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One National Bank in Montana Has Suspended HELENA, Mont., Dec. 11. - The First National Bank of Ferguson County, at Lewiston, Montana, failed to open its doors today. It is asserted the liabilities are nearly $1,000,000.
First National Bank (Lewiston, MT)
Episode Information
- Episode UID
727401488- Episode Type
- Run โ Suspension โ Closure
- Bank Type
- national
- Bank ID
-
72740national - Charter Number
- 7274
- Start Date
- December 8, 1923
- Location
- Lewiston, Montana (46.464, -111.986)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
f6c4dd5040380c1b
Response Measures
Full suspension, Books examined
Other: Directors executed large indemnity bonds to insure county and city deposits and withdrew $755,000 in securities from general assets to protect those deposits (preferential transfer of assets); bank then closed and later went into receivership with receiver distributing a dividend.
Receivership Details
- Depositor recovery rate
- 50.1%
- Date receivership started
- 1924-04-12
- Date receivership terminated
- 1936-05-27
- OCC cause of failure
- Governance
- Share of assets assessed as good
- 31.9%
- Share of assets assessed as doubtful
- 50.0%
- Share of assets assessed as worthless
- 18.1%
Description
Suspension on Dec. 10, 1923 followed a depositor run; bank remained closed with a receiver and later dividend distributions.
Events (6)
1.
May 27, 1904
Chartered
- Source
- historical_nic
2.
December 8, 1923
Run
- Cause
- Local Banks
- Cause Details
- A run by a large crowd triggered after failures of several small town state banks closely allied with the First National.
- Measures
- None reported; heavy withdrawals preceded closure.
- Newspaper Excerpt
- went to the wall ... as the result of a run last Saturday by a huge crowd of frightened depositors, who made a mad rush
- Source
- newspapers
3.
December 10, 1923
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Bank failed to open after heavy withdrawals and was insolvent (liabilities reported nearly $1,000,000) following the run and prior unsound condition.
- Newspaper Excerpt
- The First National Bank of Ferguson County, at Lewiston, Montana, failed to open its doors today.
- Source
- newspapers
4.
April 12, 1924
Receivership
- Source
- historical_nic
5.
November 27, 1925
Other
- Newspaper Excerpt
- Judge Pray authorized ... receiver of the First National bank of Fergus county, Lewistown, to dividend to the bank's creditors nearly $1,000,000.
- Source
- newspapers
6.
*
Receivership
- Newspaper Excerpt
- F. D. Williams, receiver of the First National bank of Lewistown ... authorized to distribute a dividend to the bank's creditors that will approximate $1,000,000.
- Source
- newspapers
Newspaper Articles (19)
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WIDESPREAD MISERY RESULT OF CRASH Special to Producers News. DON'T PITY THE Lewistown, Dec. 10.-The First NaPOOR FARMER! tional Bank of Fergus County, the largest banking concern in central and eastern Montana went to the wall These Raised Horses Instead of Pole last Menday morning as the result of Cats, and Sold Them for $1.07 Per a run last Saturday by a huge crowd Head. of frightened depositors, who made a mad rush to get their money upon the Forsyth.-Ranchers in the vicinity failure of several small town State of Rosebud who have been shipping banks in Fergus county during the range horses to eastern markets reweek, which banks are the property of port receiving very lew prices for the First National Bank of Lewis their stock. One man who shipped a county. carload of 29 horses to a Nebraska $300,000 CAPITAL market received a check for $31.03 The First National Bank of Fergus for the carload of $1.07 per head County has a capital stock of $300,net. Other shippers of smaller un000, and a surplus of $100,000: it has broken horses did not get enough for deposits in the sum of $5,000,000 and them to pay the freight. The only was the principal bank of deposit in local buyers for this class of horses Central Montana and was a discount are the hog feeders, who are paying bank for several smaller banks in around $2.00 per head. Fergus county, all of which have reThe demand for small horses is a cently failed. thing of the past and there are thousFIRST COPPER BANK TO FAIL ands of these worthless animals on The Lewistown Bank is the first the ranges in Rosebud county. Stockbank known in the state as a "Copmen and farmers are putting forth bank to fail, and is the largest every effort to dispose of them as banking institution in the state to they are consuming the feed that succumb in the impending financial could be utilized in the production of and economic wave that is engulfing more beef. wool and mutton. the nation. DEPOSITORS DISAPPOINTED The first heavy withdrawals from the bank occurred Saturday and the NELS MOE KNOCKS news of the condition of the bank spread after the bank closed. Saturday and all day Sunday and Monday OUT STEVE O'BRIEN morning a long line of depositors waited for the opening of the bank Coming Young Pug Floors Hug to withdraw their deposits, when one Irishman in Second Round-Figh of the employes appeared in the door Sensational While it Lasted. and posted from the inside the notice to the effect that the bank had been closed by orders of the Board of DiHoldfast Sask., Dec. 23.-Before ร rectors. The crowd was excited, packed house at Holdfast, Sask., O some were crying, while others were Saturday night, December 8th, Nel cursing. Many lost the saving of a Moe knocked out Steve O'Brien in life time, and it is understood that the second round of a ten round sched the bank will never be able to pay ule. O'Brien took the county of eigh out but a small fraction of the dein the first round. The match wa posits, the bank having taken huge fast and furious while it lasted losses as a result of deflation and the O'Brien stands six feet six and weigh agricultural wreck of the past couple over 200 pounds and has a reach o of years the result of the deflation 82 inches while Moe stands 5 feet 1 policy of the Federal Reserve Bank. inches and weighs 174 pounds with BELDEN RUINED reach of 78 1/2 inches. It was a cas 0. W. Belden, prominent in bankof speed and science against size ing and financial circles of the state, weight and strength. reported as ruined, as is also, W. L. Johnson, president of the bank, who T. U. MEETING has been considered one of the leading bankers of the state for many years. The W. C. T. U. met in its regula Among the other officers of the monthly meeting at the 8th grad bank are Rep. T. T. Taylor of Ferbuilding Tusday evening at 8 o'clocl county, who did yoeman service Mrs. E. T. Mitchell, the Evangelisti the legislature last winter in beSuperintendent led the meeting. Ro of the banking fraternity. call was responded to by giving som OTHER BANKS FAIL current event concerning Prohibition On Tuesday, following the failure Miss Isabel Malcolm read an inter the Lewiston bank, the State Bank esting paper on "The Significance ( of Moore and the First National Bank the "C" in W. C. T. U. and Mrs. C. C of Moore both were closed as a result Christianson gave a well prepare of the wreck and State Bank of Ray in paper on "Prayer and Faith-the Ke eastern part of the county also closed. note of Success." Come to the All of these banks were closely allied o meetings every second Tuesday with the First National of Lewiston. each month that the forces of goo Practically all of the small town may be as weil organized and a.tiv as the forces of evil. (Continued on Page Four)
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(Continued from page 1) banks in Fergus county are now closed. EMPIRE BANK STANDS UP The Empire & State Bank was able to stand the run Monday. A long line of depositors withdrew their money and another line was depositing. This depositing line was a stage play line thought to have been arranged for by the bank to inspire confidence in the panic strickened depositors-depositors withdrew about $15,000. Monday the withdrawal continued but so far the bank has been able to weather the storm BANK LONG A "LAME DUCK" The First National Bank of Lewistown has been known as a "lame duck" for several months. In the middle of the summer the bank had a desperate time to keep open and at one time several National Bank Examiners were there at once, but the bank was able to ride until after the harvest mcney had been deposited. The bank had been the bank of deposit of the Montana Wheat Growers Association up until very recently. PEDDLE "OLD BUNK." The officers of the defunct bank and the "copper paper" are peddling the usual bunk about reorganization and new money available soon. And that all deposits will be paid in full, etc.
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NOTICE OF SHERIFF'S SALE. W. H Elmer plaintiff. Albert S. Francis and Jennie Francis his wife: The First National Bank of Fergus Countv. corporation. and F D Williams Receiver thereof William Samuel Jennings The National Bank of Moore, thereof Capital Trust and Savings Bank. a corporation Atwood Larson Company,a corporation. and Stephen Thelan. To defendants. he sold at Sheriff's sale on Saturday. the 14th day of February. A. D. 1925. at two o'glock n. na. of that day, at the front door of be Court House in the City of Lewistown. County of Fergus. State of Montara the following de scribed property. situated in Fergus The southw ouarter of the northwest quarter (SW% NW of section three (3); lot one (1) and the south half of the four (4): he southeast quarter (SEV) lots 'WO (2) and three (3) the southeast nearof section five (5). all in township thir teen (13) north. of range seventeen (17) the southerst ourster of the southwest quarter (SEM swy). and the south half section thirty two (32). in township four teen (14) north of sange seventeen 17) east of the Montana Meridian in Montana, ing the Government survey thereof: excenting from the aforesaid described property the following piece or pareel of land. Beginning at the southwest corres of (3). in township thirteen (13) north of or less Dated this 19th D day of January cry. Sheriff, attorney for plaintiff.
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SUES BANK RECEIVER Lewistown, March Law has brought suit against Williams, receiver of the First National bank, to have deposit of $8,000 declared claim and ordered applied to the plaintiff's note for $8,000. Mr. Law alleges that when he deposited the sum, just before the bank closed, it was for purpose having applied to the note and that should have been put in trust fund.
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SUIT AGAINST BANK RECEIVER IS DISMISSED Decree of dismissal in the sult of William Gockstetter against Fred D. Williams as receiver of the First National bank of Lewistown was entered in United States district court here late yesterday afternoon by Judge Charles N. Pray The suit was filed June 18 of this year. Wellington D. Rankin, Frank Woody and S. C. Ford were attorneys for the plaintiff and E. K Cheadle and T. B. Weir for the defendant. Costs of action are ordered paid by the defendant In the suit Gockstetter alleged that the order by which the court authorized the sale, disposal or transfer of property and assets of the First National bank was "made by said court without and in excess of its jurisdiction.'
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Judge Pray Orders Lewistown Bank Receiver to Pay Above Amount. By the Associated Press FALLS, Nov. Judge Charles N. Pray yesterday authorized F. D. Williams, receiver of the First National bank of Fergus county, Lewistown, to dividend to the bank's that mate $1,000,000. Final authority to pay the dividend and the exact amount will be announced by the comptroller of the currency. the court's order issued today being necessary preliminary to action by that official. Plans have been under way with the for several to pay 30 per cent dividend, but of that figure by the comptroller will be necessary before official ment made. At the time of its closing two years ago the bank's liabilities exceeded $3,000,000. Judge Pray's order provides for transfer by the bank to Fergus county and municipality of Lewistown certain real estate in lieu of their share of the cash dividend. The county's claim against the bank is $698,961. and the court authorizes the to transfer to the county nine parcels of real at total valuation of 30 per cent of the claim, in lieu of cash. The properties are listed as having total nominal value of $361,384. similar arrangement between the bank and city of Lewistown also is Instead of 30-per cent cash dividend on its claim of $72,000 the city will receive real estate valued in the court's order at $15,000. GIRL IN BOMB GANG. By the Nov. and girl were captured and man was thought to have killed early today scores ambushed gang just as they ploded which hardware store. McClellan. Columbus. Ohio. Fred Walmquiet and Joseph Aveng
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CLOSED BANK IS TO PAY FAT DIVIDEND MILLION DOLLARS WILL GO TO DEPOSITORS. Falls.-Federal Great Judge Charles N. Pray today authorized F. D. Williams, receiver of the First National bank, of Fergus county, Lewistown, to distribute a dividend to the bank's creditors that will approximate $1,000,000. Final authority to pay the dividend and the exact amount will be announced by the comptroller of the currency, the court's order issued today being a necessary preliminary to action by that official. Plans have been under way with the receiver for several months to pay a 30 per cent dividend but approval of that figure by the comptroller will be necessary before official announcement can be made. At the time of its closing two years ago, the bank's liabilities exceeded $3,000,000. To Transfer Realty. Judge Pray's order provides for transfer by the bank to Fergus county and the municipality of Lewistown certain real estate in lieu of their share of the cash dividend. A. similar arrangement between the bank and the city of Lewistown also is authorized.
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BANK AUTHORIZED TO PAY DIVIDEND GREAT FALLS, Mont.- Federal Judge Charles N. Pray has authorized F. D. Williams, receiver of the First National Bank of Fergus county, Lewistown, to distribute a dividend to the bank's creditors that will approach $1,000,000. Final authority to pay the dividend and the exact amount will be announced by the comptroller, the order issued being a necessary preliminary to action by that official. Plans have been under way with the receiver for several months to pay a thirty per cent dividend but approval of that figure by the comptroller will be necessary before announcement can be made. The bank's liabilities exceeded $3,000,000.
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STATE BRIEFS In the Red Cross roll call conducted by the Cascade county chapter from Armistice Day until Thanksgiving, a total of $1604.30 was raised in Great Falls. Representatives of four electric power companies have been negotiating with former Senator Fishbeck, with a view of purchasing Plentywood. the electric light system in Erection of a community chapel will be started by the Great Falls West Side Methodist church as soon as the funds are available. it has been announced by the pastor, the Rev. H. B. Ricketts. Appointment of E. C. Longnecker and J. T. Boyd, as members of the Great Falls police commission for three and two-year terms, repectively, were unanimously ratified at a meeting of the Great Falls city council. Mrs. Esther Crabtree of Fort Shaw, died at Great Falls the other day from injuries received in a automobile accident, which occurred near Fort Shaw. Her husband was killed 10 years ago in a race track accident. Forest Carter, formerly superintendent of Platt national park of Oklahoma, arrived at Glacier Park headquarters the other day to replace James P. Brooks, who resigned his position as assistant superintendent September 1. ยซยป Miss Eleanor Kurth of Portland, Ore., has been appointed supervisor of music in the Great Falls public schools to succeed Miss Lena M. Spoor, who resigned in October to accept a supervisory position at Mary's Institute at St. Louis, Mo. 3 (b) ยฉ A heavy flow of gas has been struck in a water well being drilled on the F. D. S. ranch. located virtually in the center of the old townsite of Medicine Lake. The first gas was found at 80 feet and a much stronger flow was reached at 160 feet. ยฉ ยฉ Members of the program committee for the Montana Federation of Women's clubs have set the dates of the state convention to be held in Livingston, as Oct. 13, 14 and 15, 1926. The committee outlined the program as far as possible at this time. D At a meeting of the Libby Rod and Gun club, attended by 25 members. it was decided to assess the membership 50 cents each to provide funds with which to pay expences, the organization's other funds having been tied up by the bank suspension at Libby. @ The Peterson brothers, who are active in the management of the Peterson Mercantile company at Shelby announce that they are quitting business at Shelby that they may enter the same line on the new railway that is now being extended west from Scobey, and where they have other interests. Announcement is made by the forest service of the appointment of Joseph M. Dixon of Missoula, former governor of the state, as state chairman of the American forest week committee for Montana. He succeeds Kenneth Ross, who has held the position for several years, but who has retired from the lumber industry. ยฎ Bullets from the pistol of James B. O'Flynn, undersheriff. tore three tires from a liquor-laden truck before a fivemile race through Great Falls streets ended, and the driver, who turned the truck sharply blocked the officers' car and escaped into an alley, abandoning 38 sacks of Canadian beer and a sack of whisky. D Forty stands of bees have been lately imported into Phillips county by bee enthusiasts in the vicinity of Malta. B. F. Schuster recently purchased from Sherman McQueen of Fraser 40 stands, which have been resold as follows: Clarence Misfeit, 20; Jack Lange, four; Milton Porter, two; Fred Hall, one; John Survant, two; Ernest Chabot, one, and Mr. Schuster kept the remainder. Paragraph 27 of the will of the late Senator W. A. Slark of Butte, is null and void, inasmuch as it conflicts with the Montana code of 1921. So announced Judge J. J. Lynch of the district court in dismissing a petition of executors and executrices of the state for appointment of James M. McDonald of New York as executor in place of Mrs. Annie E. Clark, the widow, resigned. Payment of a dividend that will approximate $1,000,000 to the creditors of the defunct First National bank of Fergus county, Lewistown, has been authorized in the Great Falls federal court by Judge Charles N. Pray. Final authority to pay the dividend and the exact amount will be announced by the comptroller of the currency, the court's order being a necessary preliminary to action by that official. D With the distant success which attended the first rodeo sponsored, still a fresh memory, the Great Falls Advertising club has under way a well organized program for the staging of an even greater show in 1926. Plans now being worked out by the
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Depositors to Get Only One-Third from Bank That Failed GREAT FALLS, Montana, Dec. 9. -Federal Judge Charles N. Pray, authorized F. D. Williams, receiver of the First National Bank of Lewistown in Fergus county to pay a dividend to the depositors that will reach $1,000,000. Plans have been under way for several months to pay a 30 per cent dividend to the creditors. Final authority to pay the dividend and the exact amount will be announced by the comptroller of the currency. At the time this bank closed its doors two years ago its liabilities amounted to over $3,000,000.
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DEFUNCT BANK PAYS. LEWISTOWN.- - Two years after the First National Bank of Fergus County closed its doors, announcement is made that the receiver has on hands checks to pay its 3,200 depositors a dividend of 30 per cent, the total aggregating nearly $1,000,000.
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Bank Pays Dividends Receiver F. D. Williams of the First National bank of Lewistown is now sending out checks to the 3,200 depositors of the Institution. The checks represent a dividend of 30 per cent upon the deposits and the total is nearly $1,000,000. The bank closed two years ago and the payment of this Mividend made Christmas one of the brightest Lewistown has known In some years,
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Great directors of the First National bank of Fergus county resolufrom the general assets of the bank in securIties acted illegally and fraudulently their sureties given to indemnify Fergus county city of Lewistown against loss deposits, and for the further that the directors had been informed by the comptroller of that the bank sound Williams receiver of bank has filed suit federal court against the bank's and The receiver asks for the return $200,000 of Fergus Securities pany capital stock, the equivaand for injunction restrainthe bank directors from disposof the stock in any other way. Suspends 1923. cited in the complaint that the bank suspended Dec. 10, 1923; 1923, indemnity $700,000 was executed to insure Fergus county's deposits in the directors sureties making themselves liable personally for amounts ranging from $10,000 that June 15, bond for $75,000 was executed behalf city of Lewistown. Further, is cited that on Oct. 13, 1923, the directors adopted resolution withdrawing from the general assets of the bank $755,000 securities to protect these deposits. The plaintiff alleges that at the time this was adopted assessment per cent on the capital stock of the bank, made by the /comptroller of currency to capital of the institution, been met, and that plans for reorganizing the finances the bank by personal contributions by the stockholders had failed. The asks the court declare this resolution null and void, contending that protected the sureties that the withdrawal the securities gave the county city preference over other accounts. Names Defendants. Following are the defendants in the action Johnson, Peter Osweiler, George Wiedeman, James liott, Martha Waite, Andrew Brown, Sherman, Lane, Sweitzer, Woodard, David Hilger, Austin Warr H. Otten Johnson, George Wiedeman, James Elliott, Andrew Fergus, Brown, Sherman, Lane, Sweitzer, WoodMcClave, Peter OswelBelden, Donald Waite, David Hilger, Austin Warr, Taylor rectors: Johnson, Peter weiler and George Wiedeman depositories, and Matson administrator of the estate of George M. Stone, deceased, who was stockholder. alleged that the securities, after by order the resplution, came into the hand of JohnWiedeman and Osweiler, who have turned over to the but the $200,000 in stock which suit seeks recover, and that they refuse to turn over this stock.
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RECEIVER STARTS SUIT TO RECOVER SECURITIES GREAT FALLS, July 7.-Alleg ing that the directors of the First GREAT FALLS, July 7, leging that the directors of the First National bank of Fergus county in a resolution withdrawing from the general assets of the bank $755.000 in securities acted illegally and fraud ulently in protecting their personal sureties given to idemnify Fergus county and the city of Lewistown against loss of deposits, and for the further reason that the directors had been informed by the comptroller of currency that the bank was in an unsound condition, F. D. Williams as receiver of the bank has filed suit in federal court here against the bank's stockholders and directors. The receiver asks for the return of $200,000 of Fergus Securities company captial stock, or the equivalent and for an injunction restraining the bank directors from disposing of the stock in any other way. It is cited in the complaint that the bank suspended December 10, 1923; that February 28. 1923 an idemnity bond for $700,000 was executed to insure Fergus county's deposits in the bank. the directors as sureties making themselves liable personally for amounts ranging from $10,000 to $80, 000; that June 15, 1923, a bond for $75,000 was executed in behalf of the city of Lewistown. Further, it is cited that on October 13, 1923, the directors adopted a resolution withdrawing from the general assets of the bank $755,000 in securities to protect these deposits. The plaintiff alleges that at the time this resolution was adopted an assessment of 78 per cent on the capital stock of the bank, made by the comptroller of currency to repair the capital of the institution, had not been met. and that plans for reorganizing the finances of the bank by personal contributions or payments by the stockholders had failed. The receiver asks the court to declare this resolution null and void. contending that it protected the sureties and that the withtdrawal of the securities gave the county and city accounts un. warranted preference over other accounts.
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RECEIVER SUES FOR SECURITIES ACTION is BROUGHT IN THE FED ERAL COURT AT GREAT FALLS BY F. D. WILLIAMS AS RECEIVER OLD BANK. GREAT FALLS, July 7. leging that the directors of the First National bank of Fergus county in a resolution withdrawing from the general assets of the bank $755,000 in securities acted illegally and fraudulently in protecting their personal sureties given to idemnify Fergus county and the city of Lewistown against loss of deposits, and for the further reason that the directors had been informed by the comptroller of currency that the bank was in an unsound condition, F. D. Williams as receiver of the bank has filed suit in federal court here against the bank's stockholders and directors The receiver asks for the return of $200.000 of Fergus Securities company captial stock, the equivalent, and for an injunction restraining the bank directors from disposing of the stock in any other way. It is cited in the complaint that the bank suspended December 10, 1923; that February 28, 1923 an idemnity bond for $700,000 was executed to insure Fergus county's deposits in the bank, the directors as sureties making themselves liable personally for amounts ranging from $10,000 to $80, 000; that June 15, 1923, bond for $75,000 was executed in behalf of the city of Lewistown. Further. it is cited that on October 13, 1923, the directors adopted a resolution withdrawing from the general assets of the bank $755,000 in securities to pro tect these deposits. The plaintiff alleges that at the time this resolution was adopted an assessment of 78 per cent on the capital stock of the bank, made by the comptroller of currency to repair the capital of the institution. had not been met, and that plans for reorganizing the finances of the bank by personal contributions or payments by the stockholders had failed. The receiver asks the court to declare this resolution null and void. contending that it protected the sureties and that the withtdrawal- of the securities gave the county and city accounts un warranted preference over other accounts.
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The first and only paper to put into print the remarkable and revealing letter of U. S Attorney-General Sargent concerning the actual status of the failed First National Bank of Fergus County, the Recorder herewith gives a promised second chapter of the monstrously sordid story: In the suit in the federal court at Great Falls Receiver Williams alleges that the directors of the bank, in a resolution withdrawing from the general assets of the bank $755,000 in securities, acted illegally and fraudently in protecting themselves as personal sureties given to indemnify Fergus county and the city of Lewistown against loss of deposits, and for the further reason that the directors of the bank had been informed by the conptroller of the currency that the bank was in an unsound condition. The receiver asks for the return of $200,000 of Fergus Securities company capital stock, or the equivalent, and for an injunction restraining the bank directors from disposing of the stock in any other way. It is cited in the complaint that the bank suspended December 10, 1923, that previously. on February 28, 1923, an indemnity bond for $700,000 was executed to insure Fergus county's deposits in the bank, the directors as sureties making themselves personally liable for amounta ranging from $10,000 to $80,000; that on June 15, 1923, a bond for $75,000 was executed in behalf of the city of Lewistown, to insure its deposits. Further, it is alleged that on October 13. the directors adopted a resolution withdrawing from the general assets of the bank $755,000 in securities to protect these deposits. (In plain terms, to protect themselves as bondsmen against themselves as bankers.) The receiver further alleges that at the time this resolution was adopted an assessment of 78 per cent on the capital stock of the bank, made by the comptroller of the currency to repair the capital of the institution. had not been met: and that plans for reorganizing the finances of the bank by personal contributions or payments by the stockholders, had failed. The receiver therefore asks the court to declare this resolution null and void, setting up that it protected the sureties, and that the withdrawal of the securities gave the county and city ac counts unwarranted preference over other accounts. (In other words, to despoil all the other depositors because THEY had no bond to protect them.) The following are the defendants in the action: W. J. Johnson. Peter J. Osweiler, George J. Weideman, James L. Elliott. Martha S. Waite, Andrew Fergus, H. C. Brown, T. C. Sherman. J. E. Lane. E. C. Sweitzer, J. E. Woodard, David Hilger. Austin R. Warr and H C. Otten as sureties. W. J Johnson, George J. Wiedeman, James B. Elliott, Andrew Fergus, H. C. Brown, T. C. Sherman, J. E. Lane, E. C. Sweitzer, J. E. Woodard, C. R. McClaye, Peter J. Osweiler, O. W. Belden, Donald S. Waite, David Hilger, Austin R. Warr, T. F. Taylor and J. L. Steinbrenner as directors. W. J. Johnson, Peter J. Osweiler and George J. Weideman as depositories, and E. K. Matson as administrator of the estate of George M. Stone, deceased, who was a stockholder. Finally, it is set up by the receiver that the securities, after being withdrawn from the bank, came into the hands of Johnson, Weideman and Osweiler, who have turned over to the receiver all but the $200,000 in stock, which the suit seeks to recover, and that they refuse to turn over this stock, Other Chapters. There will be other chapters in this amazing story of bank wrecking. Recorder readers will fino them of absorbing interest. They will not appear in any other newspaper. The way to cure public wrongs is to burn them out by turning on the purifying rays of pitiless publicitv.
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Receiver Files Suit Great that the rectors of the First National bank of in resolution withFergus county general assets of drawing from the the bank $755,000 in securities acted illegally and fraudulently in protecting their personal securities given to idemnify Fergus county and the city of Lewistown against loss of deposits, and for the further reason that the rectors had been informed by the comptroller of currency that the bank in an unsound condition, Williams receiver of the bank has filed suit in federal court here against bank's stockholders and directors. The receiver asks for the return of of Fergus Securities company the equivalent, and capital stock, for an injunction restraining the bank from disposing of the stock in any other way. cited in the complaint that the bank suspended December 10, that February 28, 1923, an idemnity bond for was executed to insure Fergus county's deposits the the directors securities makbank, ing themselves liable personally for amounts ranging from $10,000 to $80.that June 15. bond $75,000 executed behalf of the city of Lewistown. Further, that on October 13, 1923. the directors adopted a resolution withdrawing from the general assets the bank securities to protect these deposits. Sedgwick Girl Drowned Kalispell, July Sedgwick, 15, daughter of Mr. and Cortez Sedgwick of drowned while wading in Flathead Lake near Big Fork Sunday afternoon, when she stepped into deep hole. Her father and brother, George, who were with her, each tried res cue her but also went uunder. The screams the family were heard the tourist park, where family Northern Pacific surveyors were working. to the spot and while Carl Carlson of Helena out, bringing the boy to safety and dived for the father in feet of the other young men dived for the body of the girl. She, however,
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Demands Made On Fergus Bank Board For Return Of Securities Alleging that the directors of the First National bank in a resolution withdrawing from the general assets of the bank $755,000 in securities acted illegally and fraudulently in protecting their personal sureลฃies given to indemnify Fergus county and the city of Lewistown against loss of deposits, and for the further reason that the directors had been informed by the comptroller of currency that the bank was in an unsound condition; F. D. Williams as receiver of the bank has filed suit in federal court here against the bank's stockholders and directors, says the Great Falls Tribune. The receiver asks for the return of $200,000 of Fergus Securities company capital stock, or the equivalent, and for an injunction restraining the bank directors from disposing of the stock in any other way. It is cited in the complaint that the bank suspended December 10, 1923, that February 28. 1923, an indemnity bond for $700,000 was executed'to insure Fergus county deposits in the bank, the directors as sureties making themselves liable personally for amounts ranging from $10,000 to $80,000; that June 15, 1923 a bond for $75,000 was executed in behalf of the city of Lewistown. Further, it is cited that on October 13, 1923, the directors adopted a resolution withdrawing from the general assets of the bank $755,000 in securities to protect these deposits. The plaintiff alleges that at the time this resolution was adopted an assessment of 78 per cent on the capital stock of the bank, made by the comptroller of currency to repair the capital of the institution, had not been met, and that plans for reorganizing the finances of the bank by personal contributions or payments the stockholders had failed. The receiver asks the court to declare this resolution null and void, contending that it protected the sureties and that the withdrawal of the securities gave the county and city accounts unwarranted preference over other accounts. Following are the defendants in the action: W. J. Johnson, Peter J. Osweiler, George J. Wiedeman, James, B. Elliott, Martha S. Waite, Andrew Fergus, H. C. Brown, T. C. Sherman, J. E. Lane, E. C. Sweitzer, J. E. Woodard, David Hilger, Austin R. Warr and H. C. Otten as sureties; W.J Johnson, George J. Wiedeman, James B. Elliott, Andrew Fergus, H. C, Brown, T. C. Sherman, J. E. Lane, E. C. Sweitzer, J. E. Woodard, C. R. McClave, Peter J. Oswelder, O. W. Belden, Donald S. Waite, David Hilger, Austin R. Warr, T. F. Taylor and J. L. Steinbreriner as directors: W. J. Johnson, Peter J. Osweiler and George J. Wiedeman as depositories, and E. K. Matson as administrator of the estate of George M. Stone. deceased, a stockholder. It is alleged that the securities, after withdrawn by order of the resolution, came into the hand of Johnson, Wiedeman and Osweiler, who have turned over to the receiver all but the $200,000 in stock which the suit seeks to recover, and that they refuse to turn over this stock.