20533. Henderson State Bank (Wessington, SD)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 29, 1912
Location
Wessington, South Dakota (44.454, -98.697)

Metadata

Model
gpt-5-mini
Short Digest
56c20312

Response Measures

None

Description

Multiple articles report the Henderson State Bank at Wessington was suspended by the State Bank Examiner on January 29 (year reported relative to articles is 1912). Suspension followed discovery of irregular practices and false statements by the cashier; no article describes a depositor run. Reports indicate partial dividends (50%) paid and further payments expected, and articles discuss possible placing in receiver's hands — consistent with a suspension that led to closure/liquidation rather than a temporary reopening.

Events (1)
1. January 29, 1912 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspended by state examiner because of irregular practices and false statements about the bank's condition; cashier (B. R./B. J. Henderson) arrested on charges including false statements and irregular practices.
Newspaper Excerpt
On January 29 last the Henderson State bank was suspended by order of the state banking department on the ground of irregular practices and making false statements concerning the condition of the bank.
Source
newspapers

Newspaper Articles (10)
1. March 29, 1912 The Norfolk Weekly News-Journal Norfolk, NE
Article from The Norfolk Weekly News-Journal, March 29, 1912

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N.P. Heinz, of Aurora county, was found insane by the insanity commission and has been taken to the state insane hospital at Yankton. Mike Stadler, of Kimball county, has sold his entire herd of pure bred cattle. said to be the finest in the state, to R. C. Drake, of Plankinton. Articles of incorporation have been filed with the secretary of state for the Niobrara and Sioux City Railway Co., with a capital of $1,000,000. Farmers in the vicinity of Oelrich will use dynamite to loosen the soil on the theory that better crops can be grown if this method is followed. The Standard Oil company has selected McIntosh, in Corson county, its distributing point for that section of the state. A big building will be erected at once. M. F. Meyers, editor of the American Co-Operative Journal, of Chicago, addressed a big farmers' meeting at Hoven on the question of co-operative elevators and like enterprises The Minneapolis and St. Louis railway has granted a free freight rate on seed grain to the commissioners of McPherson county and bonds have been issued by the county to secure enough to supply the farmers. The drouth of last season in the western part of the state is now declared to be a blessing in disguise. It is said the stimulating effect which it had on irrigation and dry farming methods will more than make up for the losses occasioned. A newspaper printed in the language of the Sioux is being published by the Indians on the Cheyenne River reservation. A bananna tree at the state college at Brookings is about to bear its first crop of fruit since it was brought from tropical climes. Over 400 Knights of Columbus attended the big meeting of that order under the auspices of the Mount Marty Council at Yankton. The schools at Yankton have reopened foilowing a threatened epidemic of scarlet fever which caused the board to close them for a short period. The grand lodge of the Degree of Honor of South Dakota has incorporated under the laws of the state. It has been in the state for about 13 years. Harry Chambers and Clarence Middleton, two well known young men of Watertown, have been arrested charged with assaulting E. D. Wilson, of Noblesville. Ind. Miss Irene Tastad and Richard Rasmussen, of Woonsocket, sweethearts under parental displeasure, have disappeared and it is believed that they have eloped. All efforts to locate them have failed. A big good roads movement has been launched in Perkins county. It will begin its efforts by securing the construction of a good road from the county seat 40 miles to the nearest railroad point. Financial difficulties besetting the Betts Construction Co., of Huron, has caused the state association of Elks to take over the fine new building at Rapid City which that company was building for the order. The National Life Insurance Co., of Montpelier, Vt., the Bankers' Accident of Des Moines, the Jefferson Fire of Philadelphia, and the Ply. mouth Casualty of Minneapolis have withdrawn from the state. Reports from Berlin, Germany, are to the effect that Miss Cordelia Lee, a South Dakota girl, is making a big success in musical circles there. The same regulations regarding registration are to apply in South Dakota in the future for all municipal and local elections as for the state elections. The Henderson State bank, at Wessington, closed for some weeks because of inability to realize on overdue loans, may be placed in the hands of a receiver. Residents between Philip and Faith are petitioning for a mail line connecting those towns. At present mail has to travel 500 miles to get a distance of 60 miles. Indications are that the commission plan of government will be voted in at Watertown Saturday by a big majority. The campaign has been a vigorous one. Mystery surrounds the death of Mr. and Mrs. Chris Jensen, of Hurley, who were found dead in their home by neighbors. It is thought that they may have been overcome by coal gas. The success of the state builders meeting in session at Aberdeen exceeds all expectations and many present pronounce it one of the most significant gatherings ever held in the state. Weather and crop prophets throughout the state are predicting the great-

2. December 30, 1912 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, December 30, 1912

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BANK CASHIER Of Wessington Arrested for Irregularities in Bank Failure Mitchell, Dec. 30. When the Hen. derson State bank, at Wessington, was suspended by State Bank Examiner Wingfield last January 29, there was no supposition that the cashier, B. R. Henderson. would be taken into custody, but that is the final result of the situation. The bank examiner began proceedings against Henderson at Huron, December 21. when he filed information containing four counts, charging Henderson with irregular practices and making a false statement of the condition of the bank. The preliminary examination before Justice Van Dalsen was made as private as possible, and the defendant pleaded not guilty to two charges, viz: Alleging publication of a false statement and making a false statement to the state bank examiner. Henderson was bound over to the Janusry term of circuit court in the sum of $2,500, which he gave. Early in the year the Henderson bank was suspended by the state bank examiner after he was satisfied that the bank had been doing things contrary to the state banking law, and since that time efforts have been made to pay up the depositors as near as possible. Up to the present time they have received 50 per cent, and it is stated on good authority that another dividend will be made within 30 days. It is further believed that eventually the creditors will be paid in full and that the heaviest loss will fall on the stockholders, who are composed principally of the Henderson family. At the time of the suspension, the liabilities of the bank were placed at about $50,000, with assets of about $70,000, which, however, will develop but little strength. It is stated that at the trial information will be brought out bordering on the sensational.

3. January 2, 1913 The Miller Press Miller, SD
Article from The Miller Press, January 2, 1913

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# Bank Cashier In Trouble Huron, S. D., Dec. 30.-When the Henderson State bank at Wessington, S. D., was suspended by State Bank Examiner Wingfield, January 29, there was no supposition that the cashier, B. R. Henderson, would be taken into custody, but that is the final result of the situation. The bank examiner began proceedings against Henderson at Huron, December 21, when he filed information on four counts, with the state's attorney, charging Henderson with irregular practices and making a false statement of the condition of the bank. Henderson was bound over to the January term of circuit court in the sum of $2,500 which he gave.

4. January 2, 1913 The Mitchell Capital Mitchell, SD
Article from The Mitchell Capital, January 2, 1913

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Examiner WingSends Biennial Report to Governor. ECOMME NDATION commends Changes in Laws to Protect Depositors and Stockholders. his tenth biennial report to vernor Vessey State Bank ExamWingfield of this city covers an eresting period of the banking iness in this state, as refers to banks, and the report indithat at the close of business the period of to years, June 30, the banks are in a generally sperous condition. The report the condition of five hundred banks, fourteen private banks, twelve trust companies doing iness in the state on the date of last call, June 14. During the periods covered by the forty state banks, one private and four trust companies were anized: six banks left the jurisby becoming national banks; private banks incorporated as banks, and eight banks fortheir charters by failing to for business within the time ecified by law, making a total net of twenty-nine banks for the of two years. Six banks suspended payments in past two years, viz: Chelsea State First State bank, Onida, Northstern State bank, Newell, Meade bank, Sturgis, Farmers State Mobridge, Henderson State Wessington Why Banks Failed. The examiner traces the failure these banks to various causes, from the failure to maintain required legal cash reserve, large of delinquent loans, negliof officers in conduct of afcarrying exceedingly heavy without good security. Reting from two of the failures at and South Shore two cashcommitted suicide, and several have been given terms in the penitentiary for their violaof the state law. The Newell Bank Failure. Concerning the failure of the Norwestern State Bank at Newell, S. and which occasioned much comduring the recent campaign in state, the bank examiner makes following statement: The Northwestern State Bank of well was suspended on account of generally unsatisfactory condiof its affairs, due to negligence the part of the officers and directand fraudulent transactions on part of the cashier. An examinaof its affairs developed a greatly paired cash reserve, misappropriembezzlement, forgery and Isification by the cashier, and other transactions wherein the officers were beneficiaries. As result of this general misconduct affairs, improper assets aggregatmany thousands of dollars were mitted. 'Shortly before the suspension of bank the capital stock was transto an entirely new managewith the exception of the cashwho was temporarily retained on count of his familiarity with the siness. No criticism is due the peowho took over the bank from the stockholders, The causes resulted in the suspension of bank were traceable to the fordirectors and officers in charge. this point it may be well to note wisdom of the provisions of Sec41 of Article 2, Chapter 222, Laws of 1909 as amended the Session of 1911, State of South wherein it provides in part follows: "The stockholders of evbank shall be individually liable,

5. January 2, 1913 The Mitchell Capital Mitchell, SD
Article from The Mitchell Capital, January 2, 1913

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# The Cashier Is Placed Under Arrest On Four Charges. # FALSE STATEMENTS Charee Is Making False Statement to Public and to the Examiner. Huron, S. D. When the Henderson State bank at Wessington, S. D., was suspended by State Bank Examiner Wingfield, January 29, there was no supposition that the cashier, B. R. Henderson, would be taken into custody, but that is the final result of the situation. The bank examiner began proceedings against Henderson at Huron, Dec. 21, when he filed information on four counts, with the state's attorney and A. R. Gardner, assistant attorney, charging Henderson with irregular practices and making a false statement of the condition of the bank. The prelimnary examination before Justice Van Dalsen was made nearly as private as possible, and the defendant pleaded not guilty to two charges, viz: Alleging publication of a false statement and making a felse statement to the state bank examiner. Henderson was bound over to the January term of circuit court in the sum of $2,500, which he gave. Early in the year the Henderson bank was suspended by the state bank examiner after he was satisfied that the bank had been doing things in opposition to the state banking law, and since that time efforts have been made to pay out the depositors elas near as possible. Up to the present time they have received 50 per cent, and it is stated on good authority that another dividend will be made within thirty days. It is further believed that eventually the creditors will be paid in full, and that the heaviest loss will be on the stockholders, who are composed principally of the Henderson family. At the time of the suspension the liabilities of the bank were placed at about $55.000, and the assets as thout $70,000, which, however, will develop but little strength. It is stated that at the trial some lively information will be brought ont, bordering on the sensational.

6. January 2, 1913 Pierre Weekly Free Press Pierre, SD
Article from Pierre Weekly Free Press, January 2, 1913

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HENDERSON ARRESTED FOR IRREGULARITIES IN WESSINGTON BANK Pleads Not Guilty and Placed Under Bonds to Appear In January. Mitchell, S. D., Dec. 30.-When the Henderson State bank, at Wessington, 8. D., was suspended by State Bank Examiner Wingfield last January 29, there was no supposition that the cashier, B. R. Henderson, would be taken into custody, but that is the r.nal result of the situation. The bank examiner began proceedings against Henderson at Huron, December 21, when he filed information containing four counts, charging Henderson with irregular practices and making a false statement of the condition of the bank. The preliminary examination before Justice Van Dalsen was made as private as possible, and the defendant pleaded not guilty to two charges, viz: Alleging publication of a false statement and making a false statement to the state bank examiner. Henderson was bound over to the January term of circuit court in the sum of $2,500, which he gave. Early in the year the Henderson bank was suspended by the state bank examiner after he was satisfied that the bank had been doing things contrary to the state banking law, and since that time efforts have been made to pay up the depositors as near as possible. Up to the present time they have received 50 per cent, and it is stated on good authority that another dividend will be made within 30 days It is further believed that eventually the creditors will be paid in full, and that the heaviest loss will fall on the stockholders, who are composed principally of the Henderson family At the time of the suspension, the liabilities of the bank were placed at about $50,000, with assets of about $70,000, which, however, will develop but little strength. It is stated that at the trial information will be brought out bordering on the sensational. OLD MINER STRIKES RICH PLACER FIND Rapid City. S. D., Dec. 30.-Fred J. Sierth, of Hayward, who came into the Hills 20 years ago, and after 10 years of prospecting went broke, has discovered a rich placer proposition on his ranch. After wandering about the Hills, Sierth finally settled down to raising wheat and cattle. He was successful and has grown wealthy, being one of the substantial men of his community Recently he was leading a pair of horses to water and one of them stumbled, turning up quite a bit of earth in an effort to regain its equilibrium. A day or so later Sierth had occasion to walk over the spot where the horse had stumbled. He saw something giltter, and upon examination found it to be a small nugget worth about $3. Scraping away the earth, Sierth recovered enough small nuggets to amount to $10. It was the richest strike he had over made, but the lure of the gold has not turned Sierth's brain. It seems, on the other hand, to have brightened his wits. He will combine farming and mining on a new and original plan. After installing a hydraulic drill the loam will be swept away until gravel 18 struck. The gravel will be panned for the gold there is in it and returned to the pits. Then the loam will be placed in its original position and Sierth will continue farming as usual. He figures that by this thoroughly breaking the ground the necessity of plowing will be obviated for several years. George Bain, of Hill City, spent Christmas in town and is highly elated over a strike of ore made at the Dolcode mine. When reduced, a meal sack of the ore netted $10 in gold, which ton. would make it run about 1250 to the Mr. Bain is preparing to investigate the size of the vain and develop it to its capacity. He is an old timer in the Hills and has never before struck # proposition which looks as productive of results as his strike at the Dolcode. STATE BAR ASSOCIATION AT PIERRE IN JANUARY Pierre, S. D., Dec. 30.-The 14th annual meeting of the South Dakota Bar association will be held in Pierre on Wednesday and Thursday, the 15th and 16th of January, 1913, and the president's address will be delivered by James, Brown, of Chamberlain. Papers will be read by Jesse W. Boyce, of Sloux Falls: A. K. Gardner, of Huron, and Chambers Kellar, of Lead. Reports will be discussed of the various standing committees. On Wednesday evening, the 15th, the association will give a dinner in honor of Judges Dighton Corson and Dick Haney and the attendance will be limIted to members of the association. During Wednesday afternoon, the 15th, a marble bust of Senator Alfred Beard Kittredge, a member of the association at the time of his death, will be unveiled in the capitol with appropriate ceremonies and addresses. Invitations to this occasion are being issued by the Kittredge memorial committee. DESCENDENTS PRESENT AT CURRIER GOLDEN WEDDING Mitchell, B. D., Dec. 30.-Mr. and Mrs. D. C. Currier had a large group of old friends and neighbors and the members of their family at their home near Canistota for the celebration of their golden wedding. Their eight children, 37 grandchildren, and one greatgrand child were present. A continuous lunch was served during the afternoon and evening and the occasion

7. January 10, 1913 The Mellette County Pioneer White River, Wood, SD
Article from The Mellette County Pioneer, January 10, 1913

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Accused of Irregularities. Mitchell.-A new feature of the Henderson State bank suspension came to light when the state bank examiner caused the arrest of B. J. Henderson. cashier of the Henderson State bank, located at Wessington, S. D. The state bank examiner filed information December 21 with the state's attorney of Beadle county, and with the assistant, A. K. Gardner. Henderson was taken to Huron. where he was given a private preliminary examination and was bound over to the January term of circuit court. which convenes in January, in the sum of $2,500. which was furnished. The state bank examiner filed information on four charges, to two of which Henderson pleaded not guilty. viz., alleging publication of false statements in regard to the financial condition of the bank and making a false statement to the bank examiner. On January 29 last the Henderson State bank was suspended by órder of the state banking department on the ground of irregular practices and making false statements concerning the condition of the bank. Since then the bank has been able to pay its creditors 50 per cent. and it is reported on good authority that a further dividend will be paid within 30 days. In all probability the bank will pay out in full to the creditors. but a considerable loss will fall on the stockholders, who are principally members of the Henderson family. The liabilities of the bank at the time of the suspension were about $50,000, and the assets amounted to nearly $70,000. which. however, are said not to be of the best.

8. January 10, 1913 Dewey County Advocate Timber Lake, SD
Article from Dewey County Advocate, January 10, 1913

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Accused of Irregularities. Mitchell.-A new feature of the Henderson State bank suspension came to light when the state bank examiner caused the arrest of B. J. Henderson, cashier of the Henderson State bank, located at Wessington, S. D. The state bank examiner filed information December 21 with the state's attorney of Beadle county, and with the assistant. A. K. Gardner. Henderson was taken to Huron, where he was given a private preliminary examination and was bound over to the January term of circuit court, which convenes in January, in the sum of $2,500, which was furnished. The state bank examiner filed information on four charges, to two of which Henderson pleaded not guilty, viz., alleging publication of false statements in regard to the financial condition of the bank and making a false statement to the bank examiner. On January 29 last the Henderson State bank was suspended by order of the state banking department on the ground of irregular practices and making false statements concerning the condition of the bank. Since then the bank has been able to pay its creditors 50 per cent, and it is reported on good authority that a further dividend will be paid within 30 days. In all probability the bank will pay out in full to the creditors, but a considerable loss will fall on the stockholders, who are principally members of the Henderson family. The liabilities of the bank at the time of the suspension were about $50,000, and the assets amounted to nearly $70,000, which, however, are said not to be of the best.

9. January 10, 1913 The Mellette County Pioneer White River, Wood, SD
Article from The Mellette County Pioneer, January 10, 1913

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Accused of Irregularities. Mitchell.-A new feature of the Henderson State bank suspension came to light when the state bank examiner caused the arrest of B. J. Henderson. cashier of the Henderson State bank. located at Wessington, S. D. The state bank examiner filed information December 21 with the state's attorney of Beadle county. and with the assistant. A. K. Gardner. Henderson was taken to Huron. where he was given a private preliminary examination and was bound over to the January term of circuit court. which convenes in January. in the sum of $2,500. which was furnished. The state bank examiner filed information on four charges. to two of which Henderson pleaded not guilty. viz., alleging publication of false statements in regard to the financial condition of the bank and making a false statement to the bank examiner. On January 29 last the Henderson State bank was suspended by órder of the state banking department on the ground of irregular practices and making false statements concerning the condition of the bank. Since then the bank has been able to pay its creditors 50 per cent. and it is reported on good authority that a further dividend will be paid within 30 days. In all probability the bank will pay out in full to the creditors, but a considerable loss will fall on the stockholders. who are principally members of the Henderson family. The liabilities of the bank at the time of the suspension were about $50,000, and the assets amounted to nearly $70,000. which. however, are said not to be of the best.

10. January 16, 1913 The Brookings Register Brookings, SD
Article from The Brookings Register, January 16, 1913

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BANKS IN GOOD SHAPE In his tenth biennial report to the governor, State Bank Examiner Wingfield of Mitchell, says the banks are in a generally prosperous condition. The report discusses the condition of 500 state banks, fourteen private banks and twelve trust companies. During the period covered by the report, forty state banks, one private bank and four trust companies were organized; six banks left the jurisdiction by becoming national banks, twenty-one liquidated voluntarily; three private banks incorporated as state banks, and eight banks forfeited their charters by failing to open for business within the time specified by law, making a total not gain of twenty-nine banks for the two years. Six banks suspended payments in the two years, namely, Chelsea State Bank, First State Bank, Onida; Northwestern State Bank, Newell; Meade County Bank, Sturgis; Farmers' State Bank, Mobridge; Henderson State Bank, Wessington. The examiner traces the failure of these banks to various causes, ranging from failure to maintain the required legal cash reserve, a large amount of delinquent loans, negligence of officers, and the carrying of heavy loans without good security. Because of the failures at Sturgis and South Shore, two cashiens committed suicide; several others have been given terms in the state penitentiary. In the case of impairment of capital, the examiner finds that stockholders in the majority will refuse to make an assessment on the stock, with the idea of forcing the minority stockholders into voluntary liquidation or submit to suspension by the examiner. The law does not give the bank examiner authority to intercede for the minority stockholders (and force the majority to make concessions. He suggests that the examiner be joined with the board of directors, which would then give him authority to levy an assessment to make stronger the impaired capital. The examiner makes a strong contention against the "one man" bank, as he has found it to exist in several cases. He suggests that the directors be increased from three to five and require from the five a closer attendance on the meetings of the board of directors. As a further protection to the stockholders and depositors, the examiner recommends the double liability of stockholders. To avoid the loaning of funds to officers of the bank, the examiner makes the following statement: "Much pooling, wrongful diversion and entanglement of funds from loaning to associated interests could be prevented by amending section 29, article 2; by inserting the word corporation, and making it read as follows: 'No individua, firm or corporation transacting a banking business in this state shall loan to any single corporation, firm or individual, including such loan or loans made to the several members of such corporation, firm or co-partnership, more than 25 per cent of the paid up capital and surplus of such bank.' I invite close inquiry into the preceding suggestion and trust some action will be taken."