20379. Hoven State Bank (Hoven, SD)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 1, 1930*
Location
Hoven, South Dakota (45.244, -99.777)

Metadata

Model
gpt-5-mini
Short Digest
9f6230e3

Response Measures

None

Description

Articles indicate Hoven State Bank was already closed (suspended/permanently closed) by early 1931 amid allegations of improper handling of closed-bank deposits and embezzlement/excessive loans by its president Thomas (O')Brien. No run on the bank is described. Closure appears permanent; the former president was later convicted and sentenced (Sept 15, 1931).

Events (2)
1. January 1, 1930* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed amid allegations of misuse of closed-bank deposits, excessive loans to stockholders and embezzlement by the bank's president (Thomas O'Brien).
Newspaper Excerpt
the Hoven State bank, owned closed last year
Source
newspapers
2. September 15, 1931 Other
Newspaper Excerpt
Thomas O'Brein, former president of the closed Hoven State bank, pleaded guilty ... He was sentenced to four years in the state penitentiary.
Source
newspapers

Newspaper Articles (6)
1. February 11, 1931 Argus-Leader Sioux Falls, SD
Article from Argus-Leader, February 11, 1931

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REPORT NOT EXPECTED Former Bank Department Superintendent Charged With Juggling Accounts Pierre. Feb. that closed depositors throughout South Dakota will more than as result of deposits of funds by Fred R. Smith. former state superintendent of banks. in the Farmers State bank at Platte were made today by Attorney General M. Q. Sharpe. In his third banking department report. attorney general told deposits of closed bank in banks at Hoven and Kimball, that "at least through the policy of weak The report. placed before the legislature this morning. that Farmers bank which by utterly and had been so for at least three Asks Funds for Probe Mr. under fire last charged huge the Platte report said that closed bank and deposit had the Mr that the $5,000 for the that his charges phasize of corrective general legislation should be provided to certain the utdegree of and the of in the vicinity closed bank through liquidation which the funds Unexpected Today's the filing generally report to Mr. Sharpe's report last March on the of the authorized by the 1929 of Attached report was totaling 201 closed accounts on deposit at Platte bank it closed last the Hoven State bank. owned closed last year by Thomas president Dakota the attorney there had been of banks' funds. He list of Mr. Sharpe also discussed the closed Kimball State at near he abnormal closed bank of its and of its capital He funds from 57 defunct banks had on deposit when closed In again denouncing the policies Mr. Smith banking suthe attorney general alleged required Smith on corhelp the condition of the Platte Tells Notes He described arbitrary expanalleged have Smith with Farmers Credit corporation of which ormer listed the principal officer The the port declared, used in juggling sums time certificates of deand funds posits, accounts The went into detail in deand said that when Platte bank among other excessive loans' were totaling made in Smith's name on the Farmers' Agricultural Credit Sharpe said that Smith had put closed bank accounts the Farmers State the first the abnormal bank into Sharpe bank have four or five years ago. Denounces Bulow The attorney former Bulow for failing banking charged Smith stration and asked his removal. said: Sharpe Had Governor Bulow at the time this report filed with with any firmness at or had he given any support the recommendations of report, entire saved to the depositor closed banks Even by the report said that more than would be lost at the Platte In his introduction, Sharpe said: due to many safe and efficient bankers South Dakota report that recent events that the bank at Pierre and the of department never of wishes and policies South bankers whole. has plainly shown to us that the true conditions banking partment handling closed funds the bankers of this state as whole and most of them had no of the was being by the banks nor by small group lobby Pierre claimed to represent the banking business. (Continued on page 2; column 5)

2. February 12, 1931 The Daily Plainsman Huron, SD
Article from The Daily Plainsman, February 12, 1931

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Bill Is Introduced Asking Immediate Funds For Inquiry Governor Green Backing MoveTo Secure Thorough ment Audit of Smith's Banking Transactions Once. Feb. for furthclosed bank fund deinvestigation Fred Smith, former state posits by banks, were under superintendent with backing of Governor way today Green. General M. Sharpe's Attorney charges yesterday that least public funds would be lost in three banks through Smith's policies, and the former's for audit. brought quick action from the legislature. Carrying an emergency clause which would make effective bill powers the and $5,000 attorney general for that annual introduced both houses by the Passage of the bill. and action by the provide funds put Sharpe in make the proposed audit soon legislative authorization given. The attorney audit of the closed general asked Farmers State Bank of Platte, owned by Smith's relatives. which reported $1,000,000 closed bank more than funds would be lost to depositors. Wants Department Audit The other banks in which Smith of depositing large amounts accused closed bank funds the Hoven State Bank and the Kimball State Bank, both suspended. Governor Green said he would support Sharpe's request for an audit the bank" Platte. The executive would an audit also said approve the State Banking department order that Ruden Bryant, who placed Smith banking superintendent, could "start with clean state." funds, the bill preBesides providing sonted yesterday set up machinery for investigations by the attorney eral when requested by either both legislative houses. Under the the general could all records of state subpoena and compel testimony Mr. who informed the state court before his month that closed bank deosits will lost, did comment today on Sharpe's latest charges. Legislative ing committees meetings Sharpe's report was filed but made statements the attorney for "corrective Jegisla- New Measures Up A few hours after Sharpe's report was filed, however, three banking measures introduced the senate. One would prevent deposit of large surhs closed bank money in single deposisuch Smith was accused of making the Farmers State Bank Platte. Introduced scnate banking mittee, the bill would limit the amount closed bank funds which the superintendent of banks deposit any one institution the combined capital and surplus of the depository. Frei Wagner presented bill limit loans by state banks to any dividual corporation to per the bank's capital and surplus. The limit per cent. other was bill permit banks to pledge their assets to protect school funds. banking bill passed by the senate Tuesday, upon unfavorably yesterday by the house banking committee. was the make wilful and malicious derogatory banks or trust companies felony.

3. February 12, 1931 Argus-Leader Sioux Falls, SD
Article from Argus-Leader, February 12, 1931

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FUND, APPROVAL OF INVESTIGATION GIVEN BY SOLONS Sharpe's Charges of Big Loss in Public Funds Brings Quick Action AUDIT WILL BE PUSHED Attorney General Will Be Able to Make Check Following Legislation Pierre, Feb. for further of closed bank fund deposits by Fred R. Smith. former state superintendent banks, were under way today with of Governor Warren E. Green. Attorney General M. Q. Sharpe's charges yesterday that at in public funds would be lost in three banks through Smith's policies. the former's recommendation an brought quick the legislature. an which effective mediately investipowers of the attorney and annual for introduced in houses the joint Platte Bank Inquiry Passage bill, and action by the to provide funds, put Sharpe in position to make proposed as soon as legislative ization given. The attorney eral an audit of Farmers Platte, owned by Smith's he ported more than closed bank funds would be lost to deposThe other banks in which Smith of depositing amounts bank the Hoven State bank and the KimState said he support request for audit of the state department in order that Ruden. who replaced Smith as superintendent, could "start a clean Besides providing the bill presented yesterday would machinery for investigations by attorney either both houses. Under measure, attorney general examine all records of state departments, subpoena witSmith Silent who last month that no closed bank posits not comment today Sharpe's latest charges. Legislative after report filed but made no statements on the attorney general's for few hours after Sharpe's port filed. three ing were introduced in One would deposit of bank money in single Smith accused of making the Farmers State bank Platte. Introduced the senate bankthe bill limit closed funds which the can in any institution the combined and surplus the New depository Asked Frei presented bill to limit loans by banks any corporation to percent the bank's surplus. The present 20 per- other banking measure was bill to permit banks to pledge their assets to protect funds. Another banking passed by the senate Tuesday. was upon yesterday the banking committee the measure to make willful and gossip derogatory banks or trust companies felony.

4. February 12, 1931 The Weekly Pioneer-Times Deadwood, SD
Article from The Weekly Pioneer-Times, February 12, 1931

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CHARGES JUGGLING SHUT BANK FUNDS (Continued From Page said that when Platte bank pended "among other loans" were notes, made Smith's the Farmers Agricultural Credit corporation. Sharpe that put closed bank accounts the Farmers State Bank since first report. abnormal amounts closed bank funds poured into Sharpe the Smith bank have closed four five years Denounces Bulow The attorney general denounced forGov. Bulow failing follow the banking which charged Smith asked his removal. Sharpe said: "Had Governor Bulow at the time report filed him intelligence firmness had given support this entire sum the depositor creditors closed throughout Even more than million would be the bank. In Sharpe said: Most Banks think due the many efficient bankers of Dakota and that report lobby Pierre the banking were truly of and policies South whole. has Dakota that the true the the closed bank funds known the this not and most of them the sitbeing by the banks nor the which the bank lobPierre and claimed to banking Since the true has become known bankmost the reliable and have been the first the demand the and other the and provide faithfully adthereof which bring the banking back to the plane and confidence where public belongs.' Smith's criticized during the 1929 when headed the "banker's lobby here. authorized the torney general to investigate the partment Two Reports Before The first made recomchanges the state banking laws. addition charging and asking Smith's removal. Bulow refused to and the political campaign was charged "rocking the Sharpe first supplemental report followThe Platte the Commercial State Bank went into furdetails shift ther funds when investigation pending Upon his month ago, Gov. Green asked Smith resign. He refused and the case the supreme Soon "show cause" ouster hearing opened by Mr. Sharpe, resignarepresented He by Ruden. of Bryant. telling transfers accounts made Platte by Mr. said "that times when the true appears of the would show condition million dollars closed bank counts the published or $900,000 show The only logical checking accounts. deduction that some arbitrary deducted the time called report for the purpose exhibiting public smaller amount than actually said some of ledger Mr. Sharpe involved are missing from the sheets Platte bank. Loans carired the statement as exceed Sharpe said to Bonds' account consisted only Sioux City grain exchange memberships Smith declared no closed Mr. bank money would lost petition filed Platte deposits last month before he the resigned. List Banks The of banks money the State Bank deposit included towns: Rapid Kadoka, Thunder Newell. Timber Fort and White Springs, River the of Smith An account in name banks and guaranty fund comthe depositors also For some cities more than banks the listed having closed were as in the Hoven State bank money Bison, Deadwood. Presho. Lake, doka. Fort PierSturgis, Colome, and Hot Springs State the In the Belle Fourche, Hot ReliRapid Vivian. Would Provide Funds the senate the joint provide general $5,000 annually the attorney investigations ordered by either house senate, and would strengthen the for inquiries. From the senate banking committee measure limit of closed bank money that the banking perintendent can deposit in stitution combined total the capital and surplus of the depository. from statement GoverWarren Green that would supSharpe's request for thorough audit "Smith's bank," officials volved declined to comment on the disclosures. Tax State Owned Lands The most important nine bills passed in senate today house measure permitting taxation state owned rural credits land thorized by the constitutional amendment the last bill would permit county purposes mills school exclusive of interest and sinking fund Other passed in the senate minor measures. bill to require the use pasteurized cream and manufactured for sale was Several measures were passed by the house. Insurance $5,000 from debts decedent and his beneficiaries under the Another providlicense annually for person weighing scales. permitted county from cents by another measure The senate bill defining and providing for persons was similar house origin was Another senate upon permits the finact within Two measures elections passed bill for the the fish for four and six year terms. Neither house meet tomorrow. the of Lincoln's birthday.

5. August 7, 1931 Argus-Leader Sioux Falls, SD
Article from Argus-Leader, August 7, 1931

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O'BRIEN IS SILENT ON BANK CHARGES Bonds Furnished Total $4,500 for All Three ing Will Be August 19 O'Brien, former Hoven banker arraigned yesterday on charges today had to Aberdeen Gettysburg where he preliminary hearing on three counts August O'Brien, who two years was South Bankers' association, refused comment on his arrest. bonds Gettysburg totaled for three counts. 'Brien said. and not $13,500 count. Two of the allege emfrom the Hoven State bank, closed, which he president, and third that O'Brien permitted excessive loans to stockholders. Officials at Pierre today refused the against O'Brien. The Gettysdirected Charles Warren Huron, acting attorney The torney general's office has brought against Fred R. Smith, former faces trial September at Pierre.

6. September 15, 1931 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, September 15, 1931

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Article Text

South Dakota Banker Enters Penitentiary Faulkton. S. D., Sept. 15.-(A)) Thomas O'Brein, former president of the closed Hoven State bank, pleaded guilty Monday to charges of making excessive loans to stockholders and to two charges of embezzling closed bank funds. He was sentenced to four years in the state penitentiary. O'Brien was sentenced by Circuit Judge J. H. Bottom to four years on each of the two embezzlement counts. involving sums of $3,600 and $2,000, respectively, and to three years on the third count of making excessive loans. The sentences are to. run concurrently. In custody of Sheriff Frank Meehan, Potter county, O'Brien was taken to the penitentiary at Sioux Falls