First Farmers Bank (Minot, ND)

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TWO MOREN

D. BANKS CLOSED Institutions at Minot and Carpio Report Insufficient Cash Reserve. Minot. Dec. 27.-The First Farmers Bank of Minot. capitalized at $50.000 with $5,000 surplus. owned by the Savings Loan and Trust company of which Anthony Walton is president, and G. A. Ebbert, general manager, closed voluntarily today. The First Security Bank of Carpio, owned by the same trust company, also closed and G. A. Ebbert instructed the American Exchange Bank of Watford City, also owned by the-Savings Loan and Trust company to remain. open unless depositors institute a run on the institution. Up to a late hour this afternoon no information has been received as to whether Watford City Bank had closed or not. According to a statement made by Mr. Ebbert the bank closed voluntarity because of a shortage of cash reserve which condition is traceable to the refusal of farmers to sell their grain and pay indebtedness. to the bank. O. E. Lofthus, state bank examiner, is in this section of the state and is expected to arrive in Minot tonight and take charge of the bank. The annual meeting of the Savings Loan and Trust company will be held January 4 and at that time the matter of the farmers' liquidating their paper with the bank will be considered and an ample cash reserve created to enable the bank to reopen in the very near future, Mr. Ebbert states. The other banks of the trust company will reopen when the Minot bank secures a sufficient cash reserve. The banks were organized by Grant C. Youmans, former Minot banker and now of Minneapolis. He resigned as president of the trust company and banks more than a year ago.

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Chicago Bank Wrecked By Losses in Hold-Ups Special Dispatch to The Tribune CHICAGO, Dec. 27.-The Dressel Commercial and Savings Bank, 2322 West Roosevelt Road, the scene of three holdups in the last two years, was placed in the hands of a receiver to-day by Federal Judge Carpenter. It is believed that the raids of the robbers, which netted them $7,250, placed the bank in an embarrassing position. Special Dispatch to The Tribune FARGO, N. D., Dec. 37.-Three more Non-partisan League banks closed their doors to-day. They were the First Farmers' Bank of Minot, the Security State Bank of Carpio and the Peoples' State Bank at Hatton. In the last two months twenty-seven state banks in North Dakota have closed. The Minot and Carpio banks had aggregate deposits of about $400,000 and capital of $65.000. The Hatton bank had deposits of $100,000 and capital of $50,000. Officials said the institutions were solvent and would open. PRIMEVILLE. Ore., Dec. 27.-The Crook County state bank of this place failed to open its doors to-day. Shrinkage of values of cattle and sheep on which the institution had made loans was said to have been responsible.

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CHICAGO BANK CLOSED; PRESIDENT IS MISSING Chicago, Dec. 28.-Depositors of the Dressel Commercial and Savings Bank waited in vain for its doors to open vesterday and when the president Andrew Dressel, could not be found, creditors petitioned Judge Carpenter in Federal District Court to adjudge the bank bankrupt. The Chicago Tile and Trust Company was appointed receiver, Other bank officials said the Dressel bank's funds had been depleted through the operations of hold un men and burglars during the past two years. Minot. N. D., Dec. 28.-The First Farmers' Bank of Minot was closed yesterday. Depleted reserve was given as the reason. The First Security Bank of Carpio, N. D., associated with the First Farmers of Minot, was closed yesterday afternoon. The closing of the People's State Bank at Hatton, N. D., was announced in Fargo. Princeville, Ore., Dec. 28.-The Crook County State Bank. of this place. failed to open its doors yesterday Shrinkage of values of cattle and sheep on which the institution had made loans was said to have been responsible.

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Receiver Named For Minot Bank; Probably Will Open In January Minot, N. D., Dec. 29.-O. E. Lofthus, state bank examiner, arrived in Minot Monday night and placed Ole Lovik of the state bank examiner's office in charge of the First Farmers Bank of Minòt which closed yesterday. Mr. Lovik is checking up the institution. Mr. Lofthus remained in Minot until early Tuesday morning, going from here to Mohall. He expects to return to Bismarck Tuesday night. G. A. Ebbert, general manager of the Savings Loan and Trust Co., which owns the First Farmers Bank of Minot, the First Security Bank of-Carpio, which also closed and the American Exchange bank at Watford City, stated today that the Watford City institution has not closed and will remain open. The opinion is generally expressed by those connected with the trust company that the Minot and Carpio banks will re-open the fore part of January. The shareholders of the company hold their annual meeting in Minot January 4.

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CHICAGO BANK CLOSED

Three in North Daketa Also Forced to Shut Doors. Chicago, Dec. 29.-Depositors of the Dressel Commercial and Savings Bank waited in vain for its doors to open Monday and when the president. Andrew Dressel. could not be found. creditors petitioned Judge Carpenter in Federal District Court to adjudge the bank bank rupt. The Chicago Title and Trust Company was appointed receiver Other bank officials said the Dressel bank's funds had been depleted through the operations of hold-up men and burglars during the past two years. Minot. N D. Dec. 29.-The First Farmers Bank of Minot was closed Monday Depleted reserve was given as the reason The first Security Bank of Carpio, \ D., associated with the First Farmers of Minot. was closed Monday afternoon. The closing of the People's State Bank of Hatton. N. D., was announced in Fargo.

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Institution Owned by Savings Loan and Trust Co. Expects to Reopen Soon-Security Bank at Carpio Also Closed. The First Farmers Bank of Minot, capitalized at $50,000 with $5,000 surplus, owned by the Savings Loan and Trust Co., of which Anthony Walton is president and G. A. Ebert general manager, closed voluntarily Monday. The First Security Bank of Carpio owned by the Savings Loan and Trust Co., also closed, but Manager Ebert stated that the American Exchange Bank at Watford City, N. D., a kindred institution, would remain open unless the depositors made a run on the bank. Mr. Lovik, a state bank examiner, who resides in this city, is now in charge of the affairs of the bank. Altho there is a sign on the front of the bank notifying the public that the institution has been temporarily closed, the Savings Loan and Trust Co. is still doing business in the building occupied jointly with the bank. A representative of the Independent interviewed Mr. Walton Tuesday. He stated that the reopening of the bank would depend largely upon the decision of the stockholders who will hold their annual meeting Jan. 4. Mr. Walton explained that poor collections during the fall made it necessary to close the bank temporarily at least. While there are over $300,000 bills receivable, very little money has been paid in during the fall, he said. Money kept going out, and little came in, consequently it was decided to close until conditions could be re-adjusted. The checking account was very light at the time the bank closed, something like $20,000. There were 171 depositors with an average checking account of less than $5.00, Mr. Walton stated. Since the bank closed many of the stockholders have asked Mr. Walton if $100 each from them would be of any assistance in re-opening the institution and he states that an attempt will probably be made at the annual meeting to raise enough money so the affairs of the institution may be carried on. Mr. Walton stated that since closing the bank, he has been figuring up the bills receivable and finds there is over $300,000 of this kind of paper. "Our bills are considered good, only we cannot realize on them at this time," he said. The Trust Co. has an equal amount of assets. The Trust Co. has thirty houses all bringing in rent and will keep on doing business just the same." The following statement was given out by Mr. Ebbert: "The closing of the First Farmers Bank of Minot was due to the simple

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The annual meeting of the stockholders of the Savings Loan and Trust Co. was held at the hall in the Farmers store building on the afternoon of Tuesday, Jan. 4, and the question of re-opening the First Farmers Bank of Minot and the First Security Bank of Carpio, closed voluntarily on Dec. 27, for lack of sufficient cash reserve, was taken up. The meeting was at tended by fully 200 shareholders and after the matter had been thoroly discussed by G. A. Ebert, general manager, and Anthony Walton, president of the Savings Loan and Trust Co., the shareholders were unanimously in favor of proceeding with the re-opening of the two banks and pledged their combined resources, if necessary, in order that the institutions may be reopened. An Independent representative who called at the bank the following day and interviewed Messrs. Walton and Ebert, was informed by those gentle> men that they were very hopeful of reopening the two banks about January 15. At Tuesday's meeting, the shareholders pledged $10,000, raising more than half of that amount that day. Committees were appointed to work in the various townships in Northwestern North Dakota and assistance is even forthcoming from sections of eastern North Dakota. Among some of the items offered Tuesday's meetings was a $600 hail insurance warrant, railroad pay checks, Liberty Loan bonds, Thrift Stamps, and cash running in amounts

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nybrook State Bank is listed as under obligations to the Bank of North Dakota to the extent of $93,534.31. It is the home of the famous Del. Patterson. No wonder that bank decided to close its doors, when it owed one bank alone such an amount. The First Farmers' Bank of Minot is another institution run until recently by Grant Youmans, former socialist treasurer of the state organization, and a friend of Townley. On Dec. 3d, last, it had a total obligation to the Bank of North Dakota of $65,966.52. The above figures are taken from the Bridgeman-Brissman audit as of Dec. 3d. Undoubtedly, still more startling conditions would be developed if the house investigating committee could get access to all records of the bank, and would know where to go to find the suspicious details. But Manager and Director General Cathro has indicated that he would ratner go to jail than let the committee have access to the records of even the Scandinavian-American Bank deals only. The people of North Dakota builded better than they knew when they vot ed in favor of the initiated law calling for the examination of the Bank of North Dakota.

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Van Sickle Receiver of First Farmers Bank G. R. Van Sickle has been appointed receiver of the First Farmers Bank of Minot, the appointment being made by O. E. Lofthus, State Bank Examiner. Mr. Van Sickle began his duties at the bank today. He has just started checking the business of the bank and is in no position to make public any figures at this time. He firmly believes that everything will be found in first class condition, with the exception of the low cash reserve, which caused the bank to close some months ago, and he informs the Independent that he hopes to have the business in such shape within a few weeks so that the bank will be in a position to re-open. Anthony Walton, president of the Savings Loan & Trust Co., is attending to the usual business of the Trust Co., which is located in the same room as the bank. The appointment of Mr. Van Sickle is regarded as a very wise selection as he has gained the reputation of being one of the very best accountants as well as one of the most competent credit men in the state.

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JUDGE C

W. BUTTZ WILL TRY BANK CASES AT MINOT Judge C. W. Buttz and Court Steno. grapher Lloyd B. Stevens leaves next Tuesday for Minot to try about 20 civil cases in district court wherein the judges in that district are disqualified. The cases to be tried are practically all brought by the receiver of the First Farmers Bank of Minot, which was organized by Grant S. Youmans a number of years ago, and which was closed in the fall of 1920, against farmers who gave notes in payment of bank stock. Judges John C. Lowe of Minot and Geo. H. Moellr_ ing of Williston both owned stock in the defunct bank, and were therefore disqualified to act. A large per cent of the farmers in Ward, Williams, Burke, Divide, Mountrail and other counties in the vicinity of Minot signed notes for stock in the bank which was organized by Mr. Yeomans, and in which the Savings Loan & Trust Co. of the same city owned the majority of the stock. The bank was organized after another bank in which Yeomans held a heavy stock was closed by the state banking department. At the time the first bank was closed Mr. Yeomans brought a damage suit against L. B. Hanna, who was then governor, and the state banking department, for putting him out of business, but the case was dismissed after the evidence was heard by the court. The new bank was in business for several years, and during the time of tight money in 1921 received several quite large deposits from the Bank of North Dakota. In spite of this it was unable to hold out and closed its doors in the fall of 1920, and a receiver was appointed to liquidate it. Many farmers paid their notes a short time after they were given, but many resisted payment on various grounds. The notes are now in possession of- the receiver, and he is bringing action to enforce collection. Among the farmers who are resisting payment are those who claim that Mr. Youmans did not keep his part of the agreement, that no stock was ever issued to them, and that no value was given for the notes. In the vicinity of Bowbells, in Burke county, the stock salesman told the farmers that Mr. Yeomans was planning on starting a bank in Bowbells and stock being sold in the new bank to be established: Farmers signed notes with the idea of getting stock in a Bowbells bank, but such bank was S never established, and the notes were S never returned to the signers. These notes are now in the possession of the 1 receiver of the Minot bank, and action is being brought to compel the farmy ers to pay them. The cases will involve many new points to be decided by the court, and outcome will be watched with considerable interest by people all over the state.

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EYESIGHT FAILS,

MAN RELIEVED

FROM HIS NOTE

Minot, N. D., May 15.-Judge C. W. Buttz of Devils Lake, deciding in the action brought by C. A. Haines and Mrs. C. A. Haines, farmers, against G. R. Van Sickle, receiver of the First Farmers bank of Minot, to set aside and cancel a real estate mortgage on their homestead and a chattel mortgage on the crops there, holds the notes secured by the mortgages were without consideration, or that consideration had failed.

The plaintiff signed a written contract to buy five shares of capital stock of the Savings Loan and Trust company of Minot and gave his note therefor. The shares were never issued to him because the company could not deliver the shares of stock until the note was paid, under the terms of statutes cited by Judge Buttz.

Haines, who is nearsighted and unable to read without a high powered magnifying glass, was approached by a stock selling agent of the Savings Loan and Trust company while harvesting and without his magnifying glass was unable to read the documents he signed. He claimed that when he signed there was talk about organizing the First Farmers bank of Minot, or a farmers bank of some sort, and that he was contracting for stock in this proposed banking institution, and not in the Savings Loan and Trust company.

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POST-DATED

CHECKS ASKED

ORDERED SOLD

Foreclosure Suit Instituted on Loan Made by Nonpartisan League

Suit has been instituted in Burleigh county district court by Dickinson and Johnson, Minot attorneys, for the receiver of the First Farmers Bank of Minot, against the National Nonpartisan League, to foreclose on security given for a loan made by the bank to the organization.

The loan, for $6,000, was made March 25, 1920, due in 90 days, according to the complaint. About 800 post-dated checks, aggregating about $12,000, given by individuals on banks in North Dakota, Nebraska, Oklahoma, Wisconsin, Idaho, Kansas, Montana and Washintgon, were given the bank as security. The unpaid portion of the note is alleged to be $2,658.37.

The court is asked to order the security foreclosed and the checks sold.

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Note Is Not Held Payment For Stock Upholding a decision of the Ward county district court, the supreme court held that a promissory note given by a prospective stockholder in a bank in payment of stock could not be considered as a payment for any part of the stock. The decision was made in the case of L. R. Baird as receiver of the First Farmers Bank of Minot vs. Torger Kilene.

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PAGE FOUR MANDAN DAILY PIONEER, THURSDAY OCTOBER 1925 Mandan Daily Pioneer MANY CASES DECIDED BY SUPREME W N The Step-Child PUBLISHERS HANDED DECISIONS Subscription Rates COURT By mail, per year, in First and Second Zones $4.00 SUBJECTS By mail outside First and MANY Second Zones COVER Carrier in city, per 'ear -RULINGS Carrier in city, per month

(By Associated Press) LUMBER CO. LOSES In cases where building is erect ed on a solid foundation by man purchasing the land on contract it is Illegal for companies furnishing miterial for the structure to remove the ng from the property after it reverts to the original owner the supreme court held in the case of R S. Middlaton vs Dunham Lumber company which was appealed to the high court from the district court of Hettinger county Action of the lower court in granting an injunction preventing the lumber company from re moving the structure from the proparty was upheld.

ELEVEN JURY VERDICT Citing a previous decision in which verdicts returned by a vote of less than 12 members of a jury were held invalid, the supreme reversed a decision of the Eddy county dis trict court and remanded for a new trial the case of the National Cash Register company versus the Midway City Creamery company.

NOTE NOT PAYMENT Upholding a decision of the Ward county district court, the supreme court held that a promissory note given by a prospective stockholder in a bank in payment of stock could not. be considered as a payment for any part of the stock The decision was made in the case of L. R. Baird as receiver of the First Farmers Bank of Minot vs Torger Kilene sponsibility for ownership persons, the of supreme stock in living Baird banks as R. of L. the case held in Bank court State Clyde as receiver B. McMillan of the as executor of the by vs will C. of James Balfour, the district appealed court from defendant the question The county Burleigh estate of the or not whether was been had who person deceased could of bank the state in shareholder on assessment for an held liable be statutory super-added of account after fails the bank liability death where of the shareholder and the where claim was not filed or lowed in probate court

LIEN MAY BE PLURAL Action to foreclose mechanics be press tenant may lien ed against against a one co-tenant for work done on property held jointly, the supreme court held in the case of E A. Viker vs Frank E. Beggs and others, ap pealed by the defendants from the trict court of Traill county

ORD ER NEW CROSSING Constry tion by the Great Northern railroad of a new crossing in Ross township. Mountrail county, has been ordered by the state railroad board as the result of petition by the town ship ssioners that the present crossing be abandoned and a new one established. After a hearing the railroad board ordered the change made on the ground that the present cross ing is unnecessarily hazardous The order directs the Great Northern Rail road make provision for the new crossing in its budget for 1926 and to complete the work by June 15 01 next year

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From Ward County L. R. Baird, as Receiver of the First Farmers Bank of Minot, N. D., a corporation, plaintiff and appellant, vs. Torger Kilene, defendant and respondent.

SYLLABUS:

1. Under section 138 of the State Constitution and section 4529 C. L. 1913, a promissory note, given by a prospective stockholder, cannot be considered as payment of any part of the capital stock.

2. When an application is made to become a stockholder in a corporation which has been organized and is functioning, a delivery or tender of the certificate is a condition precedent to the right of the corporation to maintain an action for the price, unless the offer or contract otherwise provides.

3. Where an offer to become a stockholder in a corporation in process of organization contains a stipulation that there shall be accepted a promissory note in payment of the

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Minot Bank Will Pay a Dividend A 10 per cent dividend to creditors of the First Farmers Bank of Minot was announced today by L. R. Baird, receiver of state banks. It will be paid through G. R. Van Sickle, district manager for the receiver, Minot. A previous dividend of 10 per cent already has been paid. Depositors whose claims have been approved by the state guaranty fund commission will receive their dividend as a special payment by that body.

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Supreme Court

Reverses One of

Its Own Members

The supreme court today was placed in the position of having reversed one of its own members in the case of Alle Fleckten, R. M. Rose and Lee Brundage vs. the Ward County Farmers Press, and W. A. Beardsley as trustee and L. R. Baird as receiver for the First Farmers Bank of Minot, appealed from the Ward county district court.

While sitting as judge of the Ward county district court, A. G. Burr, now

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FROM WARD COUNTY

Alle Fleckten. R. M. Rose and Lee Brundage, Plaintiffs and Respondents

-VS.-

Ward County Farmers Press, a corporation, et al, Defendants W. A. Beardsley, as Trustee of Ward County Farmers Press, Defendant and Respondent L. R. Baird, as Receiver of First Farmers Bank of Minot, North Dakota, a corporation, and Einar Berge, Defendants and Appellants.

SYLLABUS: In an action to foreclose a mortgage and to determine the priority between mortgages on the same property where the record shows that the findings of the trial court are not sustained by mortgage record and the documents themselves, the judgment will be reversed.

Appeal from the District Court of Ward County, North Dakota, Hon. A. G. Burr, Judge.

REVERSED. Opinion of the court by Burke, J. Burr, J., being disqualified, Hon. C. W. Buttz, District Judge, sitting in his stead.

Halvor L. Halvorson, and B. H. Bradford, of Counsel, Minot, North Dakota, Attorneys for Defendants and Appellants.

Dickinson & Johnson, and L. J. Palda, Jr., and C. E. Brace, all of Minot, North Dakota, Attorneys for Plaintiffs and Respondents.

Paul Campbell, Minot, North Dakota, Attorney for Defendant and Respondent, W. A. Beardsley.

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Judgment of Lower

Court Is Unchanged

Where a case triable to a jury is tried only to a judge, the supreme court will not upset the judgment unless it is clearly shown that the judgment is contrary to the evidence, the court held today in the case of L. E. Baird, as receiver for the First Farmers Bank of Minot, vs. Albert Abraham.

In the case before the court it was held that a promissory note given by Abraham to the bank was without consideration. The case was appealed by Baird.

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Hans Nybakken and Karen Nybakken. Plaintiffs and Respondents, vs. L. R. Baird, as Receiver of First Farmers bank of Minot, a corporation, and G. R. Vah Sickle, as Receiver of First Farmers bank of Minot, a corporation, Defendants and Appellants.

1. In an action brought to quiet title where the defendant set up a mortgage lien given to secure notes for which the original consideration was a stock subscription, the plaintiffs replied, alleging that the subscription was made in reliance upon false representations as to the dividend paying qualities of the stock and failures of consideration consisting in the fact that the stock had not been delivered. The evidence is examined an it is held: (a) To support the finding of the trial court to the effect that the subscription was induced by false representations relied upon by the plaintiffs; (b) To support the finding of the trial court to the effect that the false representations were known to both the original payee of he note and the transferee, the bank of which the defendant is receiver; (c) To support the finding of the trial court to the effect that the false representations were known to both the original payee of the note and the transferee, the bank of which the defendant is receiver; (c) To support the finding that the subscriber did not become aware of the falsity of the representations until about the time of the commencement of this action.

2. Where renewal notes are given in ignorance of the falsity of representations, in reliance upon which the original obligation was assumed, the maker is not precluded from asserting his defense when the renewal notes are sought to be enforced against him.

3. Under Section 4529 of the Compiled Laws of 1913, the capital stock of a corporation can not legally be issued before the payment of a note given "in settlement, when paid".

4. Where the maker of a note is not shown to have executed the same for the accomodation of the payee bank nor for the purpose of enabling the bank to make a better showing of assets to the public examiner, the receiver of the bank stands in no better position with respect to the obligation than the bank itself. (Syllabus by the Court). Appeal from the District Court of Ward County, Hon. John C. Lowe, Judge. Affirmed. Opinion of the Court by Birdzell, J. McGee & Goss, for Appellants. E. R. Sinkler and G. O. Brekke, for Respondents.