State Bank - Brownsdale, MN

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 9, 1920
Location: Brownsdale, Minnesota (43.740, -92.869)

Metadata

Model: gpt-5-mini
Short Digest: bb2eca6e

Response Measures

None

Description

Article (Mankato Free Press, 1920-01-16) reports that the State Bank of Brownsdale was placed 'in the hands of F. Pearson, superintendent of the banking department of Minn.' after the cashier O. W. Root confessed to extensive falsification/embezzlement. No run is described; the bank appears taken into state control and effectively closed/placed in receivership.

Events (3)

1. January 9, 1920 Other

Newspaper Excerpt: Cashier Root confessed that he is $30,000 short ... he had forged signatures ... it is said Root forged $14,000 worth of notes ... Every person whose name is on a note will be asked to come to and identify his signature.
Source: newspapers

2. January 9, 1920 Receivership

Newspaper Excerpt: The State Bank ... is in the hands of F. Pearson, superintendent of the banking department of Minn.... examiners sent to Brownsdale, arriving Monday. Cashier Root confessed that he is $30,000 short ... Root admitted he had forged signatures and falsified entries.
Source: newspapers

3. January 9, 1920 Suspension

Cause: Government Action
Cause Details: State superintendent and examiners took control after discovery of cashier O. W. Root's falsifying accounts and large shortages (reported $30,000, possibly more).
Newspaper Excerpt: The State Bank ... is in the hands of F. Pearson, superintendent of the banking department of Minn., who has ... examiners who are making a examination of the bank's condition.
Source: newspapers

Newspaper Articles (1)

1. January 16, 1920 The Mankato Free Press Mankato, MN

Article from The Mankato Free Press, January 16, 1920

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Article Text

AT BROWNSDALE WAS LOOTED O. W. Root Reported to Confessed Falsifying The Accounts January 9.-The State Bank ownsdale is in the hands of F. earson, superintendent of the banking department of Minnewho has assisting him two state examiners who are making a of the bank's condition. Cashier Root confessed that he is $30,but it is said the shortage to double this amount. Root that he made false entries orged signatures of well known disclosing of the condition of came through a Graft for made by the Brownsdate bank the Austin National bank which refused it and it was reto the Chicago bank which the Minnesota state banking and two bank examiners sent to Brownsdale, arriving Monday. bank examiners arrived while directors were meeting and upon their work of examinaGoing To Increase Salary. of the directors had just made that the salary of Cashier raised from $100 a month to when one of the examiners callattention of the cashier to an in one of his books which did alance with another. In carryaccount he had dropped $2,000 amount. asked about it Root frankly that he had falsified the The examiner asked him if the penalty and he said he He then acknowledged that he eight or ten thousand short the examiner discovered dishe raised the amount of to $30,000. directors were at once notified was called before them. The were produced and the genuineof the signatures on several questioned and Root admitted had forged them. Just how these forgeries will amount to blematical. It is said that Root forged $14,000 worth of notes the overdraft of a patron of but this man said he had no raft. Every person whose name a note will be asked to come to and identify his signature. Find Another Shortage. shortage that cannot be came about by another of false entries, used in deFor instance if a man de$50 an entry for that amount on a deposit slip for the but the entry in the deposit would show but $5. In order how much shortage there is deposits it will be necessary depositor to bring his pass or deposit slips. ther system of high finance against Root is that when a whose credit was absolutely less, asked for a loan, say of