20248. Bank of Beresford (Beresford, SD)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
private
Start Date
May 27, 1893
Location
Beresford, South Dakota (43.081, -96.774)

Metadata

Model
gpt-5-mini
Short Digest
e4082319

Response Measures

Full suspension

Other: Receivers appointed; criminal indictments later dismissed

Description

Multiple newspaper accounts (May–June 1893) report a brief run 'of a few hours' preceding the failure of the privately owned Bank of Beresford (Ames Bros./A. A. Ames). Receivers were appointed (H. K. Webster, later August Frieberg) and the bank remained defunct; court records and receiver reports follow through 1893–1894. Cause is bank-specific adverse information: proprietor's heavy gambling losses on racing led to insolvency.

Events (5)
1. May 27, 1893 Run
Cause
Bank Specific Adverse Info
Cause Details
Run followed revelations or rumors of proprietor A. A. Ames' heavy losses on running horses and speculative/fast living, undermining confidence
Newspaper Excerpt
the failure ... occurred last Saturday after a run on it of a few hours had been made
Source
newspapers
2. May 30, 1893 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank became insolvent due to heavy losses by proprietor (A. A. Ames) on race-horses and speculative conduct; bank stopped payment/assigned and applied for a receiver
Newspaper Excerpt
The Bank of Beresford ... a private concern ... has failed. It is believed that the depositors will be heavy losers.
Source
newspapers
3. June 1, 1893* Receivership
Newspaper Excerpt
Ames Bros. have made application to have H. K. Webster, their cashier, appointed receiver. He has not qualified yet or furnished the $50,000 bonds required by the court.
Source
newspapers
4. December 1, 1893* Receivership
Newspaper Excerpt
Harry K. Webster, receiver of the Bank of Beresford ... has made out a report of the resources and liabilities of the defunct concern which has just been filed
Source
newspapers
5. December 28, 1893 Receivership
Newspaper Excerpt
A MEETING of the creditors of the defunct Bank of Beresford ... August Frieberg was elected receiver to succeed H. K. Webster, resigned.
Source
newspapers

Newspaper Articles (12)
1. May 31, 1893 The Wichita Daily Eagle Wichita, KS
Article from The Wichita Daily Eagle, May 31, 1893

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FAILURES. SIOUX CITY, Ia., May 30.-The Bank of Beresford of Beresford, S. D., a private concern, at the head of which is A. A. Ames, has failed. It is believed that the depositors will be heavy losers. The cause of the failure was heavy losses by Ames on races. He is the owner of a large string of running horses. BLOOMINGTON, Ind., May 30.-The - Worlev bank of the town of Ellensville has failed. with liabilities of $35,000 and assets of $50,000. BRISTOL, Tenn., May 30. - The Big Stone Gap Land company, capitalized at $2,000.000, and with a bonded indebtedness of $2,000,000, has been forced into liquidation by a suit of stockholders. The bill alleges gross mismanagement and misappropriation of fands. A receiver has been ap. pointed to wind up its affairs. CLEVELAND, O., May 30.-A largely attended meeting of the creditors of ex Secretary Foster was held at Fostoriatonight. Resolutions of sympathy were adopted. after which It was agreed to accept 50 cents on the dollar in payment of claims, leaving it entirely with Mr. Foster whether he should pay more if he should become financially able to do so.

2. June 1, 1893 Abilene Weekly Reflector Abilene, KS
Article from Abilene Weekly Reflector, June 1, 1893

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LITTLE BANKS FAIL. A Couple of Concerns Call Up the Sheriff. SIOUX CITY, Ia., May 31.-The Bank of Beresford, Beresford, S. D., a private concern, at the head of which is A. A. Ames, has failed. It is believed the depositors will be heavy losers. The cause of the failure was heavy losses on running horses sustained by Ames, who was a track follower, and the owner of a large string. BLOOMINGTON. Ind., May 31.-The little town of Ellettsville was surprised by the failure of the Worley bank at Ellettsville, a private institution. The liabilities are about $33,000 and the assets will reach $50,000. It was impossible to realize on notes and property, necessitating a failure. It is believed the bank will pay all obligations.

3. June 2, 1893 Union County Courier Elk Point, SD
Article from Union County Courier, June 2, 1893

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BANK OP BERESFORD FAILS. The Institution Goes Under Last Saturday and Catches a Large List of Depositors. The failure of the Bank of Beresford, which occurred last Saturday after a run on it of a few hours had been made, is quite a shock to the business interests of the county at large, and Beresford in particular. The bank was owned by Ames Bros. and was generally considered a strong institution. Beresford as well as Union county is particularly prosperous, and it is hard to see how a bank doing a legitimate business should be forced to assign. Of course there are various rumors given as the direct cause of the failure of the Bank of Beresford, the most plausible of which is that of wild speculation and fast living of the proprietors. One of the heaviest losers by the crash is county treasurer Compton, who had $3,021.05 in the bank at the time it closed its doors. This was money belonging to the county which had been collected by the bank and left there by the treasurer On deposis, as has been the custom of all treasurers of the county. No blame can attach to treasurer Compton, nor will the tax payers lose a cent by it. The loss falls heavily on Mr. Compton, who is comparatively a poor man. Nothing can be learned of the actual condition of the assests and liabilities of the concern. In their papers filed on which they ask for n receiver they stated their liabilities to be $35,000 and assests $40,000, but people have learned to look with euspicion on the assests claimed by those who fail, and it is highly probable that every depositor will sustain quite a loss. It is rumored that several school districts in this and Lincoln counties have their money tied up in the failure, but the amount cannot be learned. Ames Bros. have made application to have H. K. Webster, their cashier, appointed receiver. He has not qualified yet or furnished the $50,000 bonds required by the court. The Bank of Beresford owned the e Commercial Bank at Wakonda, of which R. Z. Bennett was cashier. Last month the Clay County Bank of Vermillion bought it, but was not 1 to take possession until July 7th. Last Saturday, Bennett, to protect f his own interests and to keep the bank from falling into the hands of a receiver, turned it over to the Vermillion bank, and as n result the Wakonda institution will not ap. pear among the assetts of the defunct Beresford bank. I Ames Bros. claim they have pay per and real estate enough to pay D every cent of their liabilities if the I matter is carefully handled. It is to be hoped this is true, as the outlook nowis anything but encouraging a to those having deposits with them. Treasurer Compton hopes to get hold of property enough to cover his e claim, and is doing some lively hustling these dars. Taken all in all it is bad failure. and bed thing for Bereeford as it ties upcoualderable money,

4. June 3, 1893 Chicago Eagle Chicago, IL
Article from Chicago Eagle, June 3, 1893

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Ruined by Horse-Racing. The Bank of Beresford, at Beresford, S. D., a private concern, at the head of which is A. A. Ames, has failed. Particulars as to its condition are meager, but it is believed depositors will be heavy losers. The cause of the failure was heavy losses on running horses sustained by Ames, who was a track follower and owner of a large string.

5. June 7, 1893 The Star Reynoldsville, PA
Article from The Star, June 7, 1893

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LATE TELEGRAPHIC JOTTINGS BOTH FROM HOME AND ABROAD. What is Going On the World Over. Important Events Briefly Chronicled. Financial and Commercial. At Sioux Falls, 8. D., the Bank of Bererford, R private institution, with capital of $25,000 has failed. Wells & Garretson, private bankers at Fairfield, Iowa, have suspended payment to await the result of collections. Their total liabilities are estimated at $50,000 and their assets at over 80.000. --ALEXANDER DEUTOCH. one of the hig dry goods men of New York, makes his wife's gowns. It is said that he could give Worth pointers on dressmaking if it were worth his while. Comptroller Eckels was informed of the failure of the Gulf National Bank, of Tampa, Fla. The capital of the bank was $50,000, and the individual deposits $123,346. The total liabilities of the failed Yates Bank of Rochester, N. Y., are $4,118,803 93, with only $500,000 of unhypothecated assets to meet unsecured and contingent liabilities of $2,868,539 99. The creditors of Ex-Secretary Foster met in Fostoria. O., and agreed to accept 50 per cent. in payment of their clai ms. the pay. ment of the balance to rest with Mr. Foster's future ability and judgment. Mr. Foster says he soon will be able to pay 50 per cent.

6. June 7, 1893 The Advocate and Topeka Tribune Topeka, KS
Article from The Advocate and Topeka Tribune, June 7, 1893

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repeated violations of law on the part of the management and the refusal to pay assessments, thereby producing a condition rendering them insolvent. The examiner will give out no statement of assets or liabilities. Cashier Mears announces the small indebtedness does not exceed $60,000, with assets five times that amount. PLATTE CITY, Mo., May 29.-The Platte City Mill & Elevator Company assigned to the Exchange bank of Platte City, Mo., to-day. Assets, about $20,000; liabilities estimated at $15,000. The company will doubtless continue business in three or four days, as wealthy Iowa parties are interested. BLOOMINGTON, IND., May 30.-The Worley bank at Ellettevile, a private in stitution, has assigned. The liabilities are about $35,000, and the assets will reach $50,000. It was impossible to realize on notes and property, necessitating assignment. It is believed that the bank will pay all obligations. SIOUX CITY, IA., May 30.-The bank failure of Beresford, S. D., a private concorn, at the head of which is A. A. Ames, has failed. It is believed the depositors will be heavy losers. The cause of the failure was heavy losses on running horses sustained by Ames, who was a track follower and the owner of a large string. BRISTOL, TENN., May 30.-The Big Stone Gap Land Company, capitalized at $2,000,000, and with a bonded indebtedness of $2,000,000, was forced into liquidation yesterday by a suit entered in the United States district court at Abingdon, by William McGeorge, Jr., John H. Dingee, John C. Bullitt, Samuel W. Coulter, Jr., and Dr. William Pepper, all of Philadelphia. The bill alleges gross mismanagement and misappropriation of its funds. ST. JOSEPH, May 31.-The wholesale lumber firm of Meuhleisen & Co., filed a deed of assignment at midnight. B. K. Tenny, of Chicago, was named as trustee. The firm has several yards in this section also in Kansas. The liabilities are not fully known, but a rough estimate places them at $150,000. The failure was caused by the assignment of S.B. Baker, the lumber dealer at Chicago, who failed yesterday. MILWAUKEE, June 1.-The Plankinton bank closed its doors at 10:05 o'clock to-day, when the following notice was tacked to the front door of the institution: Owing to the failure of our efforts to reorganize the bank and to the oontinual withdrawal of deposits, we have thought it best for the interest of all depositors and stockholders to close the PLANKINTON BANK. bank. The suspension is largely due to the failure of F. A. Lappen & Co., and the Lappen Furniture Company two weeks ago with liabilities that will probably amount to $750,000 when the worst is known. The Lappen firms, so far as claims have been recorded, owe the Plankinton bank between $200,000 and $250,000, and this sum is due on Lappen's personal notes, which are considered practically valueless. The Lappen in-

7. June 8, 1893 Echo De L'ouest Minneapolis, MN
Article from Echo De L'ouest, June 8, 1893

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FAILLITES DE BANQUES L "Exchange Bank" de Glad stone, Mich., a fait faillite. C'est une conséquence de la faillite d6 la "Plankinton BaLk" de Mi'waukee. MM, SAuger, Moody et Steel de Jolliet, Ill., ont fait faillite. La "Patt r's Bak" one des plus vieilles banques du comté de Paulding, Ohio, viont de fermer ses portes. Elle avait été établie en 1874 et faisait des affairea considérables. MM Ch-vraton, Martin et Cie banquiers avenue Ogden à Chra go viennent de déposer leur bilan Passif 100.000 dollare. Lq "Merchants National Bank," la plus vieille de Tacoma, Wash., a suspendu BEB paremente. Son capital était de $250,000. La Plankin'on Bai k" de Mil waukee, a fait failli'e. MM. Hermann, Schaffner et Cie banquiers de Chicago ont déposé leur bilan On dit que Schaffner B'est suicidé. La "Bank of Beresford," S. D vient de fermer ses portes. A sa tête se trouvait A. A. Amee. La "Sandusky Savings Bank Company" de S ndueky O. a suspendu 803 paiements. La "M rchants National Bank" de Fort Wo th Texas, à fermé ses portes. La "Canyon Bank" de Spokane à fait faillite. -MM. Madowaraft frères, banquiers de Chicago, ont déposé leur bilan. A Milwaukee la "South Side Savinga Bauk" et la "Second Ward Bank" sont sur le point de suivre l'exemple d - 8 banques BUB nommée3. Il en est de meme de la "Illinois Trust & Savings Bank of Chica go."

8. December 7, 1893 Union County Courier Elk Point, SD
Article from Union County Courier, December 7, 1893

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RECEIVER'S REPORT. Condition of the Bank of Beresford as Reported. Harry K. Webster, receiver of the Bank of Berestord, which A. J. Ames wrecked so completely, has made out R report of the resources and liabilities of the defunct concern which has just been filed with Clerk Miller of the circuit court. The bank's liabilities figure up big. while the resources are sufficiently small to create a doubt whether the creditors will receive 25 cents on the dollar. The following table will show the condition Mr. Webster reports to Judge Smith he found the affairs of the bank to be in:

9. December 28, 1893 Union County Courier Elk Point, SD
Article from Union County Courier, December 28, 1893

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Another Receiver Chosen. A MEETING of the creditors of the defunct Bank of Beresford was held at Beresford and August Frieberg was elected receiver to succeed H. K. Webster, resigned. It was decided that two-thirds of the depositors, or rather depositors represented, should decide the appointment of the new receiver, and as banks in New York and Sioux City hold the bulk of the stock the appointment of Mr. Frieberg will have tc be approved by them. Nothing definite as to the condition of the bank could be learned.

10. January 5, 1894 Hot Springs Weekly Star Hot Springs, SD
Article from Hot Springs Weekly Star, January 5, 1894

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Another Receiver Chosen. A MEETING of the creditors of the defunct Bank of Beresford was held at Beresford and August Frieberg was elected receiver to succeed H. K. Webster, resigned. It was decided that two-thirds of the depositors, or rather depositors represented, should decide the appointment of the new receiver, and as banks in New York and Sioux City hold the bulk of the stock the appointment of Mr. Frieberg will have to be approved by them. Nothing definite as to the condition of the bank could be learned.

11. April 11, 1895 Union County Courier Elk Point, SD
Article from Union County Courier, April 11, 1895

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Continued-Mrs. R. A. Hudson's millinery opening. # CIRCUIT COURT. # SPring Session Opens on Next Tuesday. The circuit court for Union county which opens on next Tuesday will have the largest calender to dispose of that any term has had for some time. In all there are forty cases-nine criminal and thirty-one civil. The cases and their nature are as follows: # CRIMINAL. State vs. Mathias Salseth. Larceny. State ys. John Harrington. Larceny. State vs. W. Z. Dafoe. Petit Larceny. State vs. Frank Ferguson. Libel. State vs. Wesley Guilame and Joseph Fountain. Violation of liquor law. State vs. Terry Collins and Alfred Graville. Violation of liquor law. State vs. David Stone. False pretense. State vs. James Frank. False pretense. State As. W. T. Robbins. Unlawful selling martgage property. # CIVIL. The National bank of Sioux City vs. A. and B. Schmidt. To recover a note. Two cases. Mary P. and Maria C. Adams vs. J. M. Compton, receiver. To declair certain monies deposited in bank of Beresford a trust fund. Johh Morris Co. vs. Union county to recover an act. James A. Miller vs. Albert Shurtleff and D. M. Dickerson. Redemption and accounting. Stephen B. Savage vs. J. A. Miller. Action to set aside a deed. F. E. Watkins vs. W. T. Robbins. To recover on a note. Hance Murphey, trustee and J. A. Miller vs. E. W. Cook and Guy Cook. Ejectment. F. M. Gilmore vs. B. M. Bnink. To set aside a deed. C. Parker, A. B. Parker and E. W. Miller vs. William Vinson and Clara Vinson. Ejectment. Sioux National bank vs J. W. and Harriett Wass. To secure a note. Rosa L. Wood vs. E. Steinau. To recover for goods sold. In the matter of the application of H. C. Hichborn for a druggist's permit. Appeal from county court. Jacob Scheatzel vs. Chris Peterson et al. Appeal from justice court. Northwestern State bank vs. Elk Point opera house. Recover on note. New trial. The National bank vs. Walter Yorker, assignee of C. D. Farrand. To recover a note. James B. Wild and Bro. vs. J. H. Gurney to recover an account. Clarence Waterburry vs. Nellie Waterburry. Action for divorce. John Curry vs. John C. Curry, executor of estate of Michael Curry, deceased. Action to quiet title in plaintiff. The Wayne Oil Tank company, a corporation vs. George H. Rust. Action on account. Ira Linch vs. H: A. Stroud and Fred Linch. On contract for wages. C. A. Wilson vs. I. N. Flanigan, administrator of estate of Mary J. Norris, deceased, and F. M. Gilmore. To recover money. I. N. Flanigan vs. John Dack and Mrs. John Dack. Foreclosure of mortgage. In the matter of the estate of Stephen B. Savage, deceased. Appeal from county court. Gunner Sevenness and John A. Newgard vs. Clara, Maud and Oscar Lund, minors; Andrew Martin, guardian; Inger Peterson and J. M. Talcott. Action for partition. Mary Kelley vs. James Kelley. Action to seperate maintenance. J. A. Miller vs, M. A. Moore. Foreclosure of mortgage. Louis D. Leteller and C. E. Gantt vs. Isaac Moore. Action to quiet title. Peter Peterson and James S. Teller vs. Simon McInery, Peter Callahan, Margaret Callahan and Mary McInery. To set aside a deed, R. Reedy vs. the State Insurance company. Action for return of note. Adeline Keller and William H. Keller vs. S. S. Kegarice

12. September 26, 1895 Union County Courier Elk Point, SD
Article from Union County Courier, September 26, 1895

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AMES A FREE MAN The Ex-banker of Beresford and the High Roller of tHe Northern End Is Given His Liberty, He Departs Towards the Rising Sun and Joins His family in Iowa, Yesterday (Tuesday) in the circuit court Judge Smith rendered his decision upon the demurrer in the famous ex-Banker Ames case, whose sudden flight from Beresford occurred in the panicy times of 1893. The judge sustained the demurrer which in effect dismissed the indictment and gave Mr. Ames his liberty. The point raised in the demurrer was that the indictment did not set out properly what would constitute an offence under the laws of the state. The indictment was "for receiving deposits in a bank when the bank was in solvent." It was in May 1893 that Ames who was conducting the Bank of Beresford suddenly left town and failed to return. An investigation revealed that there was not enough assets to pay ten cents on the dollar to the depositors. He was first indicted at the September term of 1893. The indictment was found defective and in April 1894 another indictment was found which proved as defective as the former one on some technicality. Then in April 1895, French of Yankton and Sullivan of Sioux City entered the case but they did no better than States Attorney Keller and it has been conclusively proven that under the statutes the evidence was lacking to convict Ames of any crime. The criminal cases against David Stone, Walter Salseth, John Harrington and Frank Ferguson were dismissed. When the calendar was cailed by the judge it was found that there was little business to transact as compared with the last term. The suit of Stephen B. Savage vs. J. A. Miller, which is an action to set aside a deed, was fixed for trial. That of J. A. Miller vs. A. Shurtleff and D. Dickerson, involving the same land, will also be tried. COURT NOTES. August Frieberg, one of the ablest lawyers in the north end, is attending court. Ex-Banker Ames left on Tuesday afternoon, He was smiling wildly and broadly. A new carpet covering the stairway in the court house has been put down. The petit jury reports for duty on Thursday.