Kendrick State Bank - Kendrick, ID

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: state
Start Date: February 13, 1912
Location: Kendrick, Idaho (46.614, -116.647)

Metadata

Model: gpt-5-mini
Short Digest: dff875e9

Response Measures

Capital injected, Full suspension, Books examined

Other: Depositors organized and purchased capital stock to recapitalize the bank.

Description

Depositors made a 'wild scramble' for funds after the county voted to go 'wet', causing heavy withdrawals; the State Bank Examiner ordered Kendrick State Bank closed in mid-February 1912. Depositors organized, sold capital stock and recapitalized the bank; the bank was reported reopened by April 1912. Dates derived from newspaper publication dates (closure reported Feb 13–14, 1912; reopening reported by Apr 12, 1912).

Events (4)

1. February 13, 1912 Run

Cause: Local Shock
Cause Details: County voted to adopt a wet policy (licensed saloon); depositors hurried to withdraw funds to buy saloon licenses, rapidly draining deposits.
Measures: State Bank Examiner ordered the institution closed after deposits dwindled; depositors later organized to raise capital.
Newspaper Excerpt: Because Idaho county voted to adopt a wet policy ... there was a wild scramble by depositors to obtain their money ...
Source: newspapers

2. February 13, 1912 Suspension

Cause: Government Action
Cause Details: Closed by State Bank Examiner Platt after heavy withdrawals left reserves insufficient; examiner ordered suspension.
Newspaper Excerpt: State Bank Examiner V. W. Platt ordered the institution closed and later issued an order closing the Kendrick State bank.
Source: newspapers

3. February 16, 1912 Other

Newspaper Excerpt: Depositors met ... decided to take over the institution and run it under new management ... sold capital stock (shares $100) which were readily bought, raising $40,000 instead of $25,000 requested; officers elected and new organization formed to reinstate the bank if possible. (From Kendrick Gazette, Feb 16, 1912.)
Source: newspapers

4. April 12, 1912 Reopening

Newspaper Excerpt: The Kendrick State Bank, which was closed early in February, was opened this week by State Bank Examiner Platt.
Source: newspapers

Newspaper Articles (4)

1. February 14, 1912 The Salt Lake Tribune Salt Lake City, UT

Article from The Salt Lake Tribune, February 14, 1912

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Article Text

BANK FAILS BECAUSE COUNTY VOTES WET So Many Scramble to Get Money for Licenses That Deposits Quickly Dwindle, Special to The Tribune, BOISE. Idaho, Feb. 13.-Because Idaho county voted to adopt a "wet" policy and have the licensed saloon, there was a wild scramble by depositors to obtain their money from the Elk City State bank to buy saloon licenses. draining and breaking that bank. State Bank Examiner V. W. Platt ordered the institution closed and later issued an order closing the Kendrick State bank. in Kendrick, Idaho. Both may be able to resume business when the bank examiner has completed his Investigation. The Kendrick bank carried the personal notes of the officers and directors amounting to $25,000. The suspension of the Kendrick State bank came as a surprise. When the examiner closed its doors that banking house had assets of approximately $165,500, while the liabilities. exclusive of the capital stock of $25,000, were $137.000. The deposits subject to check amounted to about $90,000; certificates of deposit. $15,000: cashier's checks. $12,000; cash and exchange item. $20,000: bank building and fixtures. $10,500: other real estate. $5500. The remainder was made up of loans and discounts. Every effort was made to save the institution from going to the wall. but the necessary money to increase the legal reserve could not be secured.

2. February 16, 1912 The Kendrick Gazette Kendrick, ID

Article from The Kendrick Gazette, February 16, 1912

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Article Text

Upon Fourty-eight Hours Notice Two Hundred Farmers Gather in Kendrick GREAT ENTHUSIASM AROUSED New Organization Formed and Officers Elected-Martin V. Thomas Chosen President-Potlatch Soil Real Backing of New Institution. Last Thursday morning February 8 opend and we will step in and back the Kendrick State Bank was closed it for every dollar necessary for the by the Bank Examiner. The closing continuance of the same. After of this bank cast a gloom over the this meeting was closed the doors town of Kendrick and the entire Potwere opened and people who were not latch country that made it look as depositors were allowed to enter if everything was lost and the citizens they so desired and there was a large made to lose their hard earned dollars. number of well to do farmers come During the day, Thursday every one in. The Bank Examiner explained was at a loss as what to do or say. to them it was necessary to act quick Friday several of the main depositers and that $25,000 had to be raised were called together and upon due for capital stock and papers were consideration it was thought best to circulated for signers for capital. call a general meeting of the deposiThe shares were placed at $100 and ters of the closed institution. So sold readily for $150 per share. the meeting was called and upon noDuring the afternoon the capital tice of only about forty-eight hours stock was all sold and instead of the farmers who were the principal getting $25,000 they sold $40,000, depositors in said bank began to arand then not all that wanted stock rive in Kendrick early Monday morngot it. The meeting was then ading and by noon the streets were journed until Tuesday when the new crowded with over two hundred of stock holders met and elected officers the farmers of the Potlatch. It made the old timers remark that the town and paid for their stock. The follooked more like old times than it lowing officers were elected: M. V. had for some time past. A great Thomas, President; Claus Eickner, many suggestions were given as the Vice-President; Directors, James best course to follow in the matter so Langdon, Sam Callison, Jessie Hofat the appointed hour for the meeting fman, A. Galloway, G. H. Zieman, the depositors were called to order in N. Brocke and Joseph Schultz. the Fraternal temple and facts existWith the support of the farmers ing in the matter was laid before them of this country, it will make this inand was left up to them to decide as to whether or not the bank was to stitution one of the strongest of its be allowed to be kept closed or to size in the state. It has not been be reinstated and kept running. stated just when the bank will open This body of depositors, which reas several matters have to be adjusted presented over a hundred thousand before the new organization can take of dollars said yes it shall be recharge.

3. February 16, 1912 The Rathdrum Tribune Rathdrum, ID

Article from The Rathdrum Tribune, February 16, 1912

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Article Text

STATE AND COUNTY NEWS Items of Interest Gathered From Exchanges. OF INTEREST TO IDAHOANS. Events and Industrial Progress Of the Week. It is now estimated from figures in the state auditor's office that the recent special session of the legislature cost $18,262.62. On February 7, Governor Hawley vetoed house bill No. 26, passed at the special session of the legislature. The bill related to the predatory animal fund. The Idaho state board of equalization virtually decided to divide the state into three districts in order to facilitate the work in securing the equalization of taxes. The Republicans of Shoshone county started the campaign Feb. 12 with a big "get together" meeting at Wallace. Convicted under the search and seizure law, Dr. Frank T. of been fined sentenced Gooding has to three months $500 Cary in and the county jail for Illegal sale of liquor. Baseball fans of Spirit Lake are trying to organize a league of the towns on the I. & W. N., to include Rathdrum, Spirit Lake, Ione, Newport and Metaline Falls. A meeting to discuss the matter was held at Spirit Lake Feb. 15. Several school districts of Bonner are on account taxes county of not having short levied of funds any special last fall. The Granite district has 80 pupils, no funds, and a proposed special bond issue to raise money was recently voted down. John M. Haines of Boise has anfor on ticket. nounced the Republican his candidacy governor Carl Haho of Twin has also recently race for subject entered the Falls, governor, to the Republican primaries. Yielding to solicitations of friends in all of of the Budge, judge parts the Fifth state, judicial Alfred district, comprising the counties of Bannock, Bear Lake and Oneida, has formally announced his candidacy for the supreme bench on the republican ticket. The depositors of the Kendrick State bank, recently closed, met at Kendrick, Monday, and decided to take over the institution and run it underste management. The dehave positors, mostly ranchers, who $118,000 in the bank will now not lose dollar. A republican primary election is to to the elect be held 17 in delegates Latah county April state 27, con- to vention which is to choose state deleKates to the Chicago national convention. At this primary election of the are an to their given the republicans opportunity express county choice for presidential candidates. Judge Edward A. Walters, in the district court of Twin Falls county, heard 10 "bootlegging" cases last week. Four of the defendants pleadwere sentenced county jail and to days in the ed guilty and to pay 60 costs of cases fine of $500 and remaining criminal were suit. set The for trial to commence the 19th inst., before Judge Stockslager. A Coeur d'Alene news item states former and more superintendent that R.C. Egbers, recently county probate judge of Kootenai, has announced that in all probability he for on the erintendent will be candidate this year county republi- supcan ticket. O. R. Shero, also a former erintendent, it is said will also again be a candidate for the place. Two banks in Idaho, one at Elk City,Idabo county, and the other at Kendrick, Latah county, were closed recently by order of State Bank Commissioner V. W. Piatt, during the

4. April 12, 1912 Camas Prairie Chronicle Cottonwood, ID

Article from Camas Prairie Chronicle, April 12, 1912

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Article Text

NEWS AROUND THE STATE Items From Various Places Reproduced for the Benefit of our Readers-Stories Rehashed from Exchanges. Pitcher Al. Bonner, of Lewiston, has been released by the Philadelphia team to the New Orleans team. The Kendrick State Bank, which was closed early in February, was opened this week by State Bank Examiner Platt. The Lewiston ball team shut out the Myrtle Indian team Sunday by a score of 10 to 0 in the fastest game ever played in that city. The spring session of the supreme court at Lewiston closed Wednesday afternoon, the session having been an unusually busy one Winchester and Forest have been undergoing a mad dog scare recently and all of the ownerless canines in those towns have been gathered to their fathers. The White Bird Sentinel has suspended publication owing to the fact that the recent fire at that place cut down its patronage to such an extent as to make its existence impossible. A divorce was granted the wife of former secretary of state Robert M. Lansdon at Boise recently and she was given the custody of their little daughter. Mrs. Lansdon gave desertion as her grounds for divorce. One of the trained leopards in the Parker show at Lewiston turned on its lady trainer Tuesday night as her back was turned and sank its teeth deep into the calf of her leg. The big cat sneaked away as soon as the trainer turned on her and the injured lady was at once removed from the cage and hurried to a physician where her injuries were dressed. Many in the audience did not even know anything wrong had happened, so quickly was it all over. Pong Bone, a Chinese laundry worker from Butte, dropped into Wallace one day last week and after being refused accommodations in the at city all finally of the rooming took the houses advice of the sheriff and stayed in the jail until he could take the return train for Butte. The Coeur d'Alene towns have never permitted any Celestials to remain there, and, while Pong Bone was not subjected to any ill treatment, the officers feared for the result if he was left on the street until night and decided to keep him in jail for safety. Wallie Allen, who was arrested several weeks ago in company with a youth named Murray at Lewiston on a charge of raising a check from $3.05 to $30.05, was released this week as the evidence was not considered sufficient to convict him. The charge against Murray was also dismissed, he having escaped from jail shortly after his arrest. The check in question was secured from a farmer near Grangeville who claimed it had been raised. Allen claimed the farmer made the mistake himself when the check was written.