22883. First National Bank (Richland Center, WI)

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
7901
Charter Number
7901
Start Date
November 24, 1928
Location
Richland Center, Wisconsin (43.335, -90.387)

Metadata

Model
gpt-5-mini
Short Digest
f5782348

Response Measures

None

Description

The First National Bank of Richland Center suspended/closed in late 1928 (closed on Nov 24, 1928 per articles) and a receiver was appointed; subsequent litigation and comptroller actions cite frozen assets, excessive/improvident loans and heavy withdrawals. There is no clear contemporaneous description of a discrete rumor-driven run; problems appear tied to asset quality and frozen assets, so this is a suspension that resulted in permanent closure with receivership.

Events (4)

1. November 24, 1928 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed due to frozen assets and heavy withdrawals; later suits allege excessive and improvident loans and insufficient collateral by directors.
Newspaper Excerpt
The bank closed on Nov 24. 1928
Source
newspapers
2. January 7, 1929 Receivership
Newspaper Excerpt
order making the assessment and demanding the value the par stock was made January 7th. ... William Kane, the receiver in charge the First National Bank, states that receiving proofs claims should be begun this week, and law allows 90 days in which claims should be filed..
Source
newspapers
3. January 30, 1930 Other
Newspaper Excerpt
Injunctions to prevent sale mortgages and assigned five depositors the defunct First National Bank of Richland Center ... The complaints charge that the depositors given preferential treatment ... officers of bank knew its impending insolvency when they assigned them the mortgages on Richland Center real estate in lieu of deposits aggregating $9,000.
Source
newspapers
4. April 9, 1930 Other
Newspaper Excerpt
Civil action to demand an accounting of directors the First National bank Richland Center, which closed year ago because frozen assets, has been started in district court here by Olin and Butler. ... Directors are charged ... with having made excessive loans and with having made improvident loans persons who furnished insufficient collateral or unable to repay. One $29,000 specifically mentioned in the complaint
Source
newspapers

Newspaper Articles (13)

Article from The Platteville Journal and Grant County News, January 30, 1929

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Article Text

WM. IS RICHLAND CENTER BANK RECEIVER Stockholders in the First National Bank were mailed notices on Saturday that the Comptroller of the Curreney at had ordered an assessment of 100 cent on their stock, and forfeiture of its in favor creditors of the bank. order making the assessment and demanding the value the par stock was made January 7th. assessments are be by 14th, but receiver amount on that date, 25 cent per of the month the full amount paid, to take steps by law to collect the share of stock. William Kane, the receiver charge the First National Bank, states that receiving proofs claims should be begun this week, and law allows 90 days in which claims should be filed. Thus it will be the middle April before all claims filed. In meantime the bank receiving paper as falls due adjusting of the bank, statement can be given vidends paid until after all claims filed the middle of April. The depositors permission from the currency at the securities held in the funct National Bank. The permission directs that the securities must examined in the of the presence ceiver that no written record shall made of them, except as to amount. Since receiver Kane will busy man, have to listed when the bank Democrat.


Article from Wisconsin State Journal, January 30, 1930

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Article Text

Injunctions Asked by Bank Receiver Five Richland Center Depositors Given Preferential Treatment, Claim Injunctions to prevent sale mortgages and assigned five depositors defunct First tional Bank of Richland Center and recover the amounts those that already may have been sold are sought actions brought by Shell R. Smith, received for the federal court The complaints charge that the depositors given preferential treatment officers of bank knew its impending insolvency when they assigned them the mortgages on Richland Center real estate lieu of deposits approximately $9,000. If the transactions gages will be the of the bank for the benefit of named in the actions and the held by them are Alta Maybelle Florence and Mrs. W. F. Doudna. $3,000.


Article from The Boscobel Dial, February 5, 1930

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INJUNCTIONS ASKED BY BANK RECEIVER Injunctions to prevent sale of mortgages and notes assigned to five depositors the defunct First National Bank of Richland Center and judgments to recover the amounts those that already may have been sold, sought in actions brought by Shell Smith, receiver for the bank, in federal court at Madison. The complaints charge that the depositors were given treatment and that officers of the bank knew of its impending insolvency when they assigned to them the mortgages Richland Center real estate in lieu of deposits aggregating $9,000. If the transactions are proved to have been preferential, the mortgages will be restored to the general assets of the bank for the benefit of creditors. Depositors named in the actions and the amounts of the mortgages held by them are Alta King, $1,500 Maybelle Bush, $2,000; Florence Pease, $500; Drake, $2,000; and Mrs. W. Doudna, $3,000.


Article from The Capital Times, April 9, 1930

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Article Text

Suit Started In Richland Bank Failure Comptroller Orders Accounting for $45,000 by Directors Civil action to demand an accounting of directors the First National bank Richland Center, which closed year ago because frozen assets, has been started in district court here by Olin and Butler. Madison law firm. for the bank receiver and at the direction the U. S. bank comptroller. Clifford Mathys represents the local law firm the suit. bill complaint filed with Herbert court accounting for approximately $45,000. although it also requests determination of the exact amount. Directors are charged in the complaint under their and common law responsibility with having made excessive loans and with having made improvident loans persons who furnished insufficient collateral or unable repay One $29,000 specifically mentioned in the complaint No date has been set for hearing of the case.


Article from The Capital Times, April 9, 1930

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Article Text

Suit Started In Richland Bank Failure Comptroller Orders Accounting for $45,000 by Directors Civil action to demand an accounting directors of the First National bank Richland Center, which closed year because frozen assets, has been started in district court here Olin and Butler. Madison law firm. for the bank receiver and the direction of the bank comptroller. Clifford G. Mathys represents the local law firm the suit. bill complaint filed with Herbert court asks accounting for approximately although also requests determination of the exact amount Directors are charged in the complaint under their statutory and common law responsibility with having made excessive loans and with having made improvident loans persons furnished insufficient collateral or were unable to repay borrowings. One item $29,000 specifically mentioned the complaint No date has been set hearing of the case


Article from The Capital Times, April 21, 1930

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Article Text

Bank is Closed Following 'Run' & Merchants Bank Second in That City to Fail The Farmers Merchants bank. Richland with resources of $500,000 was closed the end of business Saturday, the 18th bank close since Jan. the state banking department announced today The bank Richland Center banking institution close, the First National bank suspended about year and half ago. understood that the closing the bank was due to frozen assets and heavy withdrawn of deposits on Saturwas stated the state banking department today that the institution over vote of directors." Craig president of the bank and vice president. The Pease The bank had deposits of and surplus $20,000 according the bank's report of March had undivided profits listed $20.and was capitalized at $50,000.


Article from The Capital Times, April 21, 1930

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Bank is Closed Following 'Run' Farmers & Merchants Bank Second in That City to Fail The Farmers Merchants bank. Richland Center with resources $500,000 closed at the end of business Saturday, the 18th bank to close since Jan. the state banking department announced today The bank the second large Richland Center banking institution to close, the First National bank having suspended about year and It understood that the closing the bank was due to frozen assets and heavy withdrawal of deposits on Saturwas stated at the state banking department today that the institution turned over by vote of directors Craig president the bank and Lunenschloss vice president. The cashier Pease The bank had deposits and surplus of $20,000. according the bank's report of March 27. It had undivided profits listed $20.and was capitalized at $50,000.


Article from The Platteville Journal and Grant County News, April 23, 1930

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Article Text

Items Of State News action by the United States bank comptroller for approximately from directors of the First National bank Richland Center has been filed federal court at Madison through and Butler, Madison law firm. The complaint, which requests determination of the exact amount available to the the directors with responsibility excessive and improvident loans without sufficient collateral. Henry H. Curran, president of Association Against the Prohibition Amendment, testified before the lobby committee today that organization had contributed the 1926 Senator campaign Blaine, republican, Wisconsin, member the and Detailing activities of the ciation during his fourth day the Curran also said that had been spent advocating repeal the state prohibition Wisconsin.


Article from Wisconsin State Journal, October 20, 1930

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Article Text

Argue Richland Bank Bond Officials Claim $1,500 Paper Should Add to Assets An attempt on the part of the ceiver the First National bank Richland Center to take $1.500 in bonds sold to Alta R. King Center was being threshed out in federal court today before Judge Claude Z. Luse. Shell Smith. receiver, is complainant in the The bank closed on Nov 24. 1928 Among the assets were $25,000 issued on the building Center. On 23, $1,500 these bonds sold to Alta R. King. had the more who had $300 from her aunt the deal. The bank claims that this transthus the $1,500 should be part of the assets.


Article from The Capital Times, October 20, 1930

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Bank Receiver Sues Depositor For $3,000 Sum Says Money Was Illegally Withdrawn from Richland Bank A hearing was being conducted before Judge Claude Z. Luse in U. S. district court here today in the suit of Shell R. King, receiver for the First National bank of Richland Center, against Alta Richards The hearing was continued this afternoon. Mr. King is seeking to recover about $3,000 withdrawn from the bank shortly before it was closed in 1928. Mr. King contends that Alta Richards and bank officials knew the financial condition of the bank at the time and should not have permitted the withdrawal. Bank officials claim that the withdrawal of the funds was part of Financial transaction and permissable. and toppled over, killing an 11-year-


Article from The Capital Times, October 20, 1930

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Bank Receiver Sues Depositor For $3,000 Sum Says Money Was Illegally Withdrawn from Richland Bank A hearing was being conducted before Judge Claude z. Luse in U. S district court here today in the suit of Shell R. King, receiver for the First National bank of Richland Center against Alta Richards. The hearing was continued this afternoon. Mr. King is seeking to recover about $3,000 withdrawn from the bank shortly before it was closed in 1928. Mr. King contends that Alta Richards and bank officials knew the financial condition of the bank at the time and should not have permitted the withdrawal. Bank officials claim that the withdrawal of the funds was part of Anancial transaction and permissable and toppled over, killing an 11-yearold boy.


Article from Grant County Herald, June 1, 1932

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Local Items John Livingston, 54, died at a Platteville hospital Monday of last week following a short illness. Funeral services were held at Livingston, Wednesday. Surviving are the widow and sons, Orin and Elmer. Little Jo Mae Greer, daughter of Mr. and Mrs. Harry Greer, is sporting a pale blue rain outfit bought by her uncle, Con Colleno, in Paris and brought home as present. Jo Mae, aged not quite three years, was out in the first sprinkle Wednesday afternoon, wearing her newest Parisian creation. The regular meeting of the Lancaster Woman's Club was held Wednesday, May 25th, at the Grantland Club Rooms. Mrs. H. S. Richards of Madison spoke on the subject 'International Relations. The next meeting of the club will be a picnic at noon, Thursday, June 9th, at Klondyke Spring. The local club is to be hostesses to all the federated clubs in Grant county. Each member is to bring a picnic lunch and those desiring transportation will be at Ryland Park by 11:30 a. m. Wednesday's rain storm was peculiar in that it struck with violence in a three-mile area north and south along the old military ridge but not a drop fell outside the favored zone. Motoring north to Fennimore that afternoon, the writer noticed, as soon as Roger Hollow was reached. that Grant river was in spate, whirling torrent of dirty-brown water. The river rose three feet in less than an hour, and fell as rapidly, leaving a ring of grime along its banks. The rain zone was reached about a mile and a half south of Fennimorepools of water in the road on the north and dust on the south. The line of demarcation was SO plain it was unusual. Considerable washing took place in nearby plowed fields. The Rev Felix Hoffman, fishing on Grant one even last week, saw a willow tree SO covered with June bugs that they swarmed by the millions. In places the bugs have eaten all the foliage from elm trees and at the golf course, a black worm has stripped the oak trees of leaves SO that leaf litter lies all over the ground and the trees are bare. Henry Cliff, caretaker, says the trees will leaf again. Fr. Hoffman opines that next year the grubs from the June bug eggs now being laid will make farming precarious. He ventures the conclusion that the balance of Nature has been upset by unwise cutting of trees everywhere, this being followed by an absence of birds. It is said that the bird population is only a tenth of what it was a few years ago, simply because the feathered tribe has places to nest and propagate-which they need in profusion. Nature will not be mocked and upPhone 16-2 setting the careful balance set up to check inordinate growth of insects, takes a toll in production of plant food for man beast. Irving Miles, an old Herald reader located at Platteville, has ordered his paper changed to Midland, S. D., until further notice. Walter Kohler of Kohler has definitely stated that he will not be candidate for governor. While Mr. Kohler had an excellent record in his first and only term as governor, he was defeated by Gov. La Follette two years ago. Critical conditions in business are Mr. Kohler's reasons for declining to run. He operates a large plumbing supply manufactory in the city which bears his family patronymic. There are SO many fine garden arrangements in Lancaster that picking one out now and then is somewhat embarrassing. However, will call attention to Will Henkel's lawnlattice, flowers, shrubs, etc. Next to it W. A. Calloway has fine grouping of trees and shrubs, the whole forming a bit of excellent landscaping. We still contend that civic organizations would do well to offer prizes and honorable mention for well kept places, thus providing an incentive to beautifying the city. Esquire B. A. Clemens of Cuba City is a candidate for the state legislature on the Republican ticket. He resides in the first Grant county district. Patrons and friends of the Register of Deeds office will be pleased to learn that Miss Ethel Utt will be a candidate to succeed herself in this important position. Reliable, competent and obliging, Miss Utt makes a fine public servant. Mr. and Mrs. Glen Trewartha of Madison sail June 11 from Seattle for Japan where they will spend the Mr. Trewartha, member of the university staff, will do research work on Japan and its geography. A return home will be made in the fall. The case of the receiver of the First National bank of Richland Center VS. Alta King, will be heard in the U. S. Court of Appeals at Chicago this week. In a previous trial in the district federal court at Madison it was held that the bank did not make Miss King a favored creditor by the sale to her of bonds a few days prior to the closing of the bank. The receiver has appealed from this decision.


Article from The Capital Times, July 6, 1932

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Luse Ruling in Bank Case Upheld Richland Bank Receiver Loses tempt to Reclaim $1,600 Withdrawal The opinion of the late Judge Claude Luse district court dismissing the Shell Smith, for the First National bank Richland Center, against Alta King been upheld by the announced today by Quale, district court clerk. Mr. Smith sued recover about from Alta King the grounds that had permitted her draw out the money when they knew that the bank was insolvent Judge ruled that no had declaring the insolvent prior withdrawal the money. Mr. Smith appealed the decision of Judge Luse The effect Sweden's abandonment the gold standard has much less than had been expected that country.