9515. Citizens State Bank (Callaway, MN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
November 12, 1926
Location
Callaway, Minnesota (46.982, -95.910)

Metadata

Model
gpt-5-mini
Short Digest
e32407f4

Response Measures

Full suspension, Books examined

Other: Assets placed in hands of state banking commission; state finance commissioner/examiners involved.

Description

Multiple articles report a run/withdrawals precipitated by the mysterious shooting of two bankers and by prior local bank failures; the state banking department closed the bank (assets placed in hands of the state banking commission). Closure appears permanent (bank closed and placed in hands of state). OCR cleaned (dates normalized to Nov 12, 1926).

Events (2)
1. November 12, 1926 Run
Cause
Local Shock
Cause Details
Runs and depositor uneasiness were precipitated by the mysterious shooting of two bankers at the Callaway bank (and by prior local bank failures), prompting heavy withdrawals
Measures
None reported specifically to stop run; later decision to close bank and place assets in hands of state banking commission to preserve assets
Newspaper Excerpt
both institutions were closed after runs had caused withdrawals imperilling their resources
Source
newspapers
2. November 12, 1926 Suspension
Cause
Local Banks
Cause Details
Closed by the state banking department because of depleted reserves after runs and in the context of other local bank failures (Security State and First National closings)
Newspaper Excerpt
It was decided to close the bank today and place all assets in the hands of the state banking commission.
Source
newspapers

Newspaper Articles (12)
1. November 12, 1926 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, November 12, 1926

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TWO BECKER COUNTY BANKS ARE CLOSED State Banks at Callaway and Detroit Lakes Fail to Open Their Doors Today Detroit Lakes, Minn., Nov. 12.(AP)-Two Becker county banks with total deposits of $930,000 were closed today by the state banking department because of depleted reserves. The institutions are the Security State Bank of Detroit Lakes, with deposits of $780,000. and the Citizens' State Bank of Callaway, with deposits of $150,000. The First National bank here was closed Monday. H. H. Erickson, president of the Callaway bank. is also cashier of the Security bank Closing of the Callaway bank followed the shooting affray there Tuesday in which Frank Murphy, cashier, and W. J. Norby, a stockholder, were found wounded in the former's office. The cause of the shooting and who is responsible for it has not been determined. Declines to Comment County Attorney A. O. Sletvold declined to comment on the developments today before he had a more intensive investigation of the closings and shootings. Financial uneasiness started here with the closing of the First National bank with deposits of approximately $800,000. A few months before the Merchants National bank with deposits of $500,000 closed its doors. Today the Security State bank of this place failed to open its doors. L. J. Norby. president of the bank. is a brother of W. J. Norby, the man who is suffering with wounds in a hospital here. Shortly after the Security State bank closed today, word was received here that the Citizens' State bank at Callaway had closed its doors. Whether the bank closings have any connection with the unexplained shooting of the two Becker county bankers is a point which has not been cleared. Investigation Under Way County Attorney Sletvold was investigating the possibility of there being a connection, but he declined to make any comment on the situation, other than he "was investigating." Thursday night deputies from the state bank examiners' office, officials of the Security bank and the county attorney consulted with officers of the Callaway bank. It was decided to close the bank today and place all assets in the hands of the state banking commission. Mr. Sletvold announced that there is no criminal action hinted in the closing of the bank. Officials said the bank was closed to preserve what was left of the assets to pay off depositors safely after the state department has had time to go over the books and collect on outstanding papers of the bank. Had the bank been permitted to stay open in the face of the run already begun, bank and county of ficials assert the result might have been still more disastrous to depositors. Closing of the Security bank, it is said. has temporarily halted plans for reorganization of the First National. The remaining bank in Detroit Lakes, the Detroit State bank, was preparing this morning to face a run, but money is on hand, business men say, to more than pay off all depositors. County Attorney Sletvold said he would be unable to question Murphy and Norby about their wounds until after Saturday. This delay is occasioned by the cond: tion of the men. Mr. Norby is the more seriously wounded. and in the event he should die, Mr. Sletvold said, a special grand jury will be called to investigate the shooting.

2. November 12, 1926 The Bismarck Tribune Bismarck, ND
Article from The Bismarck Tribune, November 12, 1926

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TWO BECKER COUNTY BANKS ARE CLOSED State Banks at Callaway and Detroit Lakes Fail to Open Their Doors Today Detroit Lakes, Minn., Nov. Becker county banks with deposits of $930,000 were closed today by the state banking department because of depleted reserves. The institutions are the Security State Bank Detroit Lakes, deposits of $780,000. and the CitiState Bank with deposits $150,000. The First National bank here was closed Monday H. H. Erickson, president of the Callaway bank. also cashier of the Security bank Closing of the Callaway bank followed the shooting affray there Tuesday in which Frank Murphy, cashier. and W. Norby, stockholder, found wounded in the former's office. The cause of the shooting and who responsible for it has not been determined. Declines to Comment County Attorney A. O. Sletvold declined to comment on the developments today before he had more intensive investigation of the closings and shootings. Financial started here with the closing of the First National bank with deposits of approximately few months before the Merchants National bank with deposits of $500,000 closed its doors. Today the Security State bank of this place failed to open its doors. Norby. president of bank. is brother of W. Norby, the man who is suffering with wounds in hospital here. Shortly after the Security State bank closed today, word was ceived here that the Citizens' State bank at Callaway had closed its doors. Whether the bank closings have any connection with the unexplained shooting of the two Beckcounty bankers is point which has not been cleared. Investigation Under Way County Sletvold was investigating the possibility there being connection, but he declined to make any comment the situation, other than he "was investigating. Thursday night deputies from the state bank examiners' office, officials of the Security bank and the county attorney consulted with officers of the Callaway bank. It was decided to close the bank today and place all assets in the hands of the state banking commission. Mr. Sletvold announced that there no criminal action hinted in the closing of the bank. Officials said the bank closed to preserve what was left of the assets to pay off depositors safely after the state department has had time to go over the books and collect on outstanding papers of the bank Had the bank been permitted to stay open in the face of the run already begun, bank and county ficials assert the result might have been more disastrous to depositors. Closing of the Security bank, said has temporarily halted plans for reorganization of the First National. The remaining bank in Detroit Lakes, the Detroit State bank. was preparing this morning to face run, but money on hand. business men say, to more than pay off all depositors. County Attorney Sletvold said would be unable to question Murphy and Norby about their wounds until after Saturday. This delay occasioned by the cond:tion of the men. Mr. Norby is the more seriously and the event he should die, Mr. Sletvold said, special grand jury will be called to investigate the shooting.

3. November 13, 1926 The Oregonian Portland, OR
Article from The Oregonian, November 13, 1926

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hands of the state finance commissioner. Heavy runs on the bank in the the Laughlin president, He said the board believed the depositors amply protected. The deposits amounted to about $2,000,000. DETROIT LAKES. Minn., Nov. 12. Becker county banks. with of $930,000 were closed today by the state of depleted reserves. The institutions are the Security State bank of $780,000, Citizens' bank Callaway, with deposits

4. November 13, 1926 The Independent-Record Helena, MT
Article from The Independent-Record, November 13, 1926

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Two Bankers Shot, Institution Closed Detroit Lakes, Minn., Nov. 12.-(P) -Mysterious shooting of two bankcrs in the Citizens State bank of Callaway, Minn., was followed today by the closing of that bank and the Security State bank here because of depleted reserves. Physicians said another 24 hours must clapse before they will permit authorities to question W. J. Norby, stockholder in the Callaway bank and Frank Murphy, its cashier, found suffering from bullet wounds in the bank Tuesday. H. S. Erickson, president of the Callaway bank also is cashier of the Security bank here and both institutions were closed after runs had caused withdrawals imperilling their resources, the bank's officials said. Will Live. Norby and Murphy, found unconscious in locked room in the rear of the Callaway bank, were reported improving today but were not out of danger. There has been no defi- nite indication of responsibility for the double shooting. The Security bank here had deposits of $780,000 and the Callaway bank had $150,000 in deposits.

5. November 13, 1926 Star Tribune Minneapolis, MN
Article from Star Tribune, November 13, 1926

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Bank in Which Officials Were Shot Is Closed Callaway Institution Shuts Doors, Along With Detroit Lakes House. Two Bankers Wounded Tuesday Reported Improving. Becker county today saw the closing of two banks, making three in week, as officials continued their Investiga tion of the shooting of two bankers. Developments today included: Closing of the Citizens State bank at Callaway with deposits of $150,000, because of depleted reserves. Closing of the Security State bank of Detroit Lakes with deposits totaling $780,000. Continuation of check of the records of the First National bank of Detroit Lakes, the largest bank in the county, which closed Monday. W. J. Norby and Frank Murphy, Becker county bankers. found wound. ed Tuesday in the Callaway bank, were improving. physicians reported. Closings Follow Shooting. Today two bank closings, one here and the other at Callaway, follow closely the discovery of the wounded bankers behind the locked doors of the Callaway bank. County Attorney A. O. Sletvold declined to comment the developments today before he made a more complete investigation of the closings and the shootings. Financial uneasiness started here with the closing of the First National bank with deposits of approximately $800,000. A few months before, the Merchants National bank with deposits of $500,000 closed its doors. Tuesday Frank Murphy, vice prest dent of the bank at Callaway, Minn., 17 miles north of here, and W. J. Norby. former cashier of the Becker County State bank at Lake Park, were found unconscious in the Callaway bank, with bullet wounds in their Banks Closed Today. Today the Security State bank of this place falled to open its doors. L. Norby, president of the bank. is brother of W. Norby. one of the men who is recovering from wounds in hospital here. Shortly after the Security State bank closed today. word was received here that the Citizens State bank at Callaway had closed Its doors. The president of the Citizens State bank is H. 8. Erickson. The bank has a capital of $15,000 and surplus of $3,000. Mr. Erickson also is cashier of the Security State bank at this place. Shooting Is Unexplained. The shooting of Murphy and Norby has not been explained. Neither man. in telling his version of the affair, has been able to say how he was shot. Norby declared that he did not know who shot him. Sletvold reported. he said under questioning Thursday. was sitting at table figuring," the county attorney said Norby told him. "Suddenly heard what seemed to be an explosion. not know what happened after that until regained consciousness. was lying on the floor saw Murphy nearby. felt kind of sick to my stomach and then went downstairs to wash. I lost conscious ness." Norby said that there had been no quarrel between him and Murphy. Murphy told the county attorney that he could not remember what happened. He, too, denied that there had been quarrel. Security Bank Had Run. The Security State Bank of Detroit Lakes closed following three-day run on the institution which was due, busimen say, indirectly to the shooting at Callaway. Thursday night examiners from the state banking department, officials of the Security bank and the county at. torney consulted with officers of the bank. It was decided to close the bank to. day and place all assets in the hands of the state banking commission. Mr. Sletvold announced that there is no criminal action hinted in the close of the bank. Seek to Preserve Assets. Officials said the bank was closed to preserve what was left of the assets to pay off depositors safely after the state department has had time to go over the books and collect on outstand ing paper of the bank Closing of the Security bank. it is said, has temporarily halted plans for reorganization of the First National. County Attorney Sletvold said he would be unable to question Murphy and Nordby more about their wounds until after Saturday This delay is OC. easioned by the condition of the men. Mr. Norby is the more seriously wounded and in the event he should die. Mr. Sletvold said special grand jury will be called to Investigate the shoot-

6. November 13, 1926 Douglas Daily Dispatch Douglas, AZ
Article from Douglas Daily Dispatch, November 13, 1926

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TWO BANKS CLOSE, DUE TO DEPLETED RESERVE, AFTER EMPLOYES SHOT DETROIT LAKES, Minn., Nov. 12 (P)-Mysterious shooting of two bankers in the Citizens' State Bani- of Callaway, Minn., was followed today by the closing of that bank and the Security State bank here because or depleted reserves. Physicians said another 24 hours must elapse before they will permit authorities to question W. J. Norby, stockholder in the Callaway bank and Frank Murphy," its cashier, found suffering from bullet wounds n the bank Tuesday. H. S. Erickson, president of the Callaway bank, also is cashier of the Security bank here and both institutions were closed after runs had caused withdrawals imperilling their resources, the banks' officials said. Norby and Murphy, found unconscious in a locked room in the rea! of the Callaway bank, were reported improving today, but were not oui of danger, their physicians said. There has been no definite indication of responsibility for the double shooiing. The Security bank here had aeposits of $780,000 and the Callaway bank had $150,000 in deposits.

7. November 13, 1926 The Berkshire Eagle Pittsfield, MA
Article from The Berkshire Eagle, November 13, 1926

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Closing of Banks Follows Shooting of Two Bankers DETROIT LAKES. Minn., Nov. mysterious shooting of bankers in the Citizens' State bank Callaway was followed yesterday the closing of that bank and the curity State here because reserves. another 24 hours must elapse before they will permit authorities Norby, stockholder in the Callaway Frank Its cashier, found the Tuosday suffering from bullet wounds. Erickson, Callaway bank, cashier Security bank and booth Instituclosed after runs had caused imperilling their resources, the banks' officials The Security here had posits $780,000 the bank had $150,000 deposits. Sletvold, county said found nothing closing banks warrant any ction by him. closing of First National bank here Monday, followed by the unexplained shooting of Norby and caused among depositors Callaway bank bank, and to that their closing.

8. November 13, 1926 The Sacramento Bee Sacramento, CA
Article from The Sacramento Bee, November 13, 1926

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BANKS CLOSED AFTER MYSTERY SHOOTING OF TWO Officials Found In Bank With Bullet Wounds; Depositors "Run" On Bank DETROIT LAKES (Minn.). Nov. shooting bankers in the Citizens' State Bank of Callaway, Minn., was followed yesterday by the closing of that bank and the State Bank here because reserves. Physicians said another twentyfour hours must elapse before they will permit authorities to question Norby. in the Callaway bank. and Frank Murphy. its cashier, found suffering from bullet the Tuesday. Closed After "Run." H. S. Erickson, president of the Callaway Bank, also is cashier the Security Bank here, and both institutions were closed after runs had caused withdrawals imperiling their resources, the banks' officials said. Norby and Murphy, found unconscious in the rear the Callaway Bank, reported improving to-day, but were not out of their physicians said. There has been no definite indication of responsibility for the double shooting. SUFFRAGE WORKER DIES. LOS ANGELES, Nov. 13.-(P)Mrs. Mila Lupper Maynard, 60, author, lecturer and philanthropist, was quite geenrally known for her work on behalf woman suffrage. last night. She came here number of years from Denver. where she was engaged as an editorial writer for the Denver News-and Times. TO-DAY'S 12 Noon Highest yesterday

9. November 13, 1926 Star-Herald Scottsbluff, NE
Article from Star-Herald, November 13, 1926

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Customers Become Suspicious After Two Officials Had Been Found Wounded. Detroit Lakes, Nov. Mysterious of bankers the Citizens State bank of Callaway, Minn. was followed today by the closof that bank and the Security State bank here because depleted Physicians said another hours must elapse before they will permit authorities question Norby, holder in the Callaway bank and Frank Murphy, its cashier, found suffering from bullet wounds received the bank Tuesday. H. Erickson, president of the Callaway bank also cashier the Security bank here and both institutions were closed after runs had caused withdrawals imperiling their resources, the banks' officials said. Norby and Murphy, found unconsclous locked room in the the Callaway bank were reported improving today but were not out danger, their physicians said. There has been definite of sponsibility for the double shooting. The Security bank heer had deposits of $780,000 the Callaway bank $150,000 in deposits. Sletvold, county attorney said he had found nothing in the closing of the banks to warrant any action by him. The closing the First National bank here Monday. followed by the unexplained shooting of Norby and Murphy "caused uneasiness among positors the Callaway bank and curity Sletvold's opinion, and led to the runs that forced their closing.

10. November 13, 1926 Lewistown Daily News Lewistown, MT
Article from Lewistown Daily News, November 13, 1926

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MAID IN HALL HOME FOUR YEARS PROVES STRONG WITNESS IN TRIAL BRINGS CRISIS BANKS DETROIT LAKES. Minn., Nov. shooting of two bank in the Citizens' State bank of Callaway, Minn., was followed today by the closing of that bank and the Se curity bank here, because of depleted reserves. Physicians said another 24 hours must elapse before they will permit authorities question W. Norby, stockholder the Callaway bank and Frank Murphy, its cashier, found fering from bullet wounds in the bank Tuesday H. Erickson, president of the Callaway bank also cashier of Security bank here and both institutions were closed after runs had imperilling their sources, the banks' officials said. Norby and Murphy, found unconscious locked room in the rear of bank, were reported proving today, but were not danger, their physicians said. There has been definite indication of for the double shooting. The Security bank here had deposits and the Callaway bank had in deposits.

11. November 19, 1926 The Producers News Plentywood, MT
Article from The Producers News, November 19, 1926

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MANY BANKS GO TO WALL Trust Co. Stops Business TWO MORE Kansas City, Nov. 13.-The state finance commissioner was in charge of the Federal Trust company of Kansas City which suspended busiMINNESOTA ness yesterday following recent heavy withdrawals. BANKS FAIL The bank was organized under the state banking laws with a capital of $200,000 and a surplus of $40,000. Institution Where Two Bankers Were Deposits totalled approximately $2,Found Shot Closes Doors - Three 000,000 and resources were listed at nearly $3,000,000. The institution Day Run Shuts Security State. was accorded privileges of the federal reserve system. Two Becker county banks with total P. E. Laughlin, president, said he deposits of $930,000 were closed by thought the deposits were safe. A the state banking department because city deposit of $300,000 was protectof depleted reserve. ed by government bonds. Funds of The institutions are the Security the state of Missouri were covered State bank of Detroit Lakes and the by a surety bond. Citizens State bank of Callaway, scene Laughlin organized the Mid-West of the shooting of W. J. Norby and National Bank and Trust company Frank Murphy, Becker county bankhere 10 years ago. This institution ers recently. was merged in 1920 with the NationFailure of the two institutions al Reserve bank under the name of marked the third bank failure in Becthe Mid-West Reserve Trust comker county within a week. The First pany. It closed a year later. De~ National bank of Detroit Lakes, largpositors were paid but directors and est bank in the county, closed Monstockholders lost investments. A day by order of the board of directshort time later, Laughlin became ors. head of the Federal Trust company. A. J. Veigel, commissioner of banks

12. November 19, 1926 The Producers News Plentywood, MT
Article from The Producers News, November 19, 1926

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TWO MORE MINNESOTA BANKS FAIL Institution Where Two Bankers Were Found Shot Closes Doors - Three Day Run Shuts Security State. Two Becker county banks with total deposits of $930,000 were closed by the state banking department because of depleted reserve. The institutions are the Security State bank of Detroit Lakes and the Citizens State bank of Callaway, scene of the shooting of W. J. Norby and Frank Murphy, Becker county bankers recently. Failure of the two institutions marked the third bank failure in Becker county within a week. The First National bank of Detroit Lakes, largest bank in the county, closed Monday by order of the board of directors. A. J. Veigel, commissioner of banks announced at St. Paul that the deposits of the Security State bank at Detroit Lakes totaled $780,000 while those of the Callaway institution totalled $150,000. Officer in Two Banks H. S. Erickson, president of the Callaway bank, is also cashier of the Security State bank at Detroit Lakes. L. J. Norby, president of the Security bank, is a brother of W. J. Norby, former cashier of the closed Becker county bank of Lake Park, who was wounded in the Callaway shooting incident. Frank Murphy, the other wounded banker, is president of the Callaway institution. W. J. Norby is a stockholder in the Callaway institution. Closing of the Security State bank and the First National bank leaves Detroit Lakes with but one bankThe Detroit Lakes State bank. The remaining bank was preparing this morning to face a run as a result of the closing but money is on hand, business men say, to more than pay off all depositors. A three-day run on the Security State bank, said to have been precipitated by the closing of the First National bank. was responsible for the closing, O. L. Granvold, a state bank examiner, announced today. Closing of the two Detroit Lakes banks, inability to make collections, and depleted reserve, were given as causes of the Callaway failure. The immediateca use for the failure was the closing of the Detroit Lakes bank, it was said. Several years ago Callaway's two banks, the State bank and the Citizens State bank, each of which was capitalized at $10,000, consolidated and were capitalized at $25,000. The State bank was backed by the First National bank of Detroit Lakes and the Security State bank backed the Citizens State bank. When the consolidation was completed, each of the Detroit banks retained an interest in what became the Citizens State bank of Callaway.