Farmers & Merchants State Bank

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: June 1, 1924*
Location: Washington, Iowa (41.299, -91.692)

Metadata

Model: gpt-5-mini
Short Digest: e10a2b07

Response Measures

None

Description

The bank was suspended and placed in receivership in June 1924 and remained closed for years; the 1927 article describes dividends paid by the receiver from liquidation proceeds. No run is described in the article.

Events (3)

1. June 1, 1924* Receivership

Newspaper Excerpt: L. A. Andrews, bank receiver...the receivership, which was opened in June, 1924, now has on hand...received from liquidation of assets and...cash collected on assessments against stockholders, making a total of $147,112.82 on hand.
Source: newspapers

2. June 1, 1924* Suspension

Cause: Government Action
Cause Details: Bank suspended and placed in receivership (frozen assets) in June 1924
Newspaper Excerpt: The receivership, which was opened in June, 1924...the bank has been closed nearly four years
Source: newspapers

3. September 29, 1927 Other

Newspaper Excerpt: In asking for the order paying dividends...payment of that amount would leave sample funds with which to protect rights of general creditors...the first 20 per cent payment was made, June 1, 1925.
Source: newspapers

Newspaper Articles (1)

1. September 29, 1927 Quad-City Times Davenport, IA

Article from Quad-City Times, September 29, 1927

Click image to open full size in new tab

Article Text

DIVIDEND PAID BY WASHINGTON BANK SATURDAY Depositors of Defunct Farmers Bank to Receive 20 Per Cent. Washingtin, la., Sept. 29.-L. A. Andrews, bank receiver, thru Fred Morrison. bank examiner in charge of the Farmers and Merchants State bank. has applied for court ruling authorizing the payment of 20 per cent dividend and Judge Charles A. Dewey has set 10 o'clock Saturday morning for the hearing on the petition. If the order is made. the payments can be accomplished within a short time and about $90,000 cash distributed to local depositors. The bank has been closed nearly four years and the depositors have received but one small dividend and have had several lawsuits over the matter. The bank was practically controlled by the Brookhart interests when it was suspended because of frozen assets. In the application for the order. the receiver sets forth that the receivership. which was opened in June. 1924. now has on hand. $61.344.20 received from liquidation of assets and $85,768.62 in cash collected on assessments against Estockholders, making a total of $147,112.82 on hand. It is related that all claims for preference have been adjudicated and paid except three. One of these is the claim of the city of Washington for $91,358.83. which was heard by Judge Dan Hamilton June. 1926. but on which no decision has been made up to the present. other two claims are those the American Commercial and Savings bank of Davenport for $1,857.34 and the Merchants National bank of Cedar Rapids for $3,355.37. In asking for the order paying dividends, It is set forth that payment of that amount would leave Sample funds with which to protect rights of general creditors. If this payment is ordered it will make the second 20 per cent dividend since the receivership of the local bank was opened, making but 40 per cent to the depositors, with more to come later when the settlement of the closed bank's affairs have proceeded further. The first 20 per cent payment was made, June 1, 1925, and the city of Washington at that time received 20 per cent of its claim for over $90,000 which it had on deposit at the time of closing of the bank.