9553. Dilworth State Bank (Dilworth, MN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
December 24, 1928
Location
Dilworth, Minnesota (46.877, -96.703)

Metadata

Model
gpt-5-mini
Short Digest
c881961e

Response Measures

Full suspension

Other: Placed a receiver (H. Wray) pending reorganization; closed proactively to prevent a run.

Description

Newspapers (Dec 24–28, 1928) report a run-related panic triggered by the failure/distress of First/Moorhead National Bank, leading directors of Dilworth State Bank to close the bank pending reorganization. A receiver (H. Wray) was placed by the state examiner, suggesting the bank did not simply remain open; therefore classified as run -> suspension -> closure. OCR errors in articles corrected (e.g., Moorehead/Moorhead, Dilworth typos).

Events (3)
1. December 24, 1928 Run
Cause
Local Banks
Cause Details
Withdrawals triggered by runs/distress at the First (Moorhead) / Moorhead National Bank, producing fear at Dilworth
Measures
Directors decided to close the bank pending reorganization; issued statement reassuring depositors
Newspaper Excerpt
run on the Dilworth State Bank of Dilworth as result of the of the First and Moorhead National Bank of Moorhead
Source
newspapers
2. December 24, 1928 Suspension
Cause
Local Banks
Cause Details
Bank was closed by its directors to prevent a possible run after withdrawals linked to the Moorhead bank situation
Newspaper Excerpt
They issued statement declaring that the bank was closed pending reorganization
Source
newspapers
3. December 25, 1928 Receivership
Newspaper Excerpt
H. Wray has been placed receiver by Irwin Wright, chief bank examiner for this pending re-organization. Re-Opening Plans Talked. for reorganization ... plans are to be taken up immediately. The bank was closed pending reorganization, due to continued heavy withdrawals of deposits resulting from 'widespread false and vicious rumors,' according to officials. The statement of the bank ... showed the bank had more than a quarter of million dollars ... pending re-organization. H. Wray has been placed receiver by Irwin Wright, chief bank examiner for this pending re-organization.
Source
newspapers

Newspaper Articles (5)
1. December 25, 1928 Grand Forks Herald Grand Forks, ND
Article from Grand Forks Herald, December 25, 1928

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Article Text

DILWORTH BANK CLOSES DOORS, FEARING RUN Dilworth, Minn., Dec. 24.-(AP) run on the Dilworth State Bank of Dilworth as result of the of the First and Moorhead National Bank of Moorhead directors of the Dilworth indecided to close that bank statement that the bank closed don't owe cent to any Owen M president of the Dilworth State Bank day of the circumstances and prevent possible to close the bank pending Some of the officers of the First and Moorhead National of Moorhead are directors of the Dilworth Re-Opening Plans Talked. for reorganization of the First National bank of closed Saturday by order of the board of are to be taken up immediately. it announced today by bank officials. The bank was closed pending reorganization, due to continued Leavy withdrawais of deposits resulting from "widespread false and vicious rumors,' according to officials The statement of the bank, issued Oct. 3. showed the bank had more than a quarter of million dollars, in quick consisting of Other bonds and securities and cash This statement showed capital surplus and profits with surplus and $1,954.14 in divided Since that time the undivided profits item had to $20 000 and Christmas greeting card published few days before the undivided profits of Bank officers maintain that the bank was and is in good condition. that there has been considerable liquidation this fall of their out standing loans and that the closing was decided upon solely to protect depositors and allow and reopening H. Wray has been placed receiver by Irwin charge Wright, chief bank examiner for this pending re-organization.

2. December 25, 1928 Star Tribune Minneapolis, MN
Article from Star Tribune, December 25, 1928

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Article Text

Dilworth Bank Closed to Allow Reorganization Ing run on the Dilworth State bank of Dilworth as result of the of the First and Moorhead National bank of Moorhead. direct tors of the Dilworth institution de to close that bank today. They issued statement declaring that the bank was closed pending cent to any bank." said Owen Lamb, president of the Dilworth State bank, today. "We however, in view of the circumstances and to prevent a possible close the bank pending re-organization. Some of the officers of the First and National bank of Moorhead are directors of the Dilworth bank.

3. December 26, 1928 Morning Pioneer Mandan, ND
Article from Morning Pioneer, December 26, 1928

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Article Text

DILWORTH BANK FEARING RUN Dilworth, on the Dilworth State fearing Bank Dilworth as result the First National Bank Moorhead, rectors of the Dilworth cided to close that bank today They Issued that the bank closed pending reorganization don't owe cent to any bank" said Owen Lamb, president the State Bank today Dilworth however, in view of the to prevent possible close the bank pending the officers of the Moor Some the Dil head bank bank.

4. December 28, 1928 Mandan Pioneer Mandan, ND
Article from Mandan Pioneer, December 28, 1928

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Article Text

DILWORTH BANK FEARING RUN Minn., 24 fearing run the State Bank Dilworth result the First National Bank Moorhead, rectors of the Dilworth close that bank today They Issued statement declaring that the bank was closed pending reorganization don't cent to any bank" said Owen Lamb, president of Dilworth State Bank today cided, view of the cumstances and to prevent possible run, close the bank pending Some of the officers of the Moor head bank are directors the

5. April 19, 1933 The Decatur Daily Decatur, AL
Article from The Decatur Daily, April 19, 1933

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Article Text

BEHIND THE SCENES IN DUTCHER BY RODNEY DUTCHER No. 38163 and Convict No. 38155 were cellmates at the Leavenworth penitentiary. They are the office building of the House of Representatives. Convict No. has become Congressman Francis Shoemaker of Minnesota. Convict No. 38155 is the man he chose as secretary after M used to be bank president. They two years ago on the train carrying them to Shoemaker after conviction for "scurrilous matter' through the mail, and Lamb for violation of the banking laws Shoemaker one the four new Farmer-Labor congressmen elected in Minnesota last November. His case still before elections committee on the contention that his conviction took away his citizenship. but the House in March voted 230 to 75 to allow him to take his seat. gray-eyed, medium height. man always anxious to fight for the farmers and wage Lamb white haired plain-spoken man of Like Shoemaker, he doesn't mind admitting that he an ex-convict But he does want it known that he was sentenced only for "technical" violation and that depositors in his bank have been paid off per cent. pretty good rate for busted "Ability," says Shoemaker when asked why he selected fellowconvict to handle his office in Washington. "There's fine man He humanitarian. He spent seven months in France driving an ambulance at the front He used be chemist until his family left him bank. graduate of the University of North Dakota. "He on economics and all about banking problems. He has the confidence the people of his community. They know he's honest and so Shoemaker, radical editor and promoter of municipal power plants, fought the Republican machine in Minnesota for years. He campaigned against CongressAugust Andresen. Republiin 1930 About that time in his paper. Organized Farmer.' he waging campaign against held trusts and unloaded worthless stocks on beneficiaries. He especially one banker who. after being compelled make good in that sort of wrote him mean letter. Shoemaker wrote back. addressing the envelope to Robber of Widows and Orphans." judge whom Shoemaker says he had ferred tool of the power trust,' sentenced him He had the choice of year and day Leavenworth five years of probation. He chose the former So Shoemaker and Lamb met on the train. Shoemaker landed in the chaplain's office and Lamb became clerk Lamb took down the life histories of prisoners. Shoemaker studied the cases and recommended placements within the prison. Today Shoemaker has his prison the tags of his automobile. He went back Minnesota, obtained the nomination against Andresen last year. and elected. Lamb had been president of the Dillworth state bank and director of the larger Moorehead Nationbank in community nearby. There run on the Moorehead bank 1928 and Lamb closed protect depositors. Closing Moorehead bank caused the Dill. worth bank close and Lamb he lost But he was left holding the bag for about $4500 which been left uncovered by an inside deal involving the use of some school warrants. Lamb paid off the $4500 at once and thought was settled, but few days before the statute of limitations ran out he was arrested as result of he calls "political spite work."