3991. Fidelity State Bank (Orofino, ID)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: April 8, 1921
Location: Orofino, Idaho (46.479, -116.255)

Metadata

Model: gpt-5-mini
Short Digest: 79114c86

Response Measures

None

Description

The Fidelity State Bank at Orofino voluntarily suspended on April 8, 1921 after the correspondent First National Bank of Clarkston was closed by the comptroller; a receiver (O. M. Holmberg) was appointed later in April indicating permanent closure. No run on deposits is described in the articles — closures are linked to correspondent failure and inability to realize on farm paper in the Waterman chain.

Events (2)

1. April 8, 1921 Suspension

Cause: Correspondent
Cause Details: Voluntarily suspended after receipt of word that the correspondent First National Bank of Clarkston was closed by the comptroller; underlying cause cited as inability to realize on farm paper and devaluation of wheat tickets tied to the Waterman chain.
Newspaper Excerpt: the four state banks controlled by the Watermans in Idaho voluntarily closed their doors... and the Fidelity State bank, at Orofino, deposits, $150,000.
Source: newspapers

2. April 28, 1921 Receivership

Newspaper Excerpt: O. H. Holmberg has been appointed receiver of the Fidelity State Bank at Orofino... appointed receiver of the Fidelity State bank, one of the five institutions of the Waterman group that suspended a short time ago, and will assume charge of its affairs at once.
Source: newspapers

Newspaper Articles (15)

1. April 8, 1921 Clearwater Republican Orofino, ID

Article from Clearwater Republican, April 8, 1921

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Fidelity State Bank Closes LOCAL INSTITUTION CLOSES WITH CHAIN OF WATERMAN BANKS "By order of the board of directors this bank 'is ordered closed." These words were typewritten on a sheet of paper that was affixed to the door of the Fidelity State Band today at noon. The sign created some discussion, but not a panic when the news was purveyed on the streets during the afternoon. Indeed, there is no necd for excitement. The local institution was one of a chain known as "The Waterman Banks." The main banking house was located at Clarkston and had deposits aggregating more than a million. The Clarkston bank was closed this morning by order of the bank examiner. George Waterman, who is the nominal head of the Waterman system, wired all the banks in the chain to close their doors at once. This order was complied with. Cashier Schmid reports that there is no need of alarm. The closing of the doors is due wholly to the inability of the banks to realize on their securities. The deposits are backed by the loans, by the capital and surplus, together with accrued interest on securities. So far as is known, however, the banks will pay one hundred cents on the dollar when all acounts are balanced. Mr. Schmid and his assistants have built up a growing banking business and it is hoped and expected that the bank will soon again open for the resumption of business.

2. April 9, 1921 The Evening Herald Albuquerque, NM

Article from The Evening Herald, April 9, 1921

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Five Banks in Lewiston, Idaho Region Close LEWISTON Idaho, April 9.-Five banks in this region were closed yesterday. One of them. the First National of Clarkston. Washington was closed on orders of the comptroller of the currency. it was announced The other four. all state banks in Idaho and correspondents of the national institution. were closed on receipt of word that the Clarkston establishment had been closed They are: 1 he State Bank ot Kamiah. in Lewis county; the State Bank of Kooskia, Idaho county: the State Bank of Peck, Nez Perce county, and the F1delity State Bank at Orofino, Clearwater county Deposits of the National bank amount to more than $600.000; it is estimated the combined deposits of the four state banks are about $400.000 The national bank's resources at the last report were given as $918,931. Inability to realize on farm paper the reason assigned for each closing

3. April 9, 1921 Pueblo Chieftain Pueblo, CO

Article from Pueblo Chieftain, April 9, 1921

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n 4 REAL PLATFORM had a queer dream last night." Me. too; I thought that George Washington was running for President again. on a cherry tree platform." F.M. GOOD COMPANY Uncle Jack: Now Willie, I wonder if you know who never told a No? Willie: Yep-ME and George Washington! 5 OREGON BANKS ORDERED CLOSED Lewiston, Idaho, April 8.-Five banks in this region were closed today. One of them, the First National of Clarkston. Washington, was closed on orders of the comptroller of the currency it was announced. The other four. all state banks, in Idaho and correspondents of the national institution were closed on receipt of word that the Clarkston eabeen closed. Bank of the State are: tablishment Lewis The county: State had Kamiah, Bank They in of Kooskia, Idaho county: the State Bank of Peck. Nez Perce county. and the Fidelity State Bank of Orofino, Clearwater county. Deposits of the national bank amount to more than $600,000 it is estimated the combined deposits of the four state banks are about $400,000. The national bank's resources at the last report were given as $918,931. Inability to realize on farm paper was the reason assigned for each closing. HARDING PREPARING MESSAGE Washington, D. C., April -President Harding is devoting much of his time to the preparation of his first message to congress. It will be presented on Tuesday and it may be that the executive will appear at a joint session to read it--a custom revived by President Wilson. The present understanding is the message will cover a wide range of subjects including besides many domestic questions, the administration peace program. It probably will not be completed before Mon. day.

4. April 14, 1921 Idaho County Free Press Grangeville, ID

Article from Idaho County Free Press, April 14, 1921

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BANKS ALLFIVEL OF WATERMAN STRING SHUT First National, at Clarkston, Is Forced to Close Doors on Orders from Washington Affiliated State Institutions Then Voluntarily Suspend; Kooskia and Kamiah Hit Five banks, known as the Waterman "string" of banks, in the Clearwater valley, and at Clarkston, Wn., were closed last Friday. The First National bank, at Clarkston, with deposits aggregating $650,000, vas closed by National Bank ExaminL. M. Sawyer, on instructions from or at the comptroller of the currency, Washington, D. C. FOUR OTHERS SUSPEND Following the closing of the Clarkson bank, the four state banks controlled by the Watermans in Idaho oluntarily closed their doors. These anks are: State Bank of Kooskia, at Koostia, deposits, $195,000. Fidenty State bank, at Orofino, deposits, $150,000. State Bank of Kamiah, at Kamfah, deposits, $250,000. State Bank of Peck, at Peck, deposits, $65,000. C. F. Waterman is president of e First National bank, at Clarksis ton; his son, George Waterman, ace president, and another son, W. U. Waterman, is cashier. George Waerman also is président of the four ate banks in Idaho, all of which sere correspondents of the Clarkston institution. FRALICK ON GROUND J. G. Fralick, state commissioner of ommerce and indust this week inspected the four banks in Idaho, nd a statement on the situation is ficially withheld pending completion the investigation. The State Bank of Kooskia, F. E. mick, cashier, has always been condered in local circles as a sound in itution, and it is believed here that was only the bank's connection ith the mother bank at Clarkston hich caused it to close its doors men the parent institution was foreto suspend. It is reliably reported that a moveent is on foot to reorganize the ooskia bank, with the entire capiI in the hands of Kooskia men, and at the bank will shortly be reopened.

5. April 15, 1921 Cottonwood Chronicle Cottonwood, ID

Article from Cottonwood Chronicle, April 15, 1921

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BANKS CLOSE DOORS. The First National bank of Clarkston, Wash., with deposits of more than $600,000, controlled by the Waterman interests, was closed Friday by National Bank Examiner Sawyer, and immediately following the State Bank of Kamiah, the State Bank of Kooskia, the State Bank of Peck and the Fidelity State Bank of Orofino, all in Idaho, and controlled by the Waterman group, with aggregate deposits of $400,000, also suspended. Neither the bank examiner nor officials of the involved institutions will make any statements, but men who profess to be closely in touch with the situation say that the failures are ue to inability to realize on loans, much of which are secured by wheat tickets, which have depreciated in value because of the recent heavy slump in grain prices. The last statement of the First National Bank of Clarkston on February 21, 1921, showed total resources of $918,931. The bank was organized seven years 1 ago, with a capital of $50,000 and the surplus, as shown by the last statement, was $20,000. E C. F. Waterman is president; 3 E George Waterman, vice presi: dent, and W. A. Waterman, cash: ier. George Waterman is president of the four suspended Idaho banks. I e Closing the banks came as a surprise to the general public in his district, as there was con) fidence in the strength of the Waterman institutions. So far as can be learned, the integrity . of the men in control is not E questioned, the failures being ascribed solely to bad business 1 judgment. The deposits of the Fidelity 3 State Bank are $150,000. B.R. 1 Schmit is the cashier. . The State Bank of Kamiah has S $250,000 on deposit and the cash ier is Ward Dempsey. 0 The deposits of the State Bank of Kooskia reach $195,000. F. E. Quist is cashier. The deposits of the State Bank of Peck are $65,000. J. A. Hage genmiller is cashier. n Reports from the localities affected are that the citizens are : accepting the situation with pag tience, and appreciation is being expressed as to the promptness ; with which the state is acting.

6. April 16, 1921 Mountain Home Republican Mountain Home, ID

Article from Mountain Home Republican, April 16, 1921

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Four Idaho Banks Closes Friday. Five banks in the region of Lewiston were closed Friday. One of them, the First National of Clarkston, Washington, was closed on orders of the comptroller of the currency, it was announced. The other four, all state banks in Idaho and correspondent of the national institution were closed on receipt of word that the Clarkston establishment had been closed. They are: The State bank of Kamiah, in Lewis' county; the State bank of Kooskia, Idaho county; the State bank of Peck, Nez Perce county, and the Fidelity State bank at Orofino, Clearwater county. Deposits of the National bank amount to more than six hundred thousand dollars; it is estimated the combined deposits of the four state banks are about four hundred thousand dollars. The National bank's resources at the report were given is $918,931. Inability to realize on farm paper was the reason assigned for each closing.

7. April 22, 1921 The Producers News Plentywood, MT

Article from The Producers News, April 22, 1921

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5 Banks in Idaho, Washington are Closed in One Day Lewistown, Ida., April 8.-Five banks in this region were closed today. One of them, the First National of Clarkson, Wash., was closed on order of the comtroller of the currency, it was annoonced. The other four, all state banks in Idaho and correspondents of the national instittuion, were closed on receipt of the word that the Clarkson establishment had been closed. They are: The State Bank of Kamish, in Lewis county; the State Bank of Kooskia, Idaho county; the State Bank of Peck, Nez Perce county, and the Fidelity State at Oro Fino, Clearwater county. Deposits of the national bank amount to more than $600,000; it is estimated the combined deposits of the four state banks are about $400,000. The National Bank's resources at the last report were given as $918,931. Inability to realize on farm paper was the reason assigned for each closing.

8. April 22, 1921 Clearwater Republican Orofino, ID

Article from Clearwater Republican, April 22, 1921

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BANK DEPOSITORS HOLD MEETING 150 People Discuss Future Action and a Committee is Appointed In response to a call from J. G. Fralick, commissioner of finance for the state of Idaho, 150 people, all depositors in the suspended Fidelity State Bank, met last night at the Odd Fellows hall. John Oud was chairman of the meeting. Mr. Fralick gave an outline of the condition of the bank's affairs. He gave the assets and liabilities, stating what sums of money were due from notes and other paper. The assets were divided into three different classifications good, doubtful and bad. As these assets are the private concern of the depositors, they are not given for publication. It may be stated in general terms, however, that Mr. Fralick offered to the depositors no false hopes. He held his statements down to terra firma, underestimating rather than overestimating the visible assets. Victor E. Warner, of Jerome, is in charge of affairs under the direction of Mr. Fralick. Expert accountants will be on the ground next week to make a final accounting of the business. O. H. Holmberg has been selected as special deputy in charge. Confirmation of his appointment is expected next week. He will work in conjunction with the committees appointed by the depositors to liquidate the affairs of the bank. Two committees were appointed as follows: First, a general committee, composed of representatives from the different sections of the county, as

9. April 28, 1921 The Nezperce Herald Nezperce, ID

Article from The Nezperce Herald, April 28, 1921

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WAIVE PRELIMINAY IN BANK CASE. Waterman, Dempsey and Roth Held to District Court Under $2,500 Bonds. Charge Making False Reports. George H. Waterman, Ward Dempsey and Leslie Roth, president, cashier and assistant cashier of the State Bank of Kamiah, were arrested in Lewiston last Thursday by Sheriff Smith of this county on the charge of making false reports to the state bank commissioner on the condition of that bank, which was closed by the state banking department on April 8. The three men were brought to this city last Thursday evening and shortly after their arrival here appeared before Probate Judge Ellis, who bound them over to appear before him on May 3 for their preliminary hearing. The bond required of Waterman and Dempsey was $2,500 each and Roth's bond was fixed at $1,500. Local parties went on their bonds and the three bank officials returned to Lewiston on the Friday morning train. Information has just been received by Prosecuting Attorney Pennell through Attorney Miles S. Johnson, of Lewiston, counsel for the defendants, that they waive preliminary examination; which means that their case will be continued over to the next term of the Lewis county district court, in September. The bonds for their appearance will be continued in the same amounts. The Bank of Kamiah had deposits aggregating about $250,000 at the time it was closed, and information given out by the state bank commissioner indicates that only a small per cent of this will be available for return to the depositors. Of the other defunct Waterman banks, steps have been taken to reopen the Kooskia Bank under a local organization, and it is understood that institution will be ready for business in a few days. This bank seemed to be less involved than any of the other four in the chain. O. H. Holmberg has been appointed receiver of the Fidelity State Bank at Orofino, another of the chain, and it is given out that depositors of this bank will receive a little less than 50 per cent of their deposits,

10. April 29, 1921 The Rathdrum Tribune Rathdrum, ID

Article from The Rathdrum Tribune, April 29, 1921

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IDAHO NEWS PARAGRAPHS Recent Happenings In This State Given in Brief Items for Busy Readers. Rancher Shot and Killed. BOISE.-John G. Bleak, Wendell, Idaho, rancher, was shot and instantly killed by an unknown assailant at his home recently. Gooding county authorities have failed to find a clue to the assailant or motive. Holmberg Is Bank Receiver. OROFINO.-Announcement is made by State Bank Commissioner J. G. Fralick that O. M. Holmberg of Orofino had been appointed receiver of the Fidelity State bank, one of the five institutions of the Waterman group that suspended a short time ago, and will assume charge of its affairs at once.

11. April 29, 1921 Clearwater Republican Orofino, ID

Article from Clearwater Republican, April 29, 1921

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IDAHO NEWS PARAGRAPHS Recent Happenings in This State Given in Brief Items for Busy Readers. Rancher Shot and Killed. BOISE.- John G. Bleak, Wendell, Idaho, rancher. was shot and instantly killed by an unknown assailant at his home recently Gooding county authorities have failed to find a clue to the assailant or motive. Holmberg Is Bank Receiver. OROFINO.-Announcement is made by State Bank Commissioner J. G. Fralick that O. M. Holmberg of Orofino had been appointed receiver of the Fidelity State bank, one of the five institutions of the Waterman group that suspended a short time ago, and will assume charge of its affairs at once. May Get Big Timber Tract. BOISE.-Three hundred and fifty million feet of timber on the south fork of the Payette river may be purchased from the government by an eastern lumber concern. it was announced by forestry officials here re cently. The company also proposes to build huge sawmills at Horseshoe Bend. Ellard Goes To Canal Zone. MULLAN.- F. Ellard, manager of the Morning club, has resigned and gone to Washington, D. C.. The government has recently called for a large increase in the club and social facilities in the canal zone at Panama and Solon and Mr. Ellard has been chosen to assume entire direction of the work. Lumber Mill Resumes. COEUR D'ALENE.- The Blackwell resumed operations in the sawmill shut down nearly ter Lumber April being 21 company The and machinery all yards winter afand spring for repairs. has been overhauled and no more shutdowns are expected for many months. The planer has been running continule ously. The day shift only was started S and about 175 men are employed in the t mill and yards. The Coeur d'Alene e mill is running steadily with day and In night shifts in the planing mill. g Bankers Freed On Bonds. It NEZ PERCE.-Geor H. Water1, man, president; Ward Dempsey, cashle ier, and Leslie Roth, assistant cashier of the State Bank of Kamiah, arrested Jon the charge of making a false report Cto the state bank department, the d charge also involving allegation of n false entries, were later released on e bond for preliminary hearing May 3. Bond was fixed at $2500 for Waterman and Dempsey and $1500 for Roth. The Kamiah bank closed on April 8 when the correspondent First National Bank of Clarkston, Wash., closed. r Forestry Officials Meet. MISSOULA, Mont. - Representatives of lumber companies in Idaho 1and the forestry officials of that e state met in conference recently with u foresters in district No. 1, on cois operativ fire protection in the north e Idaho country. W. B. Humiston of 's the Potlatch Lumber company, Potin latch, Idaho, and C. L. Billings of the is Rutledge Timber company representa ed the lumber interests, while I. H. of Nash, land commissioner for the state rs of Idaho, and Ben E. Bush, Idaho ti state timber cruiser. represented the state of Idaho. st le Miners' Pay Reduced. $1. KELLOGG.-A wage reduction of 50 y cents a day to mine employes and 7' of cents a day to smelter employes was d announced recently by the Bunker Hill en and Sullivan Mining and Concentratne ing company. Similar announcement s wage 11 also made ed company their of edonia 50 miners cents Mining a was day and reductions by the the Sierra Cal- to 40 Nevada Consolidated Mining company, ry and later the Federal Mining and r Smelting company and the Hecla Minr's ing company posted the same notice. he The wage reductions announced will at affect about 2500 men. They are efso fective May 1. Miners will receive ve $4.25 and muckers $4 under the new se- schedule. he Plan Idaho Mining Program. ed UNIVERSITY OF IDAHO, Dean ed Francis A. Thomson, ex officio direo er tor of the state bureau of mines and geology and secretary of the board of control, and Dr. F. B. Laney, head of the geology department, is at Boise to to attend a meeting of the board. ed "At this meeting the program of th work for the coming two years will ut be discussed," said Dean Thomson. ile "There has been much demand for ss. work in various sections of the state, ow in fact more than can be accomto $30,000 allowed to the bureau. thThe state board of control is composed of Governor D. V. Davis, ex officio chairman; Stewart Campbell, state mine inspector; Jerome J. Day of Wallace, president of the Idaho en- Mining Association; Dean Thomson er and Dr. Laney. All members will be but present with the exception of Mr. ent Day. J. B. Eldridge of Boise, vice of is president of the Idaho Mining Association, will represent the mining association.

12. April 29, 1921 Clearwater Republican Orofino, ID

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OROFINO.-Announcement is made by State Bank Commissioner J. G. Fralick that O. M. Holmberg of Orofino had been appointed receiver of the Fidelity State bank, one of the five institutions of the Waterman group that suspended a short time ago, and will assume charge of its affairs at once,

13. May 5, 1921 The Filer Record Filer, ID

Article from The Filer Record, May 5, 1921

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STATE IN THE GEM has a monthly payroll States of more pubBoise $10,000 in the United lie than health service hospital Ada county plans Meridian. Final musical for festival the in completed. school 5. 6 and 7: have been candiMay Falls. Ralph Louis, ticket, At Idaho on the Citizens date for mayor George W. Eddington by 200 votes. won Progressive over Major candidate for mayor, Idaho recommendation of the to the On the president has sent Virgil W. senators. nomination of gensenate Samms of the Pocatello to be surveyor eral of Idaho. committee report on the spring Falls A recently held. in Idaho hand. festival balance of $92.08 on balance The showed county a fair fund has a on hand of $1,604.64. administration at Fort Hall lauds has The 200,000 acres of grazing price leased reservation at an average much of on-the 15 cents per acre. which is cheaper than last year. from Emmett state that cent 80 of Reports cent of the peach. so per of the per cherries and 25 per cent as prune the erop has been destroyed result of the recent frost. Erminie Manson. wife of Super- Idaho Mrs. E. C. Manson of the died intendent division of the Oregon Short Line, Death at a Pocatello hospital April 25. was due to heart trouble. the past three weeks 490 hogs near In been shipped by farmers of have Firth. The last shipment consisted of 247 hogs, making a total weight $3900. 42,730 pounds. bringing about Depositors in the Fidelity State instiat Orofino, one of the five that bank of the Waterman group 50 have tutions suspended. will receive autout more. cents on the dollar or possibly The governor has signed extradition of for the return to the state Red papers of Jake Taylor. now in theft Idaho Cal. and wanted for the of Bluff. an automobile in Nez Perce county. Jesse R. Budge, Republican attorney. the elected mayor of Pocatello in race elosest was and cleanest mayoralty received seen in the city. He 2038 ever votes. or 208 ahead of Pat Phelau, Democrat. The annual convention of school superintendents will be held this year The Moscow on May 2. 3 and 4. chief at purpose of the conference is the to acquaint the superintendents with new state educational laws. Road signs, designating distance from Nampa through Boise to Moun tain Home, through Caldwell to Parms and New Plymouth besides several the other points, will be put up by Idaho State Automobile association. Three thousand persons attended the ceremonies which marked the opening of the first unit of the Black Canyon thou Irrigation project at Notus. Six will sand acres lying north of the city be reclaimed by the opening of this project. The work of the Western Construct tion company, which has been given the $110,000 contract for the draining in of 10.440 acres of land included what is known as drainage district No. 1 of Canyon county, has been completed and accepted by the directors. The Taxpayers league, which elected mayor April 5. carried Tuesday's city its election in Boise. L. P. Kieldson and John M. Sharp were elected to the vacant council seats, the woman call didate, Miss Ivy M. Wilson, running third. and the old administration's can didate, W. H. Thompson, fourth assessed valuation of $20,988. no bonded capital and and 427.84 An a with combined indebtedness close current of of $314,288.23 at the for the year, is the business surplus condition to the of Shoshone county, according 1920 report of will be asked to Congress financial the auditor. set aside mountain park for the city of Boise for its of to be place a as a playground beauty residents preserved and for future generations. This park is locat ed about a half hour's auto ride from the center of the city, in the mountains north of the city. Golf enthusiasts of Nampa are considering the purchase of the 60-aere tract on the shores at Deer Flat reservoir. that has been offered as a site for the golf course. Arrangements will probably be made to clear off the grounds. " hich at present are covered with sage brush. Representatives from Twin Falls and the coun and men using power try Pocatello irrigation surrounding for have assured Mayor Eugene B. of Bolse that for the meeting of present pumping Sherman they mayors will and be reclamation project men to be held et the capital May 9. Charged with shipping in a carload of of Mer ritt of Salt Lake was at "wine pepsin," arrested George The J. Poes tello by federal officials. ear

14. September 20, 1921 The Daily Star-Mirror Moscow, ID

Article from The Daily Star-Mirror, September 20, 1921

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RENDERS DECISION FOR N. FORK DISTRICT IS IMPORTANT FOR HIGHWAYS DISTRICTS TO CONSIDER A CITATION OF LAWS. Judge Edgar C. Steele has rendered decision in the matter of the insolvency a of the Fidelity State Bank of Orofino as follows: The evidence in this case shows the that on the 8th day of April, 1921, petitioner, the North Fork highway that district deposited in the bank, on prior date, and on subsequent dates, the time the bank failed, the about sum of to about $18,000, and that bank $17,400 was so deposited in the when The it North failed. Fork highway district said has the court to have the depetitioned of money so deposited, amount to be a special deposit and is clared held by the bank, which trust fund to have its claim paid in full prior entitled to the claim of the general creditors. 1910 a statute was enacted by In legislature deciaring that no in pub- any the funds should be deposited deposit, bank lic except upon a special for any heavy penalties and providing official, and for the bank which public received the same, for depositing upon money in any other way than special deposit. case of the State vs. Thum Idaho, In the page 329, the supreme court 6 Idaho held as follows: of 'Now it must necessarily follow no that, the state treasurer having with bank to deosit money authority general deposit, but he being with authon to deposit such money instant a bank orized on special deposit, the received the that C. W Bunting & Co., state treaspublic money from deposit. did so on special urer, it followed by other deThis and was was recently again held cisions, case of the Bank of Nampa, court 29th in the Idaho, page 174, where the t says: legislature has failed to make of 'The provision for the deposit than any district funds other revised Irrigating prohibit by Section 6975 the to subdivision 4, the deposit by any code of such district funds in perf treaurer with any banker or other deposit, bank otherwise or than on special of the son by Givens as treasurer dismade and Meridian irrigation in the the funds of the special Ltd., was a of trict Bank Nampa of of Nampa, district duty and it became the treat deposit, of the bank to the Receiver the property of the irrigation district, such as and the not legislature of the bank. of this state In 1921 a law by which it attempted since enacted the law, as it existed as C to change It passed what was known page 1910. "Bank Act' and is found of at 1921 the the Idaho Session Laws this 42 of as is applicable to reads as th order of payment gl case, and so far follows: of liquidated the debts 'The bank or trust company shall by of a the commissioner hereunder be follows: tha pe as The expenses of liquidation, inve give cluding 1. compensation of agents, employes and attorneys; sh DO Debts due by the bank or fiduci- trust 2. as trustee or other character company other claims of like Fle ing ary, or due depositors, including valid fees paid by of to protest after closing all checks 3. Debts presented them rata; on the he or trust company, pro of every bank of public funds those no deposits or character (except un- wh tes kind placed on special deposit inactually providing therefor), stir Tro ier statutes those of the United county, States, wa cluding of Idaho, and every subdinur the state municipality, political of this The vison istrict, secured corporaton or puble or unsecured cup oth tate, whether whether deposited in violation within of r otherwise, are included and take are aw or of this subdivision, any sha he terms as debts due statma ther of Idaho to the conme he tes same of depositor; the priority state anything in the ontrary notwithstanding. Ten, Article 1 of the United fol- stoc ed live tates Section Constitution provides as floa for "No or ws: state shall enter into any lad will reaty, letters alliance of marue confederation; or reprisal make T rant in money; emit bills and of silver credit; coin a ous nything but debts; pass any of payment gold of facto law, nder in attainder or ex-post of Rev Live ill of impairing the obligation nobil"Mo ntracts, law or grant any title or be S onstitution y.' And Section of 16, the Article State of 1 of Idaho the PIO ovides as follows: bill of attainder, ex -post obligation facto Th "No law impairing the tonv held W, contracts, or shall ever of the be passed. court that It is the legislature, opinion in 1921 which attempt- the Grice between hen to the change the contract the North cow offic FidelPe w ork had highway made district and them the share Octo Bank by making creditors State with the general lien ber tead of giving of the State o rata of the assets them obligation a prior bank, of a of and on all impared the hold Cotto a at it The court could not Hi ntract. herwise, because the supreme in both trou urt of this state has Bank held, of Nam eral that moneys so Thum case and the deposited are sever case there upon special deposit. court will sign proper Th The North Fork the lows aced laring the preference highway papers, in strict to have a claim; and the at- day vment of said their district will prepare me provi team neys of and present them during to The ch papers my signature, 26th. time Orofino for September the a EDGAR term commencing C. STEELE, Judge.

15. September 23, 1921 Clearwater Republican Orofino, ID

Article from Clearwater Republican, September 23, 1921

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HIGHWAY DISTRICT WINS IN COURT Judge Steele Gives Decision in Favor of North Fork Highway District at Moscow, Monday, Sept. 19. (Moscow Star Mirror) Judge Edgar C. Steele has rendered a decision in the matter of the insolvency of the Fidelity State Bank of Orofino asfollows: The evidence in this case shows that on the 8th day of April, 1921, the petitioner, the North Fork highway district deposited in the bank, on that date, and on subsequent dates, prior to the time the bank failed, the sum of about $18,000, and that about $17,400 was so deposited in the bank when it failed. The North Fork highway district has petitioned the court to have the said amount of money so deposited, declared to be a special deposit and trust fund held by the bank, which is entitled to have its claim paid in full prior to the claim of the general creditors. In 1910 a statute was enacted by the legislature declaring that no public funds should be deposited in any bank except upon a special deposit, and providing heavy penalties for any public official, and for the bank which received the same, for depositing money in any other way than upon special deposit. In the case of the State vs. Thum, 6 Idaho, page 329, the supreme court of Idaho held as follows: "Now it must necessarily follow that, the state treasurer having no authority to deposit money with bank on general deposits, but he being authorized to deposit such money with a bank on special deposit, the instant that C. W. Bunting and Co., received public money from the state treasurer, it did so on special deposit." This was followed by other decisions, and was recently again held in the case of the Bank of Nampa, 29th Idaho, page 174, where the court says: "The leislature has failed to make any provision for the deposit of Irrigating district funds other than to prohibit by Section 6975 revised code subdivision 4, the deposit by the treasurer of such district funds in any bank or with any banker or other person otherwise than on special deposit, made by Givens as treasurer of the Nampa and Meridian irrigation district of the funds of the district in the Bank of Nampa, Ltd., was a special deposit, and it became the duty of the Receiver of the bank to treat such as the property of the irrigation district, and not of the bank." In 1921 the legislature of this state enacted a law by which it attempted to change the law, as it existed since 1910. It passed what was known as the "Bank Act" and is found at page 42 of the Idaho Session law of 1921, and so far as is applicable to this case, reads as follows: "The order of payment of the debts of a bank or trust company (Continued on inside page.)