20490. Dakota National Bank (Sioux Falls, SD)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
national
Bank ID
2843
Charter Number
2843
Start Date
November 23, 1896
Location
Sioux Falls, South Dakota (43.550, -96.700)

Metadata

Model
gpt-5-mini
Short Digest
c3d66198

Response Measures

Full suspension, Books examined

Other: Bank later had a receiver/examiner (Zimmerman) placed in charge; initial reports said no receiver would be appointed and depositors would be paid in full within three weeks and the bank would reopen, but later records (1898) show receiver involvement and investigations.

Receivership Details

Depositor recovery rate
88.4%
Date receivership started
1897-01-20
Date receivership terminated
1900-09-05
OCC cause of failure
Losses
Share of assets assessed as good
14.2%
Share of assets assessed as doubtful
52.8%
Share of assets assessed as worthless
32.9%

Description

Multiple contemporaneous reports (Nov 23-24, 1896) state a heavy run drained cash and the bank closed its doors; examiner Zimmerman placed in charge, no receiver appointed, and officers/committee expected to pay depositors in full within three weeks and reopen. Causes reported include demands by eastern correspondents and heavy holdings of depreciated real estate. No indication of a false/misinformation trigger.

Events (4)

1. December 19, 1882 Chartered
Source
historical_nic
2. November 23, 1896 Suspension
Cause
Correspondent
Cause Details
Bank closed (suspended) after demands by eastern correspondents and resulting heavy withdrawals; examiner Zimmerman placed in charge and no receiver expected as depositors were to be paid in full and bank intended to resume business within weeks.
Newspaper Excerpt
The Dakota National bank did not open this morning ... will not go into receivers' hands, but will be in charge of a bank examiner.
Source
newspapers
3. November 24, 1896 Run
Cause
Correspondent
Cause Details
Heavy withdrawals (a 'heavy run') precipitated by demands from eastern correspondent banks and concern over the bank's large holdings of depreciated real estate.
Measures
Bank officers sought reorganization; sixty business men pledged to continue dealings with local banks to avoid contagion.
Newspaper Excerpt
The Dakota National bank is closed on account of a beavy run.
Source
newspapers
4. January 20, 1897 Receivership
Source
historical_nic

Newspaper Articles (22)

Article from The Indianapolis Journal, November 24, 1896

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Other Business Troubles. PHILADELPHIA, Nov. 23.-A bill in equity was filed in the United States Circuit Court to-day by George A. Lee, of New York, against the Pennsylvania Traction Company, of Lancaster. Lee says he is a holder of $10,000 of the bonds issued and secured by the mortgage of Jan. 5, 1894, and of bonds to the aggregate amount of $700,000, issued under and secured by the mortgage of April 5, 1894. Lee claims the company has defaulted in the payment of interest, and he asks that a receiver be appointed. BUFFALO, N. Y., Nov. 23. - That the Bank of Commerce will go into the hands of a receiver now seems inevitable. All attempts at reorganization have proved fruitless. Other bankers are not inclined to assist, and the stockholders of the suspended bank cannot agree now among themselves any more than they could before its affairs reached such a shape as to compel suspension. WASHINGTON, Nov. 23.-The Controller of the Currency has received information of the failure of the Dakota National Bank, of Sioux Falls, S. D. The bank has a capital of $50,000. and at the time of the last report it had a surplus of $50,000 and liabilities amounting to $230,000, exclusive of stock. Bank Examiner Zimmerman has been placed in charge. NEW YORK, Nov. 23.-Schedules in the assignment of Albert B. Hilton, who conducted business under the firm name of Hilton. Hughes & Co., successors to A. T. Stewart & Co., were filed to-day. The schedules show liabilities to the amount of $1,891,576; nominal assets, $1,600,342, and actual assets of $732,174. LONDON, Nov. 23.-The failure is announced of Webster & Bennie, warehousemen, with liabilities estimated at £180,000 ($900,000) and estimated assets at £120,000 ($600,000.)


Article from Deseret Evening News, November 24, 1896

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A Bank Closes. SIOUX FALLS, S. D., Nov. 24.-The Dakota National bank is closed on account of a beavy run. The bank is heavily loaded with real estate of a depreciated nature. The fficers hope to reorganize and resume. The last listement showed $816,000 deposits; loans and discounts, $198,000.


Article from The San Francisco Call, November 24, 1896

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Failure of a National Bank. WASHINGTON, D. C., Nov. 23.-The Comptroller of the Currency this morning was advised that the Dakota National Bank of Sioux Falls, South Dakota, had closed its doors. No reason is assigned. Examiner Zimmerman was notified to take charge.. The October report shows capital stock $50,000, surplus $50,000, due other banks $32,000, due depositors $175,000, borrowed money $22,500.


Article from The Madison Daily Leader, November 24, 1896

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THE CITY. LOCAL BREVITIES. Wheat 64; flax 55. Arrivals from the west to-day were G. R. Farmer and E. V. Coon. Geo. Simpson returned last evening from Pipestone with his invalid father. Weather report: Cloudy with rising temperature to-night and Wednesday. John LaRue departed this morning for Tennessee via, St. Louis and Nashville. Arrivals on the evening train were Wm. Tobin, J. F. Stahi, A. A. Abbott, J. Leslie Thompson. Hugh Neill and wife of Marshall, Minn., arrived on a visit to the former's brother, Henry Neill. Landlord Poole of the Poole House, Lake Preston, is sojourning in the city while taking Medical treatment. The regular mothers meeting which was to have been to-morrow afternoon, has been postponed to Thursday of next week. Clerk Preston proved up to-day Jas. McLellan of Orland on his homestead quarter, section 23-105-54 and Ed. O'Connell of thesame town on quarter, section 15-105-53. A patent has also arrived at the office for Thos. W. SulliVED on the sw1/4 section 11-108-54. The "Brownies in Fairyland," will be presented at the opera house next Monday evening, Novembey 30. The mnsic will be under the direction of Prof. Ireland and the orchestra will be in attendance. No one should miss this rare treat. The weather clerk in the Palace Drug Store has received a new set of signals from the government weather bureau and says he will now make us some good weather. The only new flag he did not need was a "blizzard" flag. The latter is used so seldom in South Dakola that one would last a hundred years. Sioux Falls dispatch, 23: No receiver will be appointed for the Dakota National as the bank expects to pay every depositor in full in three weeks and to resume business. The statement of Oct. 6 show deposits of $175,592; capital $50,000; surplus 50,000; loans and discounts $186,000. The trouble resulted from demands by eastern correspondents and by a series of unfortunate coincidents, not resulting from lack of contidence in the bank. Sixty business men last night signed an agreement to continue their business with the other banks in the ordinary way, and the trouble cannot affect the other banks, which are in exceptionally good shape, A visit to Sheriff Fex's bastile reveals eight jail birds in the two cages at this time and the amount of "grub" the officer has to poke into these cells in the course of a day is quite amazing. The register gives the record of the inmates as follows: Peter Beucher, selling intoxicating liquor, awaiting trial in February. When Peter went into the liquor selling business he was assured that if he ran up against the stone wall he would be bailed out, but the bail has never come. Thos. Farrell, petit larceny, 25 days. John Wilson, petit larceny, 16 days. Jas. Miller, petit larceny, 16 days. Harry Young, Petit larceny, 16 days. Jas. Smith, petit larceny, 17


Article from Omaha Daily Bee, November 24, 1896

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BANK SUSPENDS FOR A SHORT TIME. Dakota National of Sioux Falls Forced to Close Its Doors. SIOUX FALLS, S. D., Nov. 23. -(Special Telegram.)-The Dakota National bank, one of the oldest in the city, did not open this morning. The bank will not go into receivers' hands, but will be in charge of a bank examiner. Depositors will be paid in full within three weeks and the bank will reopen for business. The bank has a capital of $50,000, a surplus of $50,000 and deposits at its last statement, October 6, of $175,592. The bank's embarrassment resulted from demands by eastern correspondents and is only temporary. Sixty business men held a meeting this forenoon, and as a result a run on other banks will be avoided. WASHINGTON, Nov. 23.-The comptroller of the currency has received a report of the failure of the Dakota National bank at Sioux Falls, S. D. The bank has a capital of $50,000, and at the time of the last report it had a surplus of $50,000 and liabilities amounting to $230,000 exclusive of stock. Bank Examiner Zimmerman has been placed DO TIE in charge. in 100


Article from The Dalles Daily Chronicle, November 25, 1896

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A Heavy Run the Cause. SIOUX FALLS, S. D., Nov. 24.-The Dakota National Bank has closed, on account of a heavy run. The bank was heavily loaded with real estate of a depreciated nature. The officers hope to reorganize and resume. The last statement showed $816,000 deposits; loans and discounts, $198,000.


Article from The Roanoke Daily Times, November 25, 1896

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EFFECTS OF A RUN. Sioux Falls, S. D., Nov. 24.-The Dakota National Bank has closed its doors on account of a heavy run, which left less than $1,000 in cash on hand. The bank is heavily loaded with real estate of a depreciated nature, but the officers hope to reorganize and resume business. The last statement of the bank, printed October 8, showed $176,000 deposits and loans and discounts of $198,000.


Article from The Madison Daily Leader, November 25, 1896

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Suspension Followed a Run. Sioux FALLS, S. D., Nov. 25.-The Dakota National bank has closed its doors on account of a heavy run, which left less than $1,000 in cash on hand. The bank is heavily loaded with real estate of a depreciated nature, but the officers hope to reorganize and resume business. The last statement of the bank, printed Oct. 8, showed $176,000 deposits, and loans and discounts of $198,000.


Article from The News & Observer, November 25, 1896

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M'KINLEY TIMES IN DAKOTA. Sioux Falls, S. D., Nov. 24.-The Dakota National Bank has closed its doors on account of a heavy run which left less than $1,000 in cash on hand. The bank is heavily loaded with real estate of a depreciated nature, but the officers hope to reorganize and resume business. The last statement of the bank, printed October 8, showed $176,000 deposits and loans and discounts of $198,000.


Article from Union County Courier, November 26, 1896

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Sioux Falls Bank Fails. The Dakota National Bank, one of the oldest in Sioux Falls,did not open Monday morning. The bank, it is said, will not go into a receiver's hands, but will be in charge of the bank examiner. It is said depositors will be paid in full within three weeks and the bank will reopen for business. The bank has a capital of $50,000, surplus of $50,000 and deposits at last statement, October 6, of $175,593. The bank's embarrassment resulted from demands by easiern correspondents and is believed to be only temporary. Sixty business men held a meeting and a run on other banks, it is believed, will be avoided.


Article from The Kimball Graphic, November 28, 1896

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A New Elevator. Vermillion, Nov. 25.-McKaull, Webster & Co. have begun the constructio: of a large elevator to be used by them for buying grain. It is being built on the Austin lot in the same place that the Newton elevator stood before the flood of 1881. The Newton elevator was first built in this city in 1873. The farm ers are very much in hopes of better prices for grain, as there is likely to be close competition between this new firm and the Thompson & Lewis company, who have been the sole buyers for a number of years. The Milwaukee company has cut down its freight train service from daily to semi-weekly. It inconveniences the cattle and grain buyers to a great extent. A kerosene oil stove overflowed while burning yesterday in the home of J. W. Grange. The stove was in the bedroom in the second story and was not discovered until it had gotten a pretty fair start. In the room was stored several hundred dollars' worth of dresses, all of which were more or less damaged by the smoke and oily soot. The fire was discovered before much damage was done. The Missouri river crossing is in ex. cellent condition. Nebraska farmers are marketing their grain and hogs at the Vermillion markets. Carr Had Flown. Miller, Nov. 25.-When Sheriff Streif went to arrest Herbert Carr, on the charge of rape, he found he had left for England with money furnished by his wife. Carr was also recently held for adultery and his bondsmen will have to put up. A Dakota Bank in Trouble. Sioux Falls, S. D., Nov. 23.-The Dakota National bank, one of the oldest banking institutions in the state, went into the hands of the bank examiner this morning. No receiver will be appointed as the bank expects to pay every depositor in full in three weeks and to resume business. The statement of October 6 shows deposits of $175,592, capital $50,000, surplus $50,000, loans and discounts $186,000. The trouble resulted from demands by eastern correspondents and a series of unfortunate coincidents not resulting from lack of confidence in the bank. Sixty business men last night signed an agreement to continue business with the other banks in the ordinary way, and the trouble cannot affect the other banks which are in exceptionally good shape.


Article from The Dakota Chief, December 3, 1896

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Sioux Falls Bank Fails. The Dakota National Bank, one of the oldest in Sioux Falls, did not open Monday morning. The bank, it is said, will not go into a receiver's hands, but will be in charge of the bank examiner. It is said depositors will be paid in full within three weeks and the bank will reopen for business. The bank has a capital of $50,000, surplus of $50,000 and deposits at last statement, October 6, of $175,593. The bank's embarrassment resulted from demands by eastern correspondents and is believed to be only temporary. Sixty business men held a meeting and a run on other banks, it is believed, will be avoided.


Article from Warren Sheaf, December 3, 1896

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THE NEWS. Compiled From Late Dispatches. DOMESTIC. The visible supply of grain in the United States on the 23d was: Wheat, 59,971,000 bushels; corn, 18,150,000 bushels; oats, 12,208,000 bushels; rye, 2,657, 000 bushels; barley, 6,146,000 bushels. Mrs. Casper Laboy, of Nesquehoning, Pa., was stabbed to death and her husband fatally slashed by robbers. At Delmont, Pa., John Tarr, aged 25 years. shot and killed his wife and then committed suicide. They were not living together. Patrick Meagher, a justice of the peace at Gilberts, III., and his mother were suffocated by coal gas at their home. A temporary prison at Mena, Ark., was burned and Tom Casey and H. Hopkins, confined for disorderly conduct, perished in the flames. Miss Clara Barton, president of the Red Cross society, in her report of the work of the Armenian relief expedition in Asia Minor says that 50,000 Armenians will starve unless helped by May 1. The report of Gen. J. C. Breckinridge, inspector general of the army of the United States, speaks highly of the army as being in as good condition in respect to instruction, discipline, equipE ent and supplies as ever before in its history. For the first time in nearly 20 years the national republican party closed the campaign with all its debts paid and a surplus of $100.000 in its treasury. At Weir, Mass., Frederick Luther. an electric fireman, shot his boarding mistress, Mrs. Abby F. Barber. and then killed himself. No cause is known. Mrs. F. A. Walker and her daughter Mabel and Mary Overland. a domestic, were fatall, burned in Minneapolis by the overturning of a gasoline lamp. Mably & Co., one of the leading retail clothing firms in Detroit, failed for $400,000. The Dakota national bank of Sioux Falls, S. D., closed its doors with liabilities of $230,000. The board of publication of war records has submitted its annual report to the secretary of war. This work has been in progress for 21 years and is about completed. It has cost thus far $2,334,328. Seven sophomores of Princeton (N. J.) university have been suspended for the part they played in the hazing of 11 freshmen. Twenty-six banks in eastern and southeastern Nebraska have been burglarized with losses amounting to over $30,000 within the past two months. It is officially announced that Troop A, Ohio national guard, of Cleveland, will act as the military escort of President-elect McKinley at the inauguration ceremonies in Washington. Alf and Bob Holly brothers) were killed at a negro cake walk at Selma, Ala., by the Hayes brothers, Henry and Jack. A disastrous prairie fire swept over the Seminole country near Rochelle, o. T., and 16 persons were burned to death. The Davies county savings association at Gallatin, Mo., an old banking institution, closed its doors. Joseph Green and Mike Inhofer, two West Newton (Minn.) farmers, were killed instantly by the explosion of a thrashing engine. Rev. James Miller, pastor of Grace Methodist church at Bloomington, III., was murdered in Decatur, where he had gone to visit his son. Robbery was the motive. The differences between the window glass workers and the manufacturers, which has kept the factories of the country idle since May 30, were settled at a conference in Pittsburgh and 15,000 men will be at work again December 15. Baltimore Methodists erected a bronze tablet to mark the site of the Lovely Lane meeting-house, where the Methodist Episcopal church was organized in 1784. Mrs. Swearnier, the wife of a rancher living in Lewis county, Wash., cut the throats of her three little girls, aged respectively five years, three years and nine months, and then used the knife on herself. She was insane. The body of the late George W. G. Ferris, inventor of the Ferris wheel, was cremated at Pittsburgh in accordance with a request made by him before his death. Fire destroyed five of the best business houses in Atlama, Tex., the loss being $100,000.


Article from Democratic Northwest and Henry County News, December 3, 1896

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THE ESSENCE OF THE NEWS OF THE WORLD IN A COLUMN. Important Rvents of the Week From All Sections of the Globe Condensed Into a Few Lines For Busy Newspaper Readers. Tuesday. Lady Scott or her friends are accused of lampering with the jury. The natives of the New Hebrides islands Rre being sold like sheep. The Dakota National bank of Sloux Falls, S. D., closed its doors. Joe Blackburn of Kentucky denies that be is out of the senatorial race. The system of allowing overtime claims of letter carriers is soon to be abolished. John Gorman was arrested in Cincinnati for embezzlement committed in New Haven. The steam launch Pilot exploded at Cal10, Ills., killing one man and Injuring another. The state board of canvassers of Virginia give the Democrats an additional congressman. Hon. George Emerson has been appointed judge of the supreme court of New. foundland. General Grosvenor says the Dingley bill should not be passed, as It might hinder proper tariff legislation. The president has appointed Judge Charles C. Mott chief justice of the court of claims at Washington. Wednesday. The official count of New Jersey's vote gives McKinley 87,602 plurality. A bronze tablet is to be erected in Baltimore where the Methodist Episcopal church was born. McKinley will get an elector from Vir ginia by reason of misnomer on the Demo eratic ticket. Kentucky silver Democrats have resolved not to allow gold Democrats to vote at silver primaries. Consul General Lee says he does not be lleve the Competitor prisoners have been secretly tried in Cuba. The dead body of Minnie Hazeibeck of New York, who disappeared Saturday, was found in a park atTrenton, N. J. The window glass troubles have been set tled, the workmen agreeing to 10 per cent less than that asked by the union. 1 Thursday. The Yale-Princeton football game at New York netted $28,364.27. t Two feet of snow fell in North Dakota and cattle are suffering. r Frank Doherty, murderer, in jail a Kingston, N. Y., suicided. The Metropolitan club scandal has bro r ken out anew in Washington. Without extensive alterations it 1 doubtful whether the battleship Texas car be again ordered to sea. Indications that Rev. James Miller found dead in' an alley in Bloemington Ills., committed suicide. Judge Gibbons in Chicago appointed the American Trust and Savings bank receive for Columbian liberty bell. Annual report of the board of visitor to the West Point Military academy rec ommends raising the requirements for ad mission. e Barn of W. W. Morton, a neighbor O President P. J. Berckmans of the Ameri can Pomological society, burned at mid night in Georgia. A letter has been received in Philadel phia from General Maceo in Cuba saying that there is no danger of the Spaniard ever winning the fight. Friday. Texas proved to be Bryan's banne 5 state. King Alexander of Servial called on th pope. The American colony in Rome floated th stars and stripes. Patrick Stanton was killed by the ao cidental throwing of a stone at Flint Mich. In the New Orleans road race Rober Kennedy collided with another wheelma and-was killed. The president and Mrs. Cleveland a tended Thanksgiving services at the Firs 20 Presbyterian church, at Washington The proposed celebration of the admis sion of Wisconsin into the Union at WI waukee in 1898 has been abandoned. 2 Suicide of Minnie Hausselbach at Trer ton, N. J., has been SO thoroughly estal d lished that the murder theory has bee abandoned. A rumor of revolution comes from Chile The granting of "dead-head" tickets ha 7 been denied the general passenger an freight agents. Saturday. 't Wheat advanced 6 cents during the weel Frank Erne of Buffalo whipped Georg Dixon in New York. Oil has been struck 15 feet under the su Clereland noor face


Article from Highland Recorder, December 4, 1896

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THE NEWS, The fight between the bituminous coal miners and operators of Terra Haute, Ind., has assumed a serious aspect. The latest move of the operators is a notice ordering all the houses now owned by the companies to be vacated. The coming Illinois Legislature will be nsked to pass laws prohibiting the sale of cigarettes, placing saloons in counties, towns and wards under local option and compeling observance of the Sabbath. Henry White, charged with the murder of Politeman Jackson, in Columbus, Ga. was found guilty and sentenced to death January 15, 1897. Cester Witherspoon, president of the Midway Turnp ke, in Woodlord county. Ky, has redeived anonymous notes threatening to burn his home if he continues to collect toll. Meantime tollgates have been raided and recent high chopped The damage down every caused night by for the five nights water on the Great Northern Rallway has now been repaired and all trains are running on time. Through business to and from the Pacific Coast, passenger, freight and express. is being handled promptly. By the overturning of a gasoline lamp an explosion occurred at the residence of F. A. Walker, Minneapolis. Mrs Walker, her daughter Mabel, aged 13, and the domesti Mary Overland, were probably fatally burned Ernest Warford, aged 54 years, of Easton, Pa,8 storekeeper for the Pennsylvania Railroad Company at Philippburg, N. J., fell from a passenger train which was crossing the Lehigh Valley Railroad bridge and was dashed to death on the rocks 60 feet below. The Comptroller of the Currency has recelved information of the failure of the Dakota National Bank, of Sigux Falls, 8. D The bank has a capital of 830,000 and at the time of the last report it had a surplus of $50,000 and liabilities a mounting to $230,000 exclusive of stock. Bank Examiner Zimmer man has been placed in charge. Milo B. Stevens, one of the best-known pension attorneys in the United States, died at his home, 578 Cedar avenue, Cleveland, Q., aged 69 years. Mr. Stevens, ever since the close of the war, was known far and wide as a pension attorney. e About 100 men employed at the factory of the Virginia and North Carollan Wheeling d Company, Rishmond, Va, went out on a t strike on account of 10 per cent. reduction in e wages. Hon. George Emergon, solfeitor-general , 0 and member of the ministry, has been ape pointed to sueceed Sir James Winter as judge e of the St. John, N. F., Supreme Court, the t latter having recently resigned. The ap. e pointment meets with general approval. Mr. S Emerson's qualifications for the position are 9 admitted. 3. n President-Elect McKialey will be invited 1 attend the convention of the International S Epworth League in Toronto next July and o reply to the address of welcome, to be deliv ered by Lord Aberdeen. o The Taylor Brothers, two notorious out 3, t laws, who for 8 long time was a terror to th h people of Golbert and Franklin counties Twere captured in Colbert county, Ala., or e Sunday. se G. W. Nelson, a prominent member of the it First Baptist Church, sang in the choir at S the union services of all the churches in 10 Chattaneoga, Tenn., at the First Baptist Church. As Dr. R. B. Garrett pronounced m the last words of the benediction Mr. Nelson fell heavily forward, dead. Apoplexy was the cause. a n The Gilson Asphaltum Mine, at For Duebesne, Utab, is still bursing flercely " Work is now being directed to the air shaft st in hopes that by cutting off the air the Are d ean be brought under control. The entire t) underground workings of the mine have ebeen destroyed. It is hardly probable that g work can be resumed this winter. is . The secretary of State has completed the g. count of the vote for presidential electors in us Missouri. It shows a total vote cast of 674, en 018, divided as follows: Democratic, 368,652 r. republican, 304,930; prohibitionist, 2,169 on socialist-labor, 610; Palmer-Buckner, 2,355 of national prohibitionist, 292. Bryan's elec tors bad 58,712 vote3 more than the McKin by "s ley electors and 53,286 more than all other combined. ny Terrible storms and floods have occurre in Athens, and the low-lying quarters ha re de been in undated, several persons bein drowned to n)


Article from Hot Springs Weekly Star, December 4, 1896

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Sioux Falls Bank Fails. The Dakota National Bank, one of the oldest in Sioux Falls,did not open Monday morning. The bank, it is said, will not go into a receiver's hands, but will be in charge of the bank examiner. It is said depositors will be paid in full within three weeks and the bank will reopen for business. The bank has a capital of $50,000, surplus of $50,000 and deposits at last statement, October 6, of $175,598. The bank's embarrassment resulted from demands by eastern correspondents and is believed to be only temporary. Sixty business men held a meeting and a run on other banks, it is believed, will be avoided.


Article from Twice-A-Week Plain Dealer, December 8, 1896

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A Carload of Confidence. Mabley & Co., Detroit, fail for $362866 Monday. On the same day "Confidence" caused the Dakota National Bank at Sioux Falls to close with $200,000 liabilities; Judge Hilton's St n in New York assigned the A, T. Stewart business, liabilities $1,891,576; The Union Manufacturing Co., of Freeport, III. got to great a dose of confidence and quit; The Streeter, Ill., street railway company could not pay the freight on their carload of confidence and stopped; a wholesale grocery firm at Lexington went to the wall; and the First National Bank of LeMars took the same route. This was Monday this week. And confidence is restored.


Article from The Madison Daily Leader, April 22, 1897

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THE CITY. LOCAL BREVITIES. F. L. Soper drives a new surrey and Harry Chales a new "trap." The Palace Drug Store soda fountain was in excellent taste to-day. The American "Carmencita" will be here next week with Carlton & Lord's Jolly Comedians. Hon. H. H. Blair of Elk Point, chairman of the new board of regents, spent the night in the city. Weather report: Generally fair tonight and Friday. Cooler to-night. Cooler west portion Friday. Ed. M. Lord, advance agent for Carlton and Lord's Comedy company, is in the city preparing to do business here all next week. John Wadden has beautified his residence grounds by planting a large number of evergreens, mountain ash and other ornamental trees. Mrs. Lance, sister of O. H. Bangs, returned from Iowa, Mrs. Wm. Howlett from Sioux City and Rev. W. J. Cleveland from Sioux Falls. Earl Bell, president: Notice is hereby given that all spectators will hereafter be excluded from the Juvenile band room during practice hours. Wm. Rae went to Sioux Falls to consult the architect in regard to plans of the new Masouic hall to be built as the third story of the new Smith-Fitzgerald block. The dance which was to have been given in the opera house last evening owing to the rehearsal for the play of Damon & Pythias, was postponed until to-morrow evening. Governor Andy Lee's proclamation for Arbor Day, May 3, is at hand and is the best of thekind we have yet read in this or anyother state. We will publish it to-morrow in full. Messrs Blair snd Haire of the state board of regents are in the city to look over the affairs of the State Normal school. Dr. Spafford of Flandrau another member is expected here also. Justice Holdridge run two victims through his legal mill this morningThos. Smith for vagrancy and Frank Wilson for drunkenness. Each was fined $10 and costs and in default of payment were committed to jail and hard labor on the streets for eight days. Argus-Leader 21: The wisdom of refusing to allow party politics to mix up in city affairs is now evident. The city has elected an excellent body of aldermen and school directors and has done it without the excitement and bitterness of feeling always engendered during a party fight. Sioux Falls Press, 21: A short time ago A. B. Kittredge left this city, ostensibly for Chicago, but as a matter of fact he was bound for Washington and it is reliably stated that his mission there is to have Receiver Zimmermann of the Dakota National bank ousted from his position and ex-President George H Brace appointed in his stead. Sioux


Article from Custer Weekly Chronicle, October 29, 1898

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Gamble and Phillips. An enthusiastic republican meeting was held at the court house in this city last Monday night, which was address ed by Kirk G. Phillips, candidate for governor, and Robert J. Gamble, candidate for congressman. Although the evening was unpropitious on account of a light snow that had fallen during the day, the court room was crowded. Mr. I. M. Donaldson, state committeeman, presided over the meeting. Mr. Phillips was the first speaker, and confined himself largely to state issues, going over state affairs. and especially the railroad question, showing the position of the republican party in that regard, and the pledge in the platform looking to the enforcement of that legislation in case of republican success at the coming election. He discussed the state finances and the conduct of the treasurer's office during his term. Mr. Phillips took up the charges made against him by populistic speakers and newspapers in regard to receiving interest on state money. These charges the speaker denied, and stated that he had neither received or taken any interest on the funds of the state during his incum bency of the office of treasurer. He paid his respects to U.S G. Cherry and others of Sioux Falls who sought by fictitious deposition to prove that he had received interest on state funds he had on deposit in the Dakota National bank of that city, which charges he also denied. Mr. Phillips stated that at the time of the suspension of that bank he had on deposit in the name of the state about $23,000, and in order to reimburse the state he mortgaged all his personal and real property, and from present in dications he expects to suffer a loss of from $10,000 to $12,000. His speech was dignified and strong and was well re ceived. Mr. Gamble's speech was largely devoted to the discussion of national issues. He spoke at some length upon the subject of protection and the prosperity that had been restored in consequence of the election of Mr. McKinley. The speaker referred briefly to the silver question, but regarded that issue as practically closed as the result of the election of 1896. He paid his respects to (Senator Pettigrew upon some charges made by the latter. and by affidavits proved the senator's connection in a contract for attorney's fees with certain Indian affairs. Mr. Gamble is a fine orator, and his speech is conceded to have been one of the best ever made in Custer. Both gentlemen made many friends among the voters during their short stay in this city.


Article from Semi-Weekly Register, November 1, 1898

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ment as receiver of the Dakota National bank at the time of its failure, notwithstanding that he was then state treasurer and that his home is Deadwood. It will be remembered also that shortly after he was nominated for governor he came to Sioux Falls. The charges of the anti: machine republican delegates to the Mitchell convention were becoming public property. It was common talk everywhere and especially in Sioux Falls, that the Dakota National bank had paid Phillips interest on state deposits. Mr. Phillips came to Sioux Falls and had a long consultation with Mr. Zimmerman, receiver of the bank. If they talked of what nearly everybody else was talking they discussed the question of the evidence of Kirk Phillips having received interest on state money. But the Press leaves the record as it is. The books of the Dakota National Bank show that Kirk Phillips received interest on state deposits. Exofficials of the bank have repeatedly said that this was true. There is on file in the court the sworn testimony of one ex-official to that effect. The papers of the bank or a portion of them had been thrown about for many months as waste paper. Suddenly they were removed and hid. Now the bank receiver says they are so valuable that nobody can see them without permission from Washington. The bank books are closed to the public.-Sioux Falls Press.


Article from The Madison Daily Leader, November 2, 1898

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Nothing further up to Tuesday of this week had developed in the Phillips in-vestigation in connection with the Dakota National bank. Receiver Zimmermann who is also a national bank examiner still remains and has given to the Argus-Leader a ridiculously falsified account of his refusal to allow an investi-gation of the books of the bank after ordered to do so by Comptroller Dawes. But the impression is so strong in lead-ing political circles at Sioux Falls that he will be speedily removed from both his receivership and the position of bank examiner, that the republican state central committee has already endorsed E. B. Korns of Doland for the latter position. But even if for political reasons nothing further should be done at the present time with Zimmermann the whole affair was such an open bluff to conceal a crime that there is not a shadow of doubt of Kirk Phillips' guilt left.


Article from Semi-Weekly Register, November 4, 1898

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country banks where the average balance was in excess of $1.000. Q. Were the STATE TREASURER or county treasurer either directors, stockholders or interested in the bank? A. No sir. Q. If you know, state whether the other banks in Sioux Falls also paid interest on state and county deposits at the same rate? A. I can't answer that question, because I don't know whether they did or not. Q. State whether the interest paid on the special accounts was paid because they were in any way interested in the banks as stockholders, directors or officers? A. No sir, they were not. Q. Could you state what rate of in-t was paid on these special ac-s, to which you have referred? A. I remember exactly, but I think 2 per cent. Q. State please how that was usually computed, on average dally balances on average month'y ba'ances? A. ON THE AVERAGE DAILY BALANCES FOR THE MONTH. Q. Was that in excess of some certain amount, or generally on whatever balance that happened to be in the bank? A. On the average balance. The STATE TREASURER and courtytreasurer carried large balances. AND FOR THEIR ACCOUNTS THEY WERE ALLOWED INTEREST. THE INTEREST WAS ALLOWED TO GET THE DEPOSIT BECAUSE IT WAS LARGE Q. During what years, if you can recall, did you pay the interest to the state and county treasurers on their balances? A. IT WAS DURING THE LATTER PAPT OF THE TIME THAT I WAS THERE, but just how long I don't remember. Q. It was customary, was it? A. IT WAS ALWAYS DONE. ### CROSS EXAMINATION. By Mr. Barnes. Q. Mr. Gilkes, do you consider that the Dakota National bank of Sioux Falls was run as economically for the benefit of the stockho'ders as should have been to their interests, within twe years preceding its failure? Do you think it was run in the interests of the stockholders? A. I think it was run as well for the benefit of the stockho'ders as the conditions out there wou'd allow Q. What do you mean by the conditions would allow in that community? A. Well, that the bank necessarily hac to keep up a certain force to do what work was necessary to attend to its running business. The running business just then was not profitable. Q. Do you not think that the salaries were rather large for the business the bank was doing, taking it from an economic standpoint at this time? A. No I don't think so. Q. You think the business justified the expense in the way of salaries? A. Yes sir. Q. Was it the custom of the banks in Sioux Falls to pay interest on average daily balances? A. No sir. A. Did the Dakota National bank do so? A. No sir. Q. It wasn't the general custom of this bank then, but it did so in isolated cases? A. "Yes sir. Q. In these cases in which it did pay interest on balances, did not it pay a larger interest to the state treasurer on his balance than to other depositors who received interest on their balances! A. No sir, it did not. ### RE-DIRECT EXAMINATION. By Mr. Shuey. Q. In what capacity are you now employed, in Chicago, Mr. Gilkes? A. Discount clerk for W. T. Rickords & Company. Q. How many years' experience have you had in the banking business all-told? A. Ten years. Q. Do you know of your own knowledge that no greater rate of interest was paid on the special accounts you have referred to on deposit than was provided for by the agreement, to which you have referred, among the Sioux Falls banks? A. No sir, there was not. Q. Was this Mr. Gale, of whom you spoke, a director of the bank? A. Yes sir. Q. Was it his custom to take out cer-