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Minneapolis Now Feels It. MINNEAPOLIS, May 17.-The Citizens Bank has suspended and a receiver has been asked for the Northwestern Guarantee Company.
Citizens Bank (Minneapolis, MN)
Episode Information
- Episode Type
- Suspension → Closure
- Start Date
- May 17, 1893
- Location
- Minneapolis, Minnesota (44.980, -93.264)
- Bank Type
- trust
Metadata
Notes
Suspension on May 17, 1893 followed by a general assignment/receiver requested July 8, 1893.
Events (2)
1.
May 17, 1893
Suspension
- Cause Details
- Precautionary suspension due to inability to realize promptly on securities (liquidity problem rather than reported insolvency).
- Newspaper Excerpt
- A notice on the door says that depositors will be paid in full. The officials declare that the bank is perfectly solvent, and that the suspension is due simply to its inability to realize promptly on its securities.
- Source
- newspapers
2.
July 8, 1893
Receivership
- Newspaper Excerpt
- made a general assignment for the benefit of its creditors, under the insolvency law of 1893; Walter N. Carroll was appointed assignee.
- Source
- newspapers
Newspaper Articles (15)
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Bank Failure at Minneapolis. MINNEAPOLIS, May 17.-A good deal of surprise was manifested this morning, when the Citizens' bank suspended payment. A notice on the door says that depositors will be paid in full. The officials declare that the bank is perfectly solvent, and that the suspension is due simply to its inability to realize promptly on its securities.
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Banks Suspend. MINNEAPOLIS, May 17.—The Citizens' bank has suspended and a receiver has been appointed as asked for by the Northwestern Guaranty company. WATERLOO, Ia., May 17.—The First National bank of Cedar Falls has suspended. Liabilities, estimated, $100,000 to $150,000. The bank is said to be solvent and able to pay all claims in full.
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Chicago Grain Market. QUOTED BY A. P. WEEDEN. OpenLow. HighClos. WHEAT ing. est. est. Ing. 73 May 7116 July 616 764 7th 74% September 79% 79y 775g 79M CORN July 43M 43% 43% 431-64 September 44% 4494 43% 43% OATS May 2916 2914 July 2916 2014 2876 2874 September 263g 26% 26% 26% FORK July .20 85 20 85 20 50 20 60 September 21 05 21 05 20 77 21 80 CARD July 10 90 10 90 10 65 10 65 September 11 15 11 15 10 90 10 90 ANOTHER BANK FAILURE. The Citizens of Minneapolis to Go Into Hands of a Receiver. MINNEAPOLIS, May 17.-The Citizens bank has suspended and an application for a receiver has been made by the North Western Guaran y company. The capital of the bank 1. $250.000
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STILL SUSPENDING. An Epidemic of Failures Has Struck Minnesota Banks. MINNEAPOLIS. May 17.-The Citizens' bank suspended payment this morning. A notice on the door says depositors will be paid in full. The officials declare the bank perfectly solvent and that suspension is simply due to inability to realize on securities. The cashier says the bank will resume by Monday next at the outside. The Citizens' is one of the smaller state banks and has a capital of $50,000. The deposits May 4 amounted to $283,913.
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Two Failures at Minneapolis. Minneapolis, May 17. - The Citizens' Bank has suspended and a receiver has been asked for the Northwestern Guarantee Company,
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BANK SUSPENSION. Minneapolis May 17.-The Citizens' Bank suspended payment this morning. A notice on the door says depositors will be paid in full. The Citizens' is one of the smaller state banks, it has a capital of $25,000. The deposits on May 4th, amounted to $283,513.
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SURPRISED I Minneapolis. Minn., May 17.-A good deal of surprise was manifested this morning when the Citizens' bank suspended payment. The notice on the door says that depositors will be paid in full. Officials declare that the bank is perfectly solvent and that the suspension is due simply to its inability to realize promptly on securities. The Citizens' is one of the smaller state banks of this city.
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Afraid to Stand a Run. The Citizens' Bank of Minneapolis suspended payment Wednesday morning. The notice on the door says the depositors will be paid in full. The officials declare that the bank is perfectly solvent and that the suspension is due simply to its inability to realize on its securities. There has been no run on the bank and the action was taken to protect all depositors alike.
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A Minneapolis Bank Suspends. MINNEAPOLIS, May 17.-The Citizens' Bank suspended payment this morning. A notice on the door saye depositors will be paid in full. This is one of the small state banks, and has a capital of $25,000. Deposits on May 4th amounted to $283,913.
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MINNEAPOLIS. MINNEAPOLIS GLOBULES. Borglars robbed the store of 0. R. Williams at New Brighton on Friday night of $150 worth of boots and shoes. Sheriff Ege has issued orders that visitors will not be allowed at the jail except between the hours of 2 and 4 on Tuesdays and Fridays. Charles Sands. the tennis player who took part in the tournament at SL Louis two years ago, died recently of consumption in California. Tonight at 6:10 the G. A. R. train will leave over the St. Louis road for Indianapolis. It is thought that about 200 members of the order will go. Inspectors Hankinson and Stavlo arrested O. Estes last evening at the request of the St. Paul police, who want the man to answer to the charge of grand larcenv. Supt. Jordan addressed the teachers in the public schools at the Central high school building yesterday morning. As Monday is Labor day, the schools will_not open nutil Tuesday morning. Ole Roge and Juiia Abstlelt were arrested by Court Officer Tom Byrnes last evening on a warrant sworn out by Mrs. Roge, who charges the couple with adultery. W.N.Carroll, assignee of the Citizens' bank. has filed a complete list of clain against the institution. The total amount of claims allowed is $207,058.32. while claims amounting to $102.04 were disallowed. At-a meeting of the congregation of the First Presbyterian church Thursday night. after the usual prayer meeting. the resignation of Rev. J.S. Black was accepted. Mr. Black will leave in a few weeks for a tour of Europe. B.W. Snow, of Chicago, arrived at the West hotel lastevening, dining with his cousins, O'Rourke Brothers. The party took a drive in the country to the residence of Michael O'Rourke, where a general family reunion took place. The "Charles Mack" who won the running race at St. Cloud yesterday from James Maybury, of that city, was none other than Capt. Cragie, of the Minneapolis fire department, who is one of the fastest sprinters in the Northwest. It was the first time that May bury had been defeated. The August report of the poor department shows that 474 applications for aid were made and 495 individuals were assisted. Twelve persons were sent to private hospitals and eight to the poor farm. The poor farm expenses were $473.14. The city physicians made 590 visifs. The Humboldt Mill company has filed a certificate of incorporation. The capital stock is piaced at $200.000. divided into 1.000 shares. The stockholders are W. H. Hinckle, F. B. Foote and Alfred H. Smith. This is simply an incorporation of the firm which has been operating the Humboldt mill. The Wilbur Opera company will return to the Grand tomorrow evening for an engagement of six mights and two matinees. The repertoire for the week includes the following operas, and the order III which they will be given: "The Royal Middy," "Nell," "Gwynne," Fra Diavolo," "Dorothy Bohemian Girl." "Indiana" and "Falka."
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# BRIEF BITS OF NEWS. A detective now in Chicago says that all of H. H. Holmes' alleged victims are alive. Mayor Walbridge of St. Louis has announced his willingness to run for governor. General Duffield has pointed out to congress the necessity of soon marking the Alaskan boundary. The December statement of the Kansas national banks showed that they had heid a reserue of 32.23 per cent. The second annual convention of the North Dakota Dairymen's association will be held at Lisbon, Feb. 13 and 14. Emperor William has appointed Prince Bismartk a knight of the order of Pour le Merito in science and art with voting power. Albert Tollis, who choked his child to death at Brook, Ind., narrowly escaped the vengeance of a mob. He was spirited away by the officers. Charles Edward Tracey, a prominent New York lawyer and former partner of President Cleveland, died at Colorado Springs of consumption. Robbins & Sons of Horace, Ind., prominent shorthorn breeders, are charged with having made fraudulent entries at the Illinois state fair. The affairs of the Citizens' bank of Mineapolis, which failed recently, are said to be in bad shape. It is thought creditors will get a little over 25 cents on the dollar. Fire in the old Chicago stock exchange, Dearborn and Monroe streets, caused a panic among occupants of the building. All were resued without serious injury. The Cherokee delegation have presented to congress a strong memorial protesting against the adoption of the radical changes recommended by the Dawes commission. Ambussador Bayard has sent Queen Victoria a message from President Clevelaed expressing sincere condolence with her majesty on the death of Prince Henry of Battenberg. Louis Bull, son of Sitting Bull, tried to commit suicide by hanging in the Mandan jail. He made the rope by tearing up his shirt. He was cut down just in time to save his life. An electric car on the Knoxville street railway and a switch engine on the Southern railway collided at a crossing at Knoxville. Several persons were injured, two perhaps fatally. A woodchuck of large dimensions has been discovered in the new North Dakota code. Every school treasurer in the state must publish his annual report in full in the newspaper nearest his district. ATE
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STOCKHOLDERS OF BANKS Are Interested in a Case Coming Up Today. The question of the statutory liability of stockholders in banks for the debts of the banks will be argued in the supreme court today in the more or less notorious case of the Citizens' Bank of Minneapolis, which made an assignment during the panic of July, 1893. The sale of the assets netted the creditors 29 per cent of their claims. J. C. Harper, the plaintiff in the action which comes up today, had a judgment against the bank which was returned unsatisfied. He now seeks to have the judgment entered against all the stockholders within the jurisdiction of the court except a few for the full amount of their statutory liability. The stockholders who are made defendants insist that if the total debts in the case had been but a thousand dollars, the plaintiff-if this judgment is correct-could have entered a judgment against every one of these stockholders for double the amount of their statutory liability, which in this case would have been about $420,000. The very object and purpose of an adjudication has to a large extent falled in this case. One of the most important determinations SO far as the defendant stockholders are concerned has not been made by the court. Not one of these defendant stockholders can tell from this judgment the amount payable by him. It is attempted by this judgment, to the extent that the amount adjudged against him exceeds the amount which he under the law should pay, to make each defendant a surety for other defendants, and a joint debtor with the other defendants to that extent. This is contrary to both the letter and the spirit of the statute. It was the plaintiff's duty to allege and prove, and it was the duty of the court on proper allegations and proof to find who, if any, of the stockholders were insolvent and who, if any, of the stockholders were beyond the jurisdiction of the court, and having determined, by its judgment or findings, those facts, to then apportion the indebtedness among the remaining stockholders, and thus definitely determine the amount payable by each. The judgment is also excessive because, contrary to the constitution of the state, it adjudges the defendants to pay double the amount of stock held by them, instead of a liability thereon for once the amount of their stock. This point is covered by the brief of counsel for other appellants, and we do not deem it necessary to repeat here their argument. We simply refer to the same and urge upon the court the correction of this error by the proper modification of the judgment. The court below should by this court be directed to so modify its judgment as to apportion the total liability among all the defendants within its jurisdiction pro rata in proportion to the respective amounts of stock held by them.
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EACH ONE MUST PAY SUPREME COURT HANDS DOWN A DECISION TOUCHING BANKING MATTERS. THE HOLDERS OF BANK STOCK ARE LIABLE FOR DOUBLE THE AMOUNT OF STOCK HELD BY EACH. JUDGMENTS MAY BE OBTAINED For This Amount Whether the Ag. gregate Sum Is Greater Than That or Not. The supreme court, by Jistice Canby, yesterday handed down a long decision defining in detail the liability of the stockholders in the suspended bank. The decision is in an action brought by J. C. Harper to enforce the statutory liability of the stockholders of the Citizens' Bank, of Minneapolis, which suspended payment May 1, 1893, and on July 8, of that year, made a |general assignment for the benefit o its creditors, under the insolvency lav of 1893. Walter N. Carroll was appoint ed assignee, and is made a co-defendan in the action. The assignee paid the creditors 29 per cent. of their claims which is said to be all that will be real ized, unless something is collected oi judgments against apparently insolven debtors of the bank. Harper, the plain tiff creditor, in his action, makes al the resident stockholders parties. Ir
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LIABILITY OF STOCKHOLDERS. Supreme Court Renders an Exhaustive Decision. The Supreme court has during the past week, handed down a decision that bears indirectly on the insolvent Citizens Bank of this place, defining the liability of stock holders in suspended panks and holding that each stockholder must pay his or her share. The decision is in an action brought by J. C. Harper to enforce the statutory liability of the stockholders of the Citizens' Bank, of Minneapolis, which suspended payment May 1, 1893, and on July 8, of that year, made a general assignment for the benefit of its creditors, under the insolvency law of 1893. Walter N. Carroll was appointed assignee, and is made a co-defendant in the action. The assignee paid the creditors 29 per cent. of their claims, which is said to be all that will be realized, unless something is collected on judgments against apparently insolvent debtors of the bank, Harper, the plaintiff creditor, in his action, makes all the resident stockholders parties. In response to an order from the court 337 creditors filed claims, aggregating $202,524.50. The 29 per cent. paid in dividends was deducted, leaving a balance due, principal with interest, to Feb. 8, 1896, of $175,223.69. The capital stock of the bank was $250,000, of which $28,800 was held by non-residents, on whom no service was made. Judgment for double the amount of his stock was made against each resident stockholder, except J. N. Barnes, who seems to have been overlooked. Judgment for double the amount of his stock was also ordered against each prior stockholder who had disposed of his stock within a year before the assignment. The aggregate amount of judgments secured is $513,200. Now comes the question as to the amount each stockholder, prior and present, shall pay. The court holds that the liability of prior stockholders is only secondary. In the lengthy syllabus it is held that stockholders are liable to judgment against them for double the amount of their stock, although if there is any portion of such amount not used in paying off creditors the sum must be returned to the stockholder. In case where the bank becomes insolvent and suspends payment one year after a transfer of the stock has been made the stockholder so transferring becomes as liable as the party to whom the stock is transferred, although the transfer is only secondary liable, and execution cannot issue against him until his trans-