Farmers State Bank (Mandan, ND)

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THREE BANKS CLOSE IN MORTON COUNTY Run on Institutions Held Responsible; Reorganization Plans Made Voluntary closing of three Morton county state banks was announced Friday as the result of runs started early in the week. The banks closed are the Farmers State Bank of Mandan with total footings of $600,000. the First State Bank of New Salem and the Farmers and Merchants State Bank of New Salem, each with footings of $300,000. Bank officials said the closings took place as a protective measure and that they expected depositors to realize 100 per cent on deposits. They said the Mandan bank will be reopened while efforts are being made to consolidate and reorganize the two New Salem banks. Bankers said the run resulted in withdrawals of $40.000 within the last few days from the Farmers State Bank of Mandan and $25,000 from the two New Salem banks. The run followed the closing of a small bank at Judson last week. The First State Bank of New Salem has bonds of $80,000 and the Farmers and Merchants bonds of $40.000 while the Farmers State Bank of Mandan has bonds. stocks and warrants of $107.000. The Mandan bank is backed by the Lanterman interests. W. A. Lanterman died a few years ago, leaving an estate of about $1,000.000. Officers of the bank declared that paper carried was very conservative in every instance. John A. Timmerman, cashier of the Mandan bank, is a heavy stockholder in the two New Salem banks.

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Supreme Court

Decisions

State of North Dakota, plaintiff, vs. Farmers' State Bank of Mandan, in re application of Farmers' Union Livestock Marketing association, defendant.

Where a banking institution suspends business and closes its doors and, at the same time, takes from a customer checks for collection and deposit without notifying him of such suspension, an implied trust is created and the proceeds from the check become a special deposit.

The checks in the case were cleared to another bank. The decision holds that the depositor had traced the checks into the bank's clearing fund and was entitled to a preference over other creditors in such fund and to have a trust in his favor impressed on such cash on hand in the bank at the time of closing. Decision reverses that of Morton county district court.

R. O. Richardson, plaintiff and respondent, vs. W. H. Thomas, defendant and appellant.

Action on a promissory note, given in payment for a flour mill, which was taken back by the vendors after default.

Evidence held sufficient to support findings of Bowman county district court that plaintiff repurchased the mill for an agreed consideration which was credited upon the defendant's indebtedness.

State, ex rel Torkel Nyland, plaintiff and respondent, vs. Northern Packing company.

An employe, injured in course of employment by an employer not insured under the state workmen's compensation act, may file his application with the workmen's compensation bureau for an award, but may not maintain a court action for a recovery until the bureau has disposed of the matter in a final award. Decision reverses Grand Forks county district court and dismisses case.

Ella G. Bolen, plaintiff and respondent, vs. Mr. and Mrs. Alvin W. Dolph, defendants and appellants.

Action for damages to an automobile with a counter claim for damages to another automobile. Decision of Ward county district court affirmed.

Thomas Holden, plaintiff and respondent, vs. Eva S. Walker and others, and Eva S. Walker and Charles W. Morris, defendants and appellants.

Decision holds that, where a transfer of property is fraudulent as to a creditor, the creditor may treat the conveyance as void against him and the property as still that of the debtor. He may attach such property, though held by a third person, and institute action to determine adverse claims against it. If the creditor does not consent to the terms of such transfer to a third person, his lien against the interest of his debtor in the property is superior to the interests of the grantee. Affirms decision of Ramsey county district court.

State of North Dakota, plaintiff and respondent, vs. Gilbert Rudy, defendant and appellant.

In an action to establish the paternity of a child born out of wedlock, defendant may show illicit relations between the mother and other men at or about the time the child may have been begotten as tending to show that someone other than he is the father of the child, but such evidence is not admissible as tending to impeach the character of the prosecutrix or to prove an immoral disposition on her part. Decision affirms judgment of Emmons county district court.

Security Building and Loan association, plaintiff and appellant, vs. J. Warren Bacon and others, and the Rogers Lumber company, defendant and respondent.

Reversing action of Ward county district court in case involving a real estate mortgage in which defendant set up a claim under a subsequent mortgage and asked that it be adjudged superior to that of plaintiff which it was sought to foreclose. Case involved furnishing of building

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Lundoff-Bicknell Are Standing Pat Contracting Firm Makes No STATE BOND FUND Move to Adjust Labor Difficulties At Capitol CLAIMS $64,951.19 INDIFFERENT TO DELAY FROM MANDAN BANK Rishworth Agrees Strike Automatically Extends Time Asserts Timmerman Shortages Alloted Firm Were Made As Banker, Not As Treasurer As the common laborers' strike on the North Dakota state capitol buildA claim for $64,951.19 against the ing project entered its fourth day closed Farmers State Bank of ManFriday, it was indicated that the Lundan has been filed by Harold Hopton, doff-Bicknell construction company representing the state bonding fund was "standing pat" on the contention and also the city of Mandan, on the that the deadline for completion of ground that the bank is liable for the building will be extended to corsome of the funds J. A. Timmerman, respond with the duration of the former Mandan city treasurer, is alstrike. leged to have embezzled from the Though the Chicago contracting city. firm officials issued no statement, R. The claimants reserved the right M. Rishworth, chairman of the state to file additional claims for losses capitol building commission, said the that may subsequently be discovered. contract made such provision. Hopton claims that Timmerman, The commission, he said, remained as cashier of the bank, "unlawfully on the sidelines as the stalemate conand without due authority, set up tinued. charges against the account" of the Rishworth said the contractors have city. He bases the claim on the been living up to their contract, as theory that the funds taken by Timinterpreted by the capitol commission. merman were from the city's account The contract sets a minimum wage in the bank and that the bank is to be paid common laborers, he said. liable to the city for the shortages. "If the Lundoff-Bicknell people pay At the same time Hopton, in a at least that minimum wage,' he said, letter to C. D. Cooley, president of "the capitol commission cannot insist the Mandan city commission, offered that the contractors pay a higher the city $29,963.93, plus accrued inscale." terest, in settlement of the claims Declaring that if the strike conagainst the bonding fund. Claims Total $95,907.95 tinues indefinitely, completion of the building apparently also will be exClaims have been filed against the tended indefinitely, Rishworth exstate bonding fund by the city of Mandan for $126,736.47. of which pressed the hope that the contractors and laborers would reach a satisfac$95,907.95 is set out as shortages, and tory decision in the near future so $30,831.32 accrued interest at six per that construction operations might be cent to May 1. Timmerman is servresumed. ing a prison term for embezzlement of city funds. Deadline Is February Various factors are involved in the The deadline for completion of conclaims made by the city against the struction was set in the original conbonding fund. The bonding departtract for the middle of next February. ment claims that an audit made by Inclement weather during the winter the state examiner in June, 1928, dishas extended that date by about a month. closed information which, it is alleged, abrogated the contract beThough contracts have been made tween the city and the state bondfor most of the materials that will go ing fund. into the building, the present trend Mandan city officials, however, in of rising prices and the overhead innotifying the bonding fund of the volved in the construction during the strike will serve to cut down the shortages last November, said that the state examiner's report disclosed state's share in any savings which "items aggregating more than $90,might be effected in the building operations. 000 had been paid, for which there were no warrants, bonds or coupons Neither the contractors nor the laon file, some of these items having borers had made an initial move toevidently been credited on bank debit ward conciliation Friday, the laborslips, and some for which no debit ers previously having announced that slips were available, so that it was they will make no further efforts to impossible to segregate the specific reach an agreement because all their efforts since March 9 to have the items claimed to have been paid." Some Items Lost pay scale elevated have been unavailing. Some of these items were claimed to have been lost and it seemed imA squad of eight National Guardsmen was sent to the construction site possible to do anything at that time Thursday evening by Adjutant Genbut to accept the story of the officials, inasmuch as many thousands of doleral Herman A. Brocopp upon order of Governor William Langer to prolars of paid special assessment wartect property. Picketing operations rants, bonds and coupons were found of the laborers continued in full filed in the auditor's office without force. having been marked "paid" or "canMore than 90 common laborers quit celled," C. D. Cooley, president of the work last Tuesday morning with the city commission, said in his notice approval of the International Union to the bonding fund. Attention also of Hodcarriers, Builders and Common was called that the destruction of Laborers. The contractors quit opthe city hall by fire a few weeks prior erations immediately, declaring it to the audit made it possible that the useless to go ahead with the work items had been lost or mislaid. Cooley without the common laborers. Skilled said in view of the circumstances city laborers are being thrown out of work officials could only wait to see if any by the strike. items claimed to have been paid were again presented for payment. Hopton is offering a settlement in N. D. Men to Attend behalf of the bonding department, said it was made on the assumption Holstein Convention the bonds issued by the state are continuing where an official succeeds John Christiansen and Frank Gaebe himself in office, and that the annual of New Salem will be North Dakota's premium merely extends the term of official delegates at the 48th annual the bond rather than creating a new convention of the Holstein-Friesian contract; that the city would be Association of America, the world's stopped to recover any defaults which largest dairy cattle organization, at occurred more than six years before Chicago June 6 and 7. commencing suit. An entertaining and educational File Claim With Baird program has been arranged. June 6 The claim against the closed Farmwill be "open forum day" and vital ers State Bank of Mandan was filed problems of the dairy industry in with Baird as receiver of the bank, general and the Holstein breed in the Northern and Dakota Trust Co., particular, will be discussed. Tours have been scheduled for both Fargo, which issued a corporate surety bond for $17,500, and E. A. Ripley, the breeders and their wives through A. O. Henderson, H. W. Lanterman, the shopping districts, boulevard sysPlus Zueger, F. J. Zander, all of Mantems and nearby Holstein-breeding establishments. The annual banquet dan, and M. Grewer, Bismarck, said and dance will be held the evening to have given personal surety bond for $40,000. of June 7. A national world's-fair Holstein The claim sets out that under date cattle sale will be held at the interof November 6, 1931, the city of Mandan, as beneficiary under the bonds, national amphitheater June 8 and 9, with more than 40 breeders throughhad on deposit in the bank $64,941.19 and that "all of said sum is now, or out the country having consigned some of their best animals to the aucshould be, shown to the credit of the tion block. said beneficiary on the records of the said principal bank. C. D. Cooley, president of the ManNeedy Men Told Cash dan city commission, said the city acquiesed in joining the bonding fund Payments 'Impossible' in making claim against the closed Farmers State Bank of Mandan for Needy men on the Burleigh county shortages in the accounts of former relief lists, who went on strike WedCity Treasurer J. A. Timmerman with nesday, failed to resume work Frithe understanding that this would not day on county roads though it was prejudice the claims of the city explained to them Thursday evening against the state bonding fund. at a meeting with the county emergency relief committee why it was TWO MEETS SCHEDULED "impossible" to meet their demands. The men. who have been receiving High school track and field meets

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MANDAN AGREES TO ACCEPT $40,000 IN EMBEZZLEMENT CASE Bonding Fund to Pay That Amount and Prosecute Sureties on Bank Bond Mandan, N. D., May 27.-(P)-Acceptance of $40,000 in settlement of a claim by the city of Mandan against the state bonding fund in connection with the embezzlements of Former City Treasurer J. A. Timmerman, now serving a prison term, has been unanimously voted by the Mandan city commission. The audit report made by a national auditing company showed a total of $63,000 allegedly taken from the city funds by Timmerman. Numerous legal issues, never tested in North Dakota courts, were raised by the bonding fund and caused the city commission to accept the settlement rather than depend on the outcome of lawsuits. In addition to the payment of $40,000, the city has assigned to the bonding fund all claims against sureties on the personal bonds, on the depositors' bonds and on the cashier's bonds of the Farmers State bank, now closed, and of which Timmerman was cashier. The bonding fund will bring action against the sureties in an effort to recover. Any funds above the $40,000 recovered by the bonding fund are to be paid to the city, it was agreed. The chief issue between the city and bonding fund was the claim of the fund that the $25,000 bond under which Timmerman was placed with the state department was a continuing bond running from year to year. The city contended this was an annual bond. No ruling has been made on this point in North Dakota courts and other states were said to have divided about evenly on the ruling. Prior to the meeting of the city commission late Friday afternoon, a conference between President C. D. Cooley of the city board, City Attorney Joseph Fleck, Special Counsel Harold Hopton of the bonding fund, Commissioner S. A. Olsness and about a score of the heaviest taxpayers of Mandan considered the $40,000 offer.