First National Bank (Minneapolis, MN)

Episode Information

Episode Type
Suspension โ†’ Closure
Start Date
December 27, 1904
Location
Minneapolis, Minnesota (44.980, -93.264)
Bank Type
national
Charter Number
710
Alt. names
First & Security National Bank; First National Bank & Trust Company

Metadata

Events (4)

1. January 12, 1865 Chartered
Source
historical_nic
2. December 27, 1904 Other
Newspaper Excerpt
The City National and First National banks recovered all their goods, together with about $90,000 in cash, and have reopened for business in new quarters.
Source
newspapers
3. February 13, 1905 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank in 'desperate straits'; disposed of its discount paper and had a receiver appointed
Newspaper Excerpt
When the bank suspended the note makers approached the receiver with the request that their deposits be regarded as an offset against their notes and then learned for the first time that the notes had been disposed of
Source
newspapers
4. February 13, 1905 Receivership
Newspaper Excerpt
When the bank suspended the note makers approached the receiver ... and then learned for the first time that the notes had been disposed of, and that deposits made could not apply upon them.
Source
newspapers

Newspaper Articles (2)

Article from The Minneapolis Journal, December 27, 1904

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Article Text

FIRE WRECKAGE DEEP IN SNOW Sioux City's Streets Still Blocked -Heroism of Two Saved Heavier Loss. Special to The Journal. Sioux City, Iowa, Dec. 27.-Driven by a relentless forty-mile gale from the northwest a blizzard raged here all night. The snow was preceded by sleet which coated the streets and made traveling and street car traffic very difficult. The ice also put most of the telegraph and telephone wires out of commission. A 7-below-zero temperature was hammered into the air this forenoon by the wind and it is as bad a blizzard as the city has had for five years. The storm stopped suddenly the work of removing the ruins of last Friday's fire, and, altho three days have passed, five streets are yet blocked, street cars being compelled to run on irregular routes. Yesterday was devoted to recovering safes, nearly all of which were found to contain well-preserved books and money. The City National and First National banks recovered all their goods, together with about $90,000 in cash, and have reopened for business in new quarters. The walls of the seven-story Toy building were pulled down by ropes at 6 o'clock last evening, filling fourth street with great heaps of debris which will require days for removal. It was Minneapolis' disastrous experience with fire walls that induced Mayor Sears to take immediate steps to have all walls torn down at once. The most remarkable story of heroism in Friday night's fire was made public only today and as a result a subscription paper is being circulated for Gus Berg, a fireman, and Addis Bell, an elevator boy. The two dragged a hose to the roof of the seven-story Metropolitan block when its outside woodwork had been ignited. One sat on the other's legs for two hours so the hose could be held out and the front drenched. This alone saved the block from burning, which would have carried the fire across Fourth street and probably doubled the loss.


Article from The Minneapolis Journal, February 13, 1905

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Article Text

itors nor stockholders will lose a farthing. Raises Legal Question. An interesting legal question has been raised with regard to certain notes now held by Judge Buckham, which were discounted at the First National bank. It appears that about a year ago Mr. Clement approached Judge Buckham, and representing to him that the bank had several perfectly good notes that for one reason or another it was not in a position to carry induced him to purchase them. Some of these notes were made by depositors who recently in expectation of their maturing had been accumulating money with which to pay them and putting it in the bank, supposing it still held them. When the bank suspended the note makers approached the receiver with the request that their deposits be regarded as an offset against their notes and then learned for the first time that the notes had been disposed of, and that deposits made could not apply upon them. Is Director an Innocent Holder? The paper is, of course, negotiable, and the bank had an undoubted right to sell it, and it is not questioned that it would be collectable in the hands of a third person not connected with the bank. But whether a director under the circumstances can be considered an innocent holder is the question that is now raised. It is argued that the mere fact that the president of the bank attempted to dispose of paper held by it and which was its principal source of income should have been a warning to the director and that it should at least have sufficiently aroused his suspicions to induce him to make such an investigation as could not have failed to reveal the fact that the bank was in desperate straits. It is further argued that where a director fails to direct the affairs of the bank he should not be permitted to profit from his own negligence, and that notwithstanding the fact that Judge Buckham paid the full value of the notes they must still be held to be in possession of the bank at least to such S an extent that any deposits held by the bank must be regarded as an offset to them. Holding this view it is stated that makers of notes now in the hands of Judge Buckham will refuse to pay them unless they are credited on them with the amount of their deposits in the suspended bank. e Resigns a Trusteeship. p Mr. Clement has resigned the trusteeship of the Polar Star Electric company. At the suggestion of the president of e the First National ban of Minneapolis, which holds the company's bonds to the par value of $29,000, the Minnesota d Loan & Trust company has been named as Mr. Clement's successor. L-