20461. Farmers State Bank (Platte, SD)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
January 29, 1931
Location
Platte, South Dakota (43.387, -98.845)

Metadata

Model
gpt-5-mini
Short Digest
b8be1e62

Response Measures

Accommodated withdrawals, Full suspension, Books examined

Other: Receiver appointed; attorney general investigation into former state superintendent Fred R. Smith.

Description

Newspaper accounts describe heavy withdrawals/a run on the Farmers State Bank in late January 1931, followed by suspension/closing and appointment of a receiver in early February 1931. Attorney General Sharpe's report accuses Fred R. Smith of misapplication/juggling of closed-bank deposits, indicating bank-specific adverse information as the trigger. The bank did not reopen; a receiver was appointed (per Feb 10 article).

Events (3)
1. January 29, 1931 Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy withdrawals driven by problems tied to Fred R. Smith's alleged misapplication/juggling of deposits and related revelations about closed-bank funds.
Measures
Bank attempted to remain open (weathered heavy withdrawals and opened its doors that morning).
Newspaper Excerpt
The Farmers weathered the heavy run upon it to to open doors this morning.
Source
newspapers
2. February 1, 1931* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Following disclosures and allegations in Attorney General Sharpe's report regarding improper handling of closed-bank deposits by former Banking Superintendent Fred R. Smith, the Farmers State Bank closed/suspended operations (loss of confidence from mismanagement allegations).
Newspaper Excerpt
Platte Without Bank After Third Closing ... closing of the Farmer's State bank at Platte marks the elimination of the third of three leaving the town without bank.
Source
newspapers
3. February 10, 1931 Receivership
Newspaper Excerpt
Bank Receiver Chosen Platte, Frank Penthin ... has been selected by Ruden, state superintendent of banks, as receiver in charge of the Farmers State bank, this city. He has taken charge the bank. ... Ruden has been selected by FL. Ruden, state superintendent of banks, as receiver in of the Farmers State this city. He has taken charge the bank. (Article notes appointment of receiver.) Also: Platte, Frank Penthin, of Hayti, D., has been selected by Ruden, state superintendent of banks, receiver in charge the Farmers State bank, this city taken charge the bank. (Sioux City Journal, Feb 10.) Additionally, AG Sharpe's Feb. report alleges juggling of deposits by Fred R. Smith, strengthening case for receivership and permanent closure.)
Source
newspapers

Newspaper Articles (7)
1. January 29, 1931 Argus-Leader Sioux Falls, SD
Article from Argus-Leader, January 29, 1931

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Article Text

Platte Without Bank After Third Closing (Special Platte, closing of the Farmer's State bank at Platte marks the elimination of the third of three leaving the town without bank. The other two banks failed last April, the Farmers weathered the heavy run upon it to to open doors this morning. The direct cause for the all the Platte banks may laid to the attack them AttorneyGeneral and is the over the banking situation in South Da- kota, waged by two factions of the republican party in this Due to its as ping and Platte will probably have or difficulty geting another bank, and already propositions bank been The board of directors of the Platte Community passed tions which govern the founding new banking institution in

2. February 10, 1931 The Sioux City Journal Sioux City, IA
Article from The Sioux City Journal, February 10, 1931

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Wenzel. southwest of town. garage and storage with automobile and harnesses. The blaze kept from other farm buildings. Some Insurance was carried on the Wallace. R. D.-Special: During the temporary absence of Mr. and Mrs. Oluf Larson from their home here. the house destroyed fire. Origin of the fire un. known. Some household goods were saved by neighbors. 17 MILITARY STUDENTS RECEIVE COMMISSIONS enteen juniors the University of South Dakota have been cadet second given lleutenants by the military departThose receiving commissions follow: Clifton Anderson. Vermillion: Harold Corey. Murdo: Ralph Leer. Vermillion: Lester Olson, Vermillion: James Sweet. Whitmore, Sloux Falls: Glen Wohler. Watertown: Vern Carter, Castlewood: Crandall. Hetland: Johnson, Alcester: Steve Parkston: W. Brown. Elk Point: Falls: George H. Watertown: Lyle Kleinjan. Gregory: Harold Vermillion, and Frank Sevrens. Isabel. RESIDENTS OF STURGIS ASKED TO SAVE WATER Sturgis, S. D.-Special: Conservation of the city's water supply asked of Sturgis residents, because of shortage of water due to lack of rainfall. Last fall the Sturgis waterworks company added facilities the plant to store 9,000,000 gallons more water in storage tanks. no that there danger water "famas long measures used. Snows from the mountains are expected to fill the by April Water shortages have been ported other places, especially the Pine Ridge Indian reservation. $20,000 IN DIVIDENDS ARE PAID OUT BY CREAMERY S. D.-Special: More than $20,000 In dividends were distributed during the past year to stockholders the Creamery company. was shown by the annual report of the The business large volume and the earnings very satisfactory. The manager of the creamery H. Fleming. who has been re-elected. All the members of the board of directors were re-elected and the following officers chosen: Neugebauer: secretary, William Wenzel: treasurer, Sam Doering. SLEEPING SICKNESS VICTIM OCCUPIES HOTEL ROOM Timber Lake, D.-Special: victim of sleeping sickness, transient gave his name August Finger, former resident of Faith, being cared for In Timber Lake. He here about month ago and has room In hotel. About week ago Finger went to sleep and slept continuously for three nights and days. He then returned to normal condition for short time, going to sleep again and all efforts to awaken him have failed. Since going the second time he has awakened only for Lead, S. the $300 worth of goods stolen from the Penney store In Lead recovered with the arrest of Wilson Roberts, and Filmore Roberts, 19, brothers, of Lead. The elder brother had concealed part of the loot in his room and the remainder found In small garage nearby. In the confession made by the they told in detail how they forced an entrance Into the store spent two or three hours selecting merchandise. The younger Roberts also confessed to robbing two pool halls last fall, when quantity of cigarets and other merchandise was taken. NORBECK WOULD GIVE MUCH LAND FOR DAKOTA PARKS thousand acres federal land in South Dakota would be that state for public park purposes under bill in the senate by Senator Norbeck, of South Dakota. for the into water with aspirin it, they revived nicely and their fragrance. The flowers are chinchereche, orchid with white blossoms. bouquet traveled more than 13,000 miles of ocean. DOGS KILL MANY SHEEP ON FARMS NEAR WAGNER the 8. D.-Special: Twenty head of lambs owned by H. Cris. were killed by dogs and about week before that an equal numthe property of Bernard Anderson. slaughtered In the same manner. Farmers own sheep been complaining bitterly about dogs running large. Fair President Named Clark, D.-Special: E. H. Day was elected president following repr. ganization the Clark cultural Fair association, which holds fairs in Clark. George Lindland chosen vice president and Jones, secretary. Mr. Jones succeeds George B. Dtto, who declined election after having served as BBC. retary for the with the exception of two years served world war, his wife secretary during the two Strange Captured Flandreau, S. D.-Special: An species rarely seen in this part the northwest was brought Flandreau by farmer and exhibThe owl very large and of more than TWINS SOON TO BE 60 YEARS OLD Herbert and Leonard Baldwin Plainview, Herbert and Leonard Baldwin, who are nearing their 60th have made Plainview their home more than 50 years, with the exception of few years when Leonlived Marcus, Ia. Both are plumbers and tinners, their shops on opposite sides of the street and they see each other every day. All their congenial because the similarity of their tastes. These brothers are great lovers outdoor pastimes and sports, especially fishing. and bird and na. ture study. They often walk miles through fields and groves. Both have store of knowledge of the life and habits the creatures of the air and field. feet. In color It is white. thinly mottied with spots of brown. The and claws very heavily covered. padded with thick, hairlike feathers. Bank Receiver Chosen Platte, Frank Penthin, of Hayti, D., has been selected by FL. Ruden, state superintendent of banks, as receiver In of the Farmers State this city. He has taken charge the bank. This bank owned the family of the former Intendent of hanks, Fred R. Smith. Railway Gives Walfs Radio Sloux Falls, Special: Through the generosity of employes of the Omaha railroad In Falls, walfs in the South Dakota Childrens home here can listen large radio, which has been Installed in the home by railroad men. The home never had had radio. Horseman Hurt In Fence Milltown, S. D.-Special: George Stainbrook, farmer, had nartow escape from serious injury when horse he was frightened and hurling him Into wire fence. One was badly gashed. and he suffered many bruises and Boys Gasoline Sloux Falls, S. Four young boys of the city were arreston the charge of stealing gasoline from storage tanks of gasoline company, and admitted the theft more than gallons. They told ficers they had hidden the stolen gasoline. airport, short distance north of Sloux Falls. management will offer taxi air school service and airport

3. February 10, 1931 The Sioux City Journal Sioux City, IA
Article from The Sioux City Journal, February 10, 1931

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TWINS SOON TO BE 60 YEARS OLD Plainview, Herbert and Leonard Baldwin, twins, are nearing their 60th birthday, have made Plainview their home more than 50 years, with the exception of few years when Leonard lived in Marcus, Ia. Both are plumbers tinners, their shops on sides of the street and every day All their congenial because the similarity of their tastes. These great lov. ers of outdoor and fishing, and bird and nature study They often miles through Both have store knowledge of the life and habits of the creatures of the air and field. feet, In color it is white, thinly mottled with spots of brown. The legs claws very heavily being padded with thick, hairlike Bank Receiver Chosen Platte, Frank Penthin, banker, of Hayti, D., has been selected by Ruden, state superintendent of banks, receiver in charge the Farmers State bank, this city taken charge the bank. This bank was owned by the family the former superintendent of banks, Fred R. Smith. Railway Gives Waifs Radio Sioux Falls, D. Special: Through the generosity of employes the railroad in Falls, waifs the South Childrens home here can listen large radio, which installed the home railroad men. The home never had had radio. Horseman Hurt in Fence Stainbrook, farmer, had narrow escape from serious injury when horse riding became frightened and bolted, hurling him into wire fence. One of his legs was badly gashed. and he suffered many bruises cuts. Boys Steal Gasoline Sioux Falls, S. D.-Special: Four young the city were arreston of gasoline from tanks of gasoline company, and the theft of more than gallons. They told officers they had hidden the stolen Renner Airport Is Sold group Sioux purchased the Renner airport, Renner. short north Sioux Falls. The management will offer taxi service. air school service and airport facilities.

4. 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)

5. 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.

6. 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.

7. August 30, 1931 Deadwood Pioneer-Times Deadwood, SD
Article from Deadwood Pioneer-Times, August 30, 1931

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FARM BOARD WHEAT PROPOSAL TO THE CHINESE New Arrangements Cover Sale 15,000,000 Bushels WASHINGTON Aug. new proposal sell bushels wheat to China went forward to that country today from the farm board It counter proposal the result China's complaints against the provisions the first offer. but Carl liams farm board member, declined give The Chinese government was understood to complained against credit and arrangements The wheat would used to feed flood sufferers in China CHICAGO WINS TITLE HOUSTON, Texas, Aug South Chicago today won the American Legion junior baseball cham pionship by Columbia, South Carolina in 14 ennings. sheets Smith's personal account which they showed disbursement of $140,000 of closed bank funds, were missing from the Farmers State Bank when examiners charge. and had to reconstructed from other sources They disputed Smith's claim that failed to benefit personally from the guaranty fund transactions listed and third against him asserting that records showed he and officers the Smith bank' receive at least part the money. Stock Gambling Charged Sharpe telegraph and telephone closed bank funds of Platte and withholding of closed bank divi dends evidence that Smith using public funvds to bolster an insolvent institution The attorney general said some evidence stock market gambling had been found. The fact that the Smith family has its property was not challenged but Sharpe that fine home built for Warren Smith, brother of the defendant apparently been paid for from public funds He said transfer to the bank was merely returning money taken from the trust fund, indicated "no particular generosity Sharpe he realized that Smith had already suffered punishment but asserted that man his fine mind and intelligence probably has earned little more rather than because had full knowledge his wrongdoing M. Bailey and Roy Willy, Sioux Falls attorneys who represented Smith devoted their arguments mainly pleas for lighter sentence.