Madison State Bank (Virginia City, MT)

Article Text

REPORT RECEIVED REGARDING STATE'S BANK CONDITIONS

(Staff Correspondence.) Helena, Jan. 24.—In compliance with a request made by the house after the adoption of a resolution by Burke of Fergus, asking for a detailed report on banking conditions in Montana, L. Q. Skelton, state bank examiner, today submitted such a report. The examiner's report shows that on Jan. 1, 1923, there were 259 incorporated state banks and seven private banks. During the year 1922, 22 state banks failed and closed their doors. Two of these banks have since reopened. His report also shows that the time of examination of banks before their failure ranged from 13 days to nine months and 29 days. The report in detail follows:

State Banks Closed During Year 1922. Drummond State bank, Drummond, closed Jan. 16, 1922, reopened June 12, 1922; date last examined prior to closing, August 10, 1921.

Treasure State bank, Hysham, now in hands department, closed Jan. 13, 1922; date last examined prior to closing, July 21, 1921.

Milk River Valley bank, Glasgow, closed Jan. 18, 1922, reopened August 1, 1922; date last examined prior to closing, Jan. 5, 1922.

Yellowstone Valley Bank & Trust Co., Sidney (receiver bank), closed March 22, 1922; date last examined prior to closing, March 6, 1922.

State Bank, Stockett (receiver bank), closed April 3, 1922; date last examined prior to closing, Nov. 1, 1921.

Bank of Twin Bridges (receiver bank), closed May 2, 1922; date last examined prior to closing, Feb. 1, 1922.

Madison State, Virginia City (receiver bank), closed May 2, 1922; date last

Article Text

Miller Smith, executors, against the city of Helena.

The court reversed the district court of Madison county in the case of the state of Montana on the relation of the attorney general against the Madison State bank of Virginia City.

In the Madison county court, from which the case was appealed, the Fidelity and Deposit company of Maryland petitioned for an order directing the receiver of the defunct Madison State bank to allow as a preferred claim out of the assets of the closed bank a claim for $2,462.75, the amount paid by the indemnity company to the state as reimbursement for state funds deposited in the bank. On March 11, 1922 the petitioner executed an indemnity bond to secure deposits of state funds in the Virginia City bank in the sum of $2,450. When the bank failed the indemnity company paid over the sum of the bond to the state and presented its claim to the receiver of the bank. The receiver declined to honor it as a preferred claim and the court in Madison county upheld his ruling that the claim was a general and not a preferred one. The indemnity company appealed.

Article Text

Surety Firm Wins Out in Bank Claim Appeal

Helena, Sept. 26.—(By The Associated Press.)—The Montana supreme court Wednesday reversed the district court of Madison county in the case of the state of Montana, on the relation of the attorney general, against the Madison State bank of Virginia City.

In the Madison county court, from which the case was appealed, the Fidelity and Deposit company of Maryland petitioned for an order directing the receiver of the defunct Madison State bank to allow as a preferred claim out of the assets of the closed bank, a claim for $2,462.75, the amount paid by the indemnity company to the state as reimbursement for state funds deposited in the bank.

On March 11, 1922, the petitioner executed an indemnity bond to secure deposits of state funds in the Virginia City bank in the sum of $2,450. When the bank failed the indemnity company paid over the sum of the bond to the state and presented its claim to the receiver of the bank. The receiver declined to honor it as a preferred claim and the court in Madison county upheld his ruling that the claim was a general and not a preferred one. The indemnity company appealed.

Article Text

By the Associated Press. Helena, Sept. 26.—Claims of indemnity companies for money expended to guarantee deposits of counties in defunct banks are preferred claims, the state supreme court held today in reversing the Madison county court in the case of the state against the Madison State bank of Virginia City.

In the Madison county court, from which the case was appealed, the Fidelity and Deposit company of Maryland petitioned for an order directing the receiver of the defunct Madison State bank to allow as a preferred claim out of the assets of the closed bank a claim for $2,462.75, the amount paid by the indemnity company to the state as reimbursement for state funds deposited in the bank. On March 11, 1922 the petitioner executed an indemnity bond to secure deposits of state funds in the Virginia City bank in the sum of $2,450. When the bank failed the indemnity company paid over the sum of the bond to the state and presented its claim to the receiver of the bank. The receiver declined to honor it as a preferred claim and the court in Madison county upheld his ruling that the claim was a general and not a preferred one. The indemnity company appealed.

Article Text

STATE SUPREME COURT RENDERS OPINIONS IN CASES ON APPEAL

Helena, Sept. 26.—The way was opened for the beginning of the work of repaving Main street and paving Neill avenue in Helena when the state supreme court Wednesday affirmed the lower court's order in the case of Jesse C. Ricker and J. Miller Smith, executors, against the city of Helena.

In the Lewis and Clark district court the plaintiffs were denied an injunction restraining the defendants from proceeding with the creation of Main street—Neill avenue improvement district officially known as special improvement district No. 139. The project involved the paving of certain streets around the parks near the Great Northern depot. An injunction was asked on the contention that the city council authorized the creation of the district after wrongfully finding that protests of property owners were insufficient. The petitioners maintained that the council illegally included in the district ground dedicated as parks totalling 34,125 square feet and not subject to assessment for the payment of costs of an improvement district. They averred that when the area of the land thus exempt from assessment should have been excluded there would remain subject to assessment 138,660.85 square feet and that property owned by protesting property owners totalled 62,618.25 an area in excess of 40 per cent.

The petitioners also contended that Main street being already paved, the owners of property in the district would not be equally and alike benefited by paving on Neill avenue and that creation of the district was in effect taking property from the plaintiff for public use without just compensation.

The petitioners asked that the council's action in creating the improvement district be declared null and void, that the contract with F. Burch & Sons be declared void and that a permanent injunction be granted to prevent further proceedings in the project.

Judge Stanley E. Felt heard the proceedings and denied the request of the plaintiff upholding the legality of the improvement district.

The City of Helena denied that protests embraced an area of 40 per cent of the total area of the improvement district and set forth that the city was willing to pay the costs of the assessment against the ground dedicated for park purposes out of the general park funds.

MISSOULA COUNTY COURT DECISION IS AFFIRMED

An opinion affirming the judgment of the Missoula county district court in the case of Arthur G. Davis against George Freisheimer was delivered by the supreme court Wednesday.

Judgment in the Missoula county district court was for $5,000 in favor of the plaintiff. Davis was employed by defendant at his drug store at 118 North Higgins avenue, Missoula. He alleged that he sustained injuries which would incapacitate him for at least a year by falling into an elevator shaft in the building. He charged negligence on the part of Freisheimer in not lighting the corner of the building in which the elevator was located; that the defendant was negligent in not providing the elevator shaft with a gate or chain; in not having a lock on the elevator to keep it from creeping up four or five feet and in not warning his employes of the dangerous nature of the elevator. He asked $7,000 as compensation for his injuries and suffering, $451 for surgeon's and nurses' fees and $1,500 for loss of a year's earning as a manual laborer. In the accident he alleged he sustained a broken wrist, disjointed ankle, broken collar bone and numerous bruises.

MADISON STATE BANK CASE IS REVERSED

The supreme court reversed the district court of Madison county in the case of state of Montana on the relation of the attorney general against the Madison State bank of Virginia City.

In the Madison county court, from which the case was appealed, the Fidelity & Deposit company of Maryland petitioned for an order directing the receiver of the defunct Madison State bank to allow as a preferred claim out of the assets of the closed bank a claim for $2,462.75 the amount paid by the indemnity company to the state as reimbursement for state funds deposited in the bank. On March 11, 1922, the petitioner executed an indemnity bond to secure deposits of state funds in the Virginia City bank in the sum of $2,450. When the bank failed the indemnity company paid over the sum of the bond to the state and presented its claim to the receiver of the bank. The receiver declined to honor it as a preferred claim and the court in Madison county upheld his ruling that the claim was a general and not a preferred one. The indemnity company appealed.

Article Text

COUNTY'S CASH IS PREFERRED CLAIM

SUPREME COURT RULING HOLDS PUBLIC MONEY MUST COME OUT OF FAILED BANKS FIRST.

Judgment of the Madison county court in the case of the state of Montana on the relation of the attorney general against the Madison State bank of Virginia City was reversed by the Montana supreme court Wednesday. The lower court had held that the claim of the Fidelity and Deposit company of Maryland against the defunct state bank for reimbursement of the bond paid by the bank to the county to guarantee the county's deposit was not a preferred claim, but the higher court declares that law in Montana "and the weight of law" in all but the three states of the Union is that such a claim has preferred rights.

In the lower court the fidelity and deposit company petitioned for an order directing the receiver of the defunct bank to allow as a preferred claim out of the assets of the closed bank a claim for $2,462.75, the amount paid by the indemnity company to the state as a reimbursement for state funds deposited in the bank.

On March 11, 1922, the petitioner executed an indemnity bond to secure deposits of state funds in the Virginia City bank in the sum of $2,450. When the bank failed the indemnity company paid over the sum of the bond to the state and presented its claim to the receiver of the bank.

The receiver declined to honor it as a preferred claim and the court in Madison county upheld his ruling that the claim was a general and not a preferred one. The indemnity company appealed.

Article Text

COUNTY'S CASH IS PREFERRED CLAIM

Supreme Court Ruling Holds Public Money Must Come Out Of Failed Banks First.

Judgement of the Madison county court in the case of the state of Montana on the relation of the attorney general against the Madison State bank of Virginia City was reversed by the Montana supreme court Wednesday. The lower court had held that the claim of the Fidelity and Deposit company of Maryland against the defunct state bank for reimbursement of the bond paid by the bank to the county to guarantee the county's deposit was not a preferred claim, but the higher court declares that law in Montana "and the weight of law" in all but the three states of the Union is that such a claim has preferred rights.

In the lower court the fidelity and deposit company petitioned for an order directing the receiver of the defunct bank to allow as a preferred claim out of the assets of the closed bank a claim for $2,462.75, the amount paid by the indemnity company to the state as a reimbursement for state funds deposited in the bank.

On March 11, 1922, the petitioner executed an indemnity bond to secure deposits of state funds in the Virginia City bank in the sum of $2,450. When the bank failed the indemnity company paid over the sum of the bond to the state and presented its claim to the receiver of the bank.

The receiver declined to honor it as a preferred claim and the court in Madison county upheld his ruling that the claim was a general and not preferred one. The indemnity company appealed.

Article Text

BANK RECEIVER RESIGNS HIS JOB

Edgar P. Reid of Virginia City New Man in Charge of Madison Banks.

P. B. McClintock, as receiver of the Madison State bank and also as receiver of the Bank of Twin Bridges, Madison county, this morning sent in letter tendering his resignation as receiver of both institutions on the ground that he had accepted other employment. The resignations of Mr. McClintock in both banks were accepted by Judge William E. Carroll and he named Edgar P. Reid of Virginia City to fill the two vacancies Mr. Reid is an attorney of Virginia City and was formerly county attorney of Madison county Mr. McClintock in his letter of resignation as receiver of the Madison State bank says: "During my receivership there has been collected. From good assets, $79,506.58; from doubtful as. sets, $12,980.68; from worthless assets, $19,488.92, and from assessment of stockholders, $6,000, total of $117 927.13. There has been disbursed: For cancellation of liabilities $68,076.06, including a preferred claim of the state of Montana of $2,520. 45 and preferred claim of the city of Virginia, of $862.01, and payments to the following banks through collections on notes held by them as collateral: War Finance corporation, $30,238.55; National Bank of Montana, $14,362.30; Metals Bank and Trust company, $18,598.75; W. A. Clark & Bros., $1,500; for protection of assets, $236.67; dividends, $19,803.41; legal expenses. $3,439.30; receiver's salary, $6,708.33; taxes. $1,776.74; all other expenses, $2,458.93, making total of disbursement of $102,499.4 leaving a balance of cash on hand of $15,427.65 "After deducting offsets allowed on assets and losses charged off, there remains on hand the following assets: Good assets, $39 526.31; doubtful, $29,602.26; worthless, $121,913.82, making a total of assets on hand of $191,042.39, and from which It is estimated that there will be further collections of approximately $34 838.51. In regard to the Bank of Twin Bridges, Mr. McClintock says: "During my receivership there has been collected: From good assets. $213,114.15; from doubtful assets, $21,616.52; from worthless, $8,853.21; from assessment of stockholders, $6,000; from trustee for owner, $165.52, a total of $249,749.50. There has been disbursed. For cancellation of liabilities, $208,440. including of a preferred claim to the state of Montana of $9 605. a preferred claim to the State Orphans home, 276.11, and payments to the following banks through collections on notes held by them as collateral: War Finance corporation, $113,968.93; American National Bank of Helena, $2,802.17; W. A. Clark & Bros., $15,960.81; National Bank of Helena, $16,541.27; Metals Bank and Trust company, $15,483.79; Chase National Bank of New York, $1 522.19; for protection of assets, $3 650.14; legal expenses, $7,632.63; for receiver's salary, $8,625; for taxes, $3,162.66; for all other expenses, $6 $44.56, making total disbursement of $237,855.43, and leaving a balance of $11,894.07. "After deducting offsets allowed on assets and losses charged off there remain on hand the following assets: Good $118,560.74; doubtful $89,863.63; worthless, $133,640.17, making a total of assets on hand, $341,564.54, and from which it is estimated that there will be further collections of approximately $25 000 that are now in litigation.'

Article Text

CARROLL DIRECTS DISTRIBUTION TO BE MADE AT ONCE

About $28,000 to Be Paid by Madison State Bank and Bank of Twin Bridges.

Immediate payment of dividends to depositors in the Bank of Twin Bridges and the Madison State bank at Virginia City was ordered yesterday by Judge William E. Carroll, following conference with Edward P. Reid, receiver. Both banks were closed some time ago. Depositors of the Bank of Twin Bridges will be paid dividend of five per cent while those of the Virginia City bank will receive a dividend of eight per cent. About will be paid to depositors of the Virginia City bank and $12,000 will be paid in dividends to depositors in the Bank of Twin Bridges. to At the same time the dividend was declared E. P. Reid announced his resignation as receiver of the two institutions. The court appointed P. B. McClintock of Twin Bridges receiver of the Bank of Twin Bridges and Clifford Albright, of Virginia City, receiver the Madison State bank. Each will receive salary of $100 per month. Both men will qualify as receivers by filing bonds within the next few Mr. Reid surrendered his post because he is moving from Madison county. He is former county attorney of Madison and is throughout that section of Montana. He made no announcement of his plans for the future.

Article Text

BANK WILL PAY DIVIDENDS

EDGAR REID, RECEIVER, RESIGNS: McCLINTOCK AND ALBRIGHT ARE APPOINTED

Following conference Friday with E. Reid, receiver, Judge E. Carroll of Butte ordered the immediate dividends to depositors in the Bank of Twin Bridges and the Madison State bank of Virginia City, each of which has been closed for more than two years. A dividend of five cent will be paid to depositors the Twin Bridges bank, and those of the Madison State bank are to receive eight per cent. total of about in dividends will be paid to the Virginia City bank depositors and $12,000 to those who had their earnings in the Twin Bridges concern E. P. Reid tendered his resignation as for the two banks, stating that he plans to remove from the County the near future Mr. Reid known in Madison county, having been, one time, county attorney. He has, as yet, announced no definite plans for the future. Appoints New Receivors Clifford Albright of Virginia City was appointed receiver of the Madison State bank to fill the vacancy left by Mr. Reid, while McClintock of Twin Bridges was appointed to act in the same capafor the Bank of Twin Bridges. Each receiver will be paid salary of 8100 per month.

Whatever became of the ioned girl who, at this time of year, dresser drawer full of doilies fancy work prepared for Christmas giving?

Christmas savings funds enough to pick.