22920. Stoughton State Bank (Stoughton, WI)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
June 1, 1899*
Location
Stoughton, Wisconsin (42.917, -89.218)

Metadata

Model
gpt-5-mini
Short Digest
7881fa67

Response Measures

None

Description

Newspapers show the Stoughton bank was placed in receivership in mid-June 1899 (receiver G. E. Roe) with assets/liabilities reported and discussion of paying depositors — indicating closure. Later items (Aug 1899) describe a brief run precipitated by an unfavorable bank examiner report that was met by local support. There is some ambiguity/OCR noise: Article 1 refers to a defunct Dane county bank but names Stoughton; I treat this as the Stoughton State Bank being closed in June and in receivership. Thus the overall episode is a suspension/closure (receiver assigned).

Events (3)
1. June 1, 1899* Other
Newspaper Excerpt
The assets the defunct Dane county bank are ... liabilities ... Of the assets, $110,000 in notes and overdrafts against the Grand Falls Irrigation company ... Cashier Joice ... is reported to have been interested in Texas land and Mexican cattle ranches.
Source
newspapers
2. June 12, 1899 Receivership
Newspaper Excerpt
G. E. ROE RECEIVER. Statement Given Out of the Condition of Defunct Stoughton Bank. ... receiver, Attorney G. E. Roe of Madison, was appointed by Judge ... Medison, Wis., June 12.-The failure the Stonghton bank was no surprise to bank men here.
Source
newspapers
3. August 1, 1899* Run
Cause Details
Run precipitated by an unfavorable public report from Bank Examiner Kidd (public notification of faulty securities).
Measures
Local business men rallied to support the bank and allayed depositors' fears.
Newspaper Excerpt
The run that was started last week on the Stoughton State Bank has apparently ceased, the scare being only for a day. The run was precipitated by the unfavorable report of the condition of the bank published by Bank Examiner Kidd, but the business men of Stoughton rallied to the support of their financial institution and soon allayed the fears of the depositors.
Source
newspapers

Newspaper Articles (4)
1. June 17, 1899 The Superior Times Superior, WI
Article from The Superior Times, June 17, 1899

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Article Text

G. E. ROE RECEIVER. Statement Given Out of the Con dition of Defunct Stoughton Bank. Smachton, Wis., June 12.-The assets the defunct Dane county bank are LIVED $223,000, with liabilities of $173,000 Of the liabilities $155,172 are depositors: of the assets, $110,000 17, notes and overdrafts against the Grand Falls Irrigation company of Grand Falls, Tex., composed of W. Olson of Chicago, I.O. Brickof Deerfield and others. The validar of the $110,000 of this kind is congistoral If these foreign loans can be qualized on. the creditors will be paid in full without the enforcement of the stat111011 liabilities of the stockholders and dipators All the outside loans, aggregatin about $110,000. were taken on the recommendation of Cashier Joice, who to have been interested in Texas land= and Mexican eattle ranches. 1 O Brickson. who is interested in a bauk of Deerfield, and who has been an extensive tobacco buyer there. and who www.mosidered well off, is indebted to the bank in a large sum. At present Mrs. Brickson is on his cattle ranch in MexiIt is rumored that he will have diffionly in meeting his obligations. Cashier Joice has returned from Kansas and his brother, Peter M. Joice, reported to be wealthy, and who stockholder in the bank until last number. is expected to arrive from his home in Lake Mills, Ia.. Monday. receiver, Attorney G. E. Roe of Madison. was appointed by Judge Sieposher in chambers. Medison. Wis., June 12.-The failure the Stonghton bank was no surprise to bank men here. Six months ago when Madison bankers were forced to cut the rate on savings and certificates deposit from 3 to 2 per cent. because was dit cult to loan money, the Stough11 bank offered 4 and 5 per cent.

2. June 27, 1899 Watertown Republican Watertown, WI
Article from Watertown Republican, June 27, 1899

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Article Text

TO PAY EVERY DOLLAR. Cashier of the Defunct Stoughton Bank will Pay His Creditors. Stoughton, Wis., June 23.-[Special.] -Attorney Wait, speaking for Receiver Roe, has given out the following statement in regard to the defunct Dane county bank: The liabilities of the bank amount to about $180,000. There has been an immense amount of money spent by the Grand Falls Irrigation and Improvement company in digging canals, ditches, etc., and it seems very probable that the property owned by the company can be disposed of so that the creditors will be able to realize considerable from that source. I am convinced that if we can get men of means interested, that we can dispose of it at a fair value and the same is being now bonded for $100,000 with the view of disposing of it. I am informed by J. H. Joice that he hopes to be able to make good to the creditors every dollar that has been loaned with his consent even though nothing is realized from the Texas or Mexico property. Mr. Turner expects to be able to pay his indebtness to the bank in a few days.

3. August 25, 1899 The Wisconsin Tobacco Reporter Edgerton, WI
Article from The Wisconsin Tobacco Reporter, August 25, 1899

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Article Text

Stoughton Bank Matters. The run that was started last week on the Stoughton State Bank has apparently ceased, the scare being only for a day. The run was precipitated by the unfavorable report of the condition of the bank published by Bank Examiner Kidd, but the business men of Stoughton rallied to the support of their financial institution and soon allayed the fears of the depositors. The action of Mr. Kidd, whether justifiable or not, has caused a good deal of feeling in Stoughton which is doubtless voiced in the following quotation from The Hub. "It may as well be put plainly and bluntly-and the Hub caters to no man and fears none, when it makes the broad statement that there is nasty mischief behind the attempt made this week to wreck the Stoughton State Bank. Conspiracy is, perhaps, too harsh a word, but there appears to be evidence enough in sight to establish the charge that the run precipitated upon this bank was a deliberate, villianous and malicious blow aimed at the institution by a coterie of its enemies, and was ment to smash it into smithereens and drive it out of business forever. We believe the Stoughton State Bank to be absolutely solvent, today, able and ready to meet every obligation, and that it will weather this gale gallently and pay every dollar rightfully demanded at its counter. No greater calamity, commercially speaking, could overtake our city than the downfall of this bank, and fall it must not and will not. If its banking methods have not always been technically conservative, and in strict conformity with the "code" as laid down in the books, it has been a good bank for Stoughton all the time, every day in the year, as nine-tenths of our business men can attest." An action, similar to that brought against the stockholders of the old Bank of Edgerton, has been commenced against the stockholders of the defunct Dane County bank in the Dane county circuit court. The suit demands judgement for all shortages which the bank fails to pay its depositors. The original complaint has been demured to and later amended. J. M. Clancoy is attorney for all the defendants except ore.

4. August 31, 1899 Grant County Herald Lancaster, WI
Article from Grant County Herald, August 31, 1899

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Article Text

An Unprejudiced Witness. It is not presumable that the Milwaukee Journal is predisposed to excuse failures of republican officials. If Bank Examiner Kidd's course in dealing with the Stoughton bank was censurable the Journal would doubtless have been among the ffrst and most violent to condemn it. Therefore, when that paper commends the action of a republican official, it must be accepted as presumptive evidence that there is no ground for complaint. August 21st the Journal editorialy said: "In this case, it seems, Mr. Kidd did just what the law requires. He found the bank in his opinion faulty in its securities, gave the preliminary notice and followed it up with a public notification to right up the condition complained of. The result was a run on the bank, which through the efforts of the bank and the friends who gathered about it, was successfully met. Now what would they have? The purpose of the second notification required by law is plainly to compel the bank to strengthen its capital, reduce its liabilities and to restore impaired securities or replace them with good. That depositors get scared and make a run on the bank may be a every uncomfortable result, but it is incident to the operation of the law, which may at once be conceded to be faulty and ineflicient. The law is not a good one; but the question is whether Comptroller Kidd obeyed it in good faith. That is all he has to answer for. He is not responsible for the consequences of obedience. The charge that he attacked the bank to ruin it, that others might start another bank in its place, may be set down as too extraordinary for ready belief. It is probably the outgrowth of resentment for his interference under the law. He is entitled to credit for his official acts till the contrary is shown. He should not be compelled to suffer more for obeying the law than for neglecting to obey it."-The State.