives. Loss not stated. Insured for $10,000. The will of the late Dr. John Steele, of St. Paul, was probated recently. The real estate in appraised at $163,500, and personal property at $86,296; total $249,796. The fee for probating this will was $1,000, the largest fee ever paid in theprobate court. It is very likely that the suspended First National bank of Lake City, will resume business in & couple of weeks, or a little later. One of the stockholders, J. C. Hassinger, living in California, is expected there soon. Most of the stockholders have signified a disposition to respond promptly to such an assessment as may be necessary to put the bank on a good footing again. The Lake Side mills at Brigham Lake, a small station four miles east of Windom, were burned. Loss about $15,000 on building and machinery and $5,000 on stock. The stock was owned by David Heibert, of Mountain Lake, and Haycock & Neidhardt owners of the mill. Fourteen son3 of Harvard University held a banquet at St. Paul. Twenty-six years had intervened between the time the youngest and oldest man had graduated, and there were stories and songs which covered the whole period. Asa Farnum, at Owatonna has failed with liabilities of $2,300; assets $1,700. At the annual meeting of the Anoka Agricultural society. Hon. Jared Benson was elected/president. Gladstone's Hall, Red Wing, burstedirom an accumulation of snow. The Gladstone block was owned by James Lawther and was in an unfinished condition, the walls laid, the roof on and the windows boarded up, he intending to finish it in the spring. On Monday, Dec. 28, there was a brilliant assembly of Minnesotians at the Wilkins house, Santa Cruz, Cal. They met there. to the number of 101, to organize a Minnesota association, composed of former Minnesotiansnow resident in Santa Cruz and vicinity. An appetizing supper was served, after which Dr. C. L. Anderson, formerly of Minneapolis, delivered a highly entertaining address of welcome, which was responded to by Mrs. L. Wheeler of Minneapolis, A permanent organization was offected with Dr. Anderson for president, Rev. O. C. Tillotson, secretary, and Mrs. D. C. Sherman, treasurer. William Denning of St. Paul and Miss Maggie Foley of Clermont, Iowa, weremarried at the cathedral by Rev. Father Shanley. News has reached Minneapolis of the par. doning of Jennic McPherson, a woman well known thereabouts, who was sentenced to Sing Sing for five years for forgery. The details of the woman's checkered career are sufficiently familiar. She was sentenced July 5. 1885, and is now about thirty years old. It is said she will return to Minneapolis. A. R. Helmer, a tramp. attempted to commit suicide in the police station at St. Paul. The pressure on Vilas was too great and Postmaster Hall Preston will be relieved. Jacob Morganatern, a wholesale jeweler at St. Paul has iniled.
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Receiver Appointed. Controller Carman of the U. 8. treasury, has appointed F. H. Ross of Illinois, receiver of the suspended First National Bank of Lake City, Minn., pending the ac tion of the stockholders as to resuming bus iness.
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Receiver Appointed. Controller Carman of the U. S. treasury, has appointed F. H. Ross of Illinois, re ceiver of the suspended First National Bank of Lake City, Minn., pending the action of the stockholders as to resuming bus iness.
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Receiver Appointed. Controller Carman of the U. S. treasury, has appointed F. H. Ross of Illinois, receiver of the suspended First National Bank of Lake City, Minn., pending the action of the stockholders as to resuming bus iness.
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The First National Bank of Lake City to Pay Dollar for Dollar and Resume Business. A Ranchman Near Bozeman Suspects His Wife of Infidelity and Kills Himself With a Razor. Nelson's Chippewa Bill Reported Favorably--A Lookout for Cannon's Successor. Walker on the Upper Mississippi-Accidental Killing at Rochester-The Fire Record. On Its Feet Again. Special to the Globe. LAKE CITY, Minn., Jan. 22.-Various stockholders of the First National bank of this city indicate that they intend to pay the depositors dollar for dollar, and it is expected the new organization will assume the liabilities of the old bank, paying off all indebtedness as rapidly as possible. In response to inquiries regard.ng the cause of the suspension of the First National bank of Lake City, President Young has the following to say: No one is to blame, as far as my knowledge goes, for the troubles of the First National bank of this city, except the cashier. who allowed Willis Baker to overdraw his account too largely unknown to the other directors and contrary to their orders. I stood ready before the doors of the bank were closed, and now stand ready to pay my proportion to all depositors within a few hours' notice. We had hoped that permission would be granted by the comptroller to allow us to continue business under the old charter, and we were planning to resume business within a week or two, but we learn that it cannot be done. The shareholders are now planning to organize under a new charter. How soon this can be brought about, and if it is practicable for all purposes, I cannot tell at this moment.
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the supreme court of Dakota. Postmasters- N. E Ives. Marion. Iowa: Paul Dow lin. Greenfield, Iowa: S. L. Childs, Atlantie, Iowa: F S. Brokawa, Mount Vernon, Iowa: Annie Brennock, Dunlap, Iowa: J. Bak, Red Oak, Iowa; L. M Thomas, Watertown, Dakota: M. P Stattery. Bismarek, Dakota: J. D. Pratt, Ipswich, Dakota: G. C.Laskell, Larimore, Dakota: E. W. Carr, Woonsocket, Dakota: F.G. Wharton, El endale, Da ota: P.B. Brod, Li-bon, Dakot : W P. Carr, Sioux Falls, Dakota: J.F. Ryan, Anaconda. Mont. The house committee on territories on the 25th, heard arguments from Messrs. Thompsou and Johnson, two prominent citizens of Dakota, in favor of the admission of the entire Territory of Dakota as a state and against division. They said the interests of the entire territory were identical. and that the state's resources should be kept together. They cannot think that the northern portion of state should cut off Mr. Johnson said the north and south division was a political scheme gotten up by Judge Moody to send bimself to the senate. The state, if divided at all, should be divided from east and west: and they claimed that such was the sentiment of the people of Dakota. with the exception of Judge Moody and a few others. The Senate committee has decided favor ably on the comfi mation of the following officers: Col Sheafe, register at Watertown, Dsk G W. Warner, register at Tracy, Minu Capt. Marble, register at Dututh: William Smith. register at Crookston: D.T. Bramble receiver atertown, Dak. M. D McHenry, receiver at Des Moines, and P. K. Wesser, receiver at Tracy, Minn. A locomotive boiler explo ded in the Milwaukee & St. Paul round house at Madison, Wis.. on the evening of the 22d. killing ne man instantly, injuring to others fatally and seven more considerably The engine had been fired up to go out and the valve which allowed the escape of steam failed to work. The building WAS badly damaged and the loss is $15,000 to $20,000. Toe board of directors of the Northern Pacific, have authorized the letting of the tunnel, two miles in length, through the Cascade mountains, to Nelson Bennett of Dear Lodge, Mont The tunnel will cost something under $800,000, and is to be completed by May, 1888. 3 The Minnesota State Agricultural society met at the capitol in St. Paul on the 26th President N P Clarkedeliveredan address showing a gratifying financial condition The society was out of debt and had $350,000 worth of property. Mr Clark having declined the presidency, Horace W Pratt, of Faribault, Rice county was elected. R. C. Judson of Farmington, was re-elected secretary. The Northern Pacific committee having charge of the settlement of accounts with the Oregon Transcontinental, have found matters so complicated, owing to the Villard system of bookkeeping, that the whole affair has been turned over to expert accountants. Corsett, the cashier of the Devil's Lake, D. T., bank, whowas arrested for receiving deposits when the bank wasin a shaky condition, has had an examination before a justice and been discharged. Reuben Noble has been appointed receiver of the bank. Congressman Rankin of Wisconsin, died in Washington at noon on the 24th, after an illness of long duration. For several weeks he was not expected to live from day to day. The President of the First National bank of Lake City, Minn, charges the failure to the cashier allowing over drafts, one man being allowed to overdraw his account $50,000. W. R Smith's book store at Fergus Falls, Minn., burned during the night of the 22nd. The mercury was 38 below zeroand the firemen suffered badly. Loss $5,000. Two car loads of cattle were frozen to death last week on a blockaded freight train, on the Iowa & Dakota division of the Milwaukee & St. Paulroad. Gov. Larabee of Iowa, has reinstated State Auditor Brown, who was foreibly ejected from his office last March by Gov. Sherman. Four prisoners broke out of jail at Alma, Wis., on the 23d, and three of them were captured at Winona, Minn., on the 24th. President Baseom of the Wisconsin State University announces that he will resign on the 1st of June, 1887. E. W. Warding of Plainview, Minn., dropped dead of apoplexy at Fargo, D. T., on the 23d. The city hall at St. Peter, Minn., burned on the 21st. Loss $6,000.
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COMPTROLLER CANON decides that Bank, which went into the receiver's hands a few days ago, cannot resume the Lake City (Minn.) First National business as they have applied to do. He holds that when a national bank's doors are once closed that ends it, and the stockholders must organize anew if they wish to continue business.
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Capture of a Cashier. ST. PAUL, MINN., April 3.-Cashier Van Viet, late of the Lake City National Bank, which is now in the hands of a receiver, was brought to St. Paul this afternoon. The exact nature of the charges against him are unknown.
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A Bank Official Arrested by Marshall Denny and Held in Heavy Bonds. The Board of Health Takes a Hand at the Much Mooted Garbage Question. Many Visitors Were at the Hotels Who Talked on Many Topics. Deaths of a Week--What Caused the Southern Floods--The Local Summary. # A BANKER ARRESTED. Maj. L. S. Van Vliet of Lake City Placed Under Arrest. United States Marshal Denny yesterday went to Lake City and arrested Maj. L. S. Van Vliet, formerly cashier of the National bank of that place. The warrant was sworn out by Receiver Ross on the grounds that Van Vliet made a false report of the condition of the bank, which it will be remembered went to pieces not long ago. The prisoner arrived here late yesterday afternoon and was arraigned before United States Commissioner Cardozo. He waived examination and gave bonds to the amount of $10,000. It was learned that Van Vliet returned to Lake City last night.