Dakota National Bank (Sioux Falls, SD)

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BUSINESS DISASTERS

Blanket Mortgage Filed on Detroit's Leading Clothing House-Collapse of a National Bank in Dakota. Detroit, Nov. 23.-Mably & Co., one of the leading retail clothing firms of this city, filed a chattel mortgage for $150,000 to the Union Trust company, as trustees for the creditors. A blanket mortgage, covering the entire stock, was made to the Union Trust company. Judge Donovan has appointed the Union Trust company receiver to carry on the business in accordance with the chattel mortgage. The indebtness is little less than $400,000. BANK FAILURE IN DAKOTA. Washington. - The comptroller 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; surplus, $50,000, and liabilities, $230,000.

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RUN ON A BANK

The Dakota National Bank Compelled to Close its Doors. Sioux Falls, N. D., Nov. 24.-The Dakota National bank has closed its doors on account of a heavy run. The bank is heavily loaded with real estate of a depreciated nature but the officers hope to reorganize and resume business. The last statement issued October 8 showed $176,000 deposits and loans and discounts of $198,000.

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Bank Disaster

Sioux Falls, S. D, Nov. 24.-The Dakota National bank closed on account of a heavy run. The bank is heavily loaded with real estate of a depreciated nature. The officers hope to reorganize and resame. The last statement showed $816,000 deposits; loans and discounts, $198, 000.

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DAKOTA BANK FAILURE

Sioux Falls, S. D., Nov. 24.-The Dakota National bank closed its doors on account of a heavy run which left less than $1,000 in cash on hand. The bank was 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 8th, showed $176,000 deposits and loans and discounts of $198,000.

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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.)

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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.

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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.

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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

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Sioux Falls, N. D., Nov. 24.-The Dakota National bank has closed its doors on account of a heavy run. The bank is heavily loaded with real estate of a depreciated nature, but the officers hope to reorganize and resume business. The last statement issued October 8, showed $176,000 deposits and loans and discounts of $198,000.

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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.

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ANOTHER BANK GONE SIOUX FALLS, S. D., Nov. 24.-The Dakota National bank has closed on account of a heavy run. The bank is 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.

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Failure Caused by a Run

SIOUX FALLS, Nov. 24.-The Dakota National bank closed its doors on account of a heavy run which left less than $1000 in cash on hand. The bank was 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 $198,000.

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Sioux Falls Bank Suspends

W ASHINGTON, Nov. 24.-The comptroller 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.

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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.

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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.

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A South Dakota Bank Falls

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.

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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.

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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.

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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.

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Ex-Bank Examiner, C.F. Zimmerman has closod up his bank at Iroquois and will remove with his family to Sioux Falls, where he is now receiver of the Dakota National bank.

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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.

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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.

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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-